TT plans to exit the spinning business and focus on garment manufacturing. The New Delhi-based knitwear and garment maker reported a 25 per cent dip in turnover. It attributes the loss in the last fiscal to the ongoing restructuring exercise and tax-related issues.
The company has already shut three of its five spinning units due to the low margins and high risks associated with the sector. It has a strong presence in the innerwear segment in north and east India through its flagship TT brand. It also exports yarn and fabric to 65-odd countries. This fiscal TT hopes to be back in the black and will focus on high value-added offerings through its garment range.
TT will invest around Rs 50 crores to set up garment-making facilities in Uttar Pradesh, West Bengal and also ramp up existing units in UP, Tamil Nadu and Kolkata. The unit in UP is likely to go on stream from July 18.
The company also procures from third-party manufacturers in Ludhiana and Delhi. As part of TT’s diversification plan, it had set up the garment brand HiFlyer in 2017. The brand is now being retailed through both offline and online channels. Expansion will be through a network of exclusive brand outlets and mutli-brand outlets.