Avinashi, a garment maker for SP Apparels situated in Coimbatore, has consolidated its plants by shuttering four minor factories and relocating staff to larger factories for improved factory productivity. The new facility at Sivakasi is scheduled to go up in July.
“Last month, we consolidated our factories by closing them – some of the small factories, and we moved the employees to bigger factories, which has given us better efficiency in running the factories,” said CMD P Sundararajan in the company’s Q4 earnings conference call.
According to S Latha, Executive Director of SP Apparels, four of the company’s 18 plants have been closed, she said to analysts. The corporation sought to concentrate the machines for better efficiency and operating for better control, and the shuttered facilities were tiny factories with 100 machines each.
Around 200–250 of the 400 employees have been moved to different factories. The company is attempting to improve the machine capacity at the current factory to accommodate the remaining 150 workers, she said.
“We are not closing any more factories. In fact, we are going to increase capacity with our own machines with larger capacities,” she added.
The integrated garment company reported Rs. 1,078 crore for the fiscal year that ended on 31st March 2023, marking the first time it has achieved the milestone of Rs. 1,000 crores in consolidated revenue in a year. Compared to the same year last year, when there were Rs. 860 crore, this is a 25 per cent increase.
Also Read: SP Apparels achieves Rs. 1,000 crore revenue mark in FY 2022-2023
