Sri Lankan fabric manufacturer expand operations to synthetic fabric manufacturing
Ocean Lanka (Pvt.) Ltd, which is one of Sri Lanka’s largest weft knitted fabric manufacturers, has reportedly planned to expand its operations to synthetic fabric manufacturing with the support of its minority shareholder, Brandix Group.
“We are planning to expand into synthetic fabrics by 2021. It could be either polyester or nylon. We are working together with Brandix on the expansion. Our marketing team is conducting a market research to determine the current size of the synthetic fabric market as well as the demand. Based on the outcome of the market research, we will plan our expansion,” Ocean Lanka Managing Director Dr. Austin Au has told Sri Lanka’s Mirror Business.
Ocean Lanka was founded in 1996 as a joint venture between Hong Kong-based Fountain Set Holdings and two of Sri Lanka’s largest apparel manufacturers, Brandix and Hirdaramani. Fountain Set Holdings holds a 60 percent stake in Ocean Lanka while Brandix and Hirdaramani hold 20 percent each.
According to reports, Ocean Lanka is engaged in knitting, dyeing, printing and sales of dyed fabrics for apparel manufacturers serving leading global brands such as Victoria Secrets, Nike, Adidas, Marks and Spencer, GAP and Next.
Dr. Au has told the media that Ocean Lanka has been receiving an increased number of inquiries on synthetic fabrics from its clients, who are serving these global brands.
“In recent years, we have received many inquiries on synthetic fabrics. The market trend has shifted now. In particular, the United States or the European consumer prefers to have stretchable synthetic products now,” he has said.
Ocean Lanka plans to explore possibilities of acquiring an additional land plot in the Biyagama BOI Zone, where its current production plant is located at, to set up the facilities to manufacture synthetic fabrics.
Dr. Au has further stated that leading Japanese casual wear designer, manufacturer and retailer, Uniqlo, was acquired as a new customer of Ocean Lanka recently.
“This can help us to penetrate into the Japanese market. Usually, we sell our fabrics to the apparel manufacturers who fulfill orders to leading brands in Europe and the United States,” he has observed.
He has added that Ocean Lanka has been able to establish itself as a one-stop shop serving all requirements of apparel manufacturers.
OSL take:
Sri Lankan businesses are constantly developing and expanding operations, especially the country’s apparel sector. Sri Lanka’s geographical positioning, the ease of doing business environment in the country and the many trade agreements as well as the trade concessions enjoyed by the country have helped boost the apparel sector in the country. Therefore, the business/investment opportunities in Sri Lanka’s apparel sector continues to expand.
| Article Code : | VBS/AT/20191125/Z_4 |