Superfine Knitters, one of the well-known fabric and apparel manufacturers based in Ludhiana, Punjab, India is coming up with its IPO (Initial Public Offering) of Rs. 4.08 crore. Thrilled about this move, Ajit Lakra, Managing Director of the company who is also associated with many industry associations of the city, told Apparel Resources, “It is better to go in public for funds rather than paying interest to the banks. With funds, we will however improve overall but there are four key points that we have on priority. These are technology upgradation for fabric manufacturing, energy audit, system upgradations and increased efficiency. All these four areas will lead to further profitability of our company.”
Superfine Knitters is the first apparel company in Ludhiana which will be listed on an SME platform of Bombay Stock Exchange (BSE). It appears to be a trend that apparel companies across the nation are now moving toward IPOs as recently Jaipur-based apparel manufacturer and online retailer Nandani Creation also listed itself for the same amount.
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Superfine Knitterswhich noted turnover of 84.28 crore in 2015-16 is catering mainly to domestic market and working with apparel brands like Pepe Jeans, Benetton, Numero Uno, Crimsoune Club, Life Style, Bioworld, etc. Out of its total apparel production, the apparel manufacturer exports 25 per cent and will continue the same strategy in future also as Ajit says, “Though there is growth in export business but domestic has more scope and growth opportunities, so we will have major focus on domestic.” In its total business, fabric sales contribute almost 40 per cent. Currently,the company has two manufacturing units in Ludhiana with the workforce of more than 500. The company is also active on sustainability front as it is using solar power in its factory which is not common in Ludhiana’s textile & apparel industry.