Mumbai, Jan. 7: Raymond Ltd today announced a Rs 200-crore expansion programme that will include setting up of two manufacturing units for apparel and denim wear and expanding the capacity of its existing denim manufacturing facility.

The leading textile and apparel major is now proposing to set-up a suit and formal trouser manufacturing facility at Bangalore with an annual capacity of 5 lakh suits and 10 lakh trousers in two phases at a total project cost of Rs 40 crore. The first phase of the project would become operational by March, while the second phase in September 2005.

The company is also setting up a denim wear manufacturing facility at Bangalore with an annual capacity of 3 million garments at a total project cost of Rs 44 crore, which will be operational by December 2004.

Further, an expansion of its denim manufacturing capacity at Yavatmal, Maharashtra is also on the cards. The expansion will see Raymond's manufacturing capacity go up to 30 million metres at a total project cost of Rs 127 crore, which will go on stream by April 2005.

The expansion programme will be funded from internal accruals. Raymond is also looking to raise funds from the textile upgradation fund (TUF) scheme at a competitive cost.

Raymond chairman and managing director Gautam Singhania said, “Our investments in capacity expansion and new garment units are in line with our vision to become a global player in our areas of core competence.”

Singhania explained that while Raymond will now be moving up the value chain, the objective is to position itself as a one-stop shop offering complete solutions to the discerning customer in the international markets. Further, these capacities are being created to meet the large demand emanating after quotas have been phased out.