Capacity expansion and the subsequent improvement in overall efficiency, as well as a growing product portfolio, have all contributed to a second consecutive quarter of sales and profit growth at circular knitter Teejay Lanka. After struggling with higher cotton-yarn prices, the company’s primary raw material, challenging sale prices and margins, and higher energy costs, Tejay reported a slight increase in the bottom line for the final quarter ended in March 2018. The company posted 3 per cent year-on-year in earnings to 72 cents a share or 508.4 mn as it restricted overheads while the sales grew 13 per cent to 6.6 bn.
Company Chairman, Bill Lam said the Group’s Indian operations’ capacity expansion had also improved significantly and was at the expected performance levels at the end of the fourth quarter. He also said the group had positioned itself to yield the benefits of GSP Plus. “Strategies have been initiated to keep pursuing new opportunities from leveraging our regional footing, providing flexible and better solutions and to broaden our customer portfolio,” Lam said.
The company, which has its origins in the UK knitting industry heartland around Leicester, is a major manufacturer of knitted fabrics for intimate apparel and sportswear industries. It is a major supplier to apparel manufacturers throughout Asia and retailers counting Victoria’s Secret, Marks and Spencer and Intimissimi among its major clients.
It is currently majority owned by two other industry giants, Hong Kong-based circular knitting Pacific Textiles, which has a 28 per cent stake in the company, and Sri Lanka’s Brandix Lanka, which owns 33 per cent. Although a company with more than 50 years of knitting experience in the UK, Textured Jersey was established in its current guise in Sri Lanka 2000 in partnership with MAS Holdings and Textured Jersey UK. Pacific Textiles then bought Textured Jersey UK’s shares in 2005.
The company produces both single and double jersey fabrics on mainly Fukuhara and Pai Lung machines. It also runs banks of the latest circular knitting technology from Mayer & Cie, Terrot and Orizio with fabrics knitted in a range of weights and gauges from 100 to 3001 gsm. The gauges used for the rib fabrics are 15, 16, 18 and 20G, for single jersey 24, 28, 32 and 36G and for Interlock 24, 28 and 40G.
As well as basic jersey, rib, interlock and pique, they also produce a number of specialty fabrics such as Ponti de Roma, waffles, striped fabrics, thermals and slub jersey. In finishing terms, the company operates a wide variety of the latest European equipment for dyeing and finishing processes providing bio-polished fabrics, as well as sueded, and resinated fabrics.
Tejay also recently announced that Chief Executive Officer, Sriyan de Silva Wijeratne will to step down citing personal reasons ending his four and a half year stint at the company. Wijeratne will stay in the company until July to facilitate the smooth transition of responsibilities to his successor, Shrihan Perera, a former CEO of Brandix Knit Apparel Division, who took office at the beginning of May.