Textured Jersey Lanka (Private) Limited, a leading manufacturer of knitted fabrics for the intimate apparel and sportswear markets is planning to go public, a Sri Lanka Daily Mirror report said today. Specializing in the manufacture of high quality, knitted stretch fabrics, Textured Jersey is a major supplier to apparel manufacturers throughout Asia, Europe and the USA, including Victoria’s Secret, Marks and Spencer and Intimissimi.

The company is currently jointly owned by Pacific Textiles, which has a 60% stake and Brandix Lanka, which has 40%. ”Post-listing, subject to receiving CSE approval, it is expected that approximately 30% of Textured Jersey will be held with the public, with part of the dilution taking place via a pre-IPO placement and the balance through an IPO of new shares. The total transaction value is estimated to be approximately Rs. 2.9 billion,” the report said.

“Infrastructure at the 650,000 square feet in Avissawella enables a capacity to knit, dye and finish up to 2.5 million metres of fabric a month. Despite facing challenges in the form of rising cotton prices, high energy costs and loss of tariff concessions, Textured Jersey has delivered strong financial results during the past five years.”

Bill Lam, Chief Executive Officer of Pacific Textiles and a Director of Textured Jersey, said in a press statement that the listing would enable Textured Jersey to take advantage of potential growth opportunities in both Sri Lanka and the South Asian region. “High global cotton prices are an industry-wide headwind at present, but we believe this will facilitate industry consolidation in the longer term, and stronger players will continue to gain market share,” he said.

Ashroff Omar, Chief Executive Officer of Brandix Lanka and a Director of Textured Jersey, said that the listing was sought to provide Textured Jersey with greater operational flexibility and to provide a separate independent platform to raise funds from the capital markets to support its future growth aspirations. “Knit products constitute  the fastest growing segment of the Sri Lankan apparel export market, which is growing strongly even after the end of the GSP+ concessions in August 2010, and Textured Jersey is the country’s pre-eminent producer of value-added knitted fabric,” said Omar.

The Hong Kong listed Pacific Textiles is a leading manufacturer of customized knitted fabric in the global textile industry, with a focus on complex, value-added fabrics. It has one of the largest textile manufacturing facilities in China, and provides integrated services of knitting, dyeing, printing and finishing, with an annual production capacity of approximately 87 million kg. “Pacific Textiles reported a 21% YoY increase in revenue for six months ended 30th September 2010 to HK$ 3.7 billion (US$ 474 million), with net profit attributable to shareholders rising by 17% YoY during the same period to HK$ 453 million (US$ 58 million),” the report said.

“Brandix has been accredited as Sri Lanka’s largest apparel exporter. Being the pioneer of the concept of ‘total solutions’ in Sri Lanka’s apparel sector, Brandix is a preferred solutions provider to some of the world’s leading apparel brands, including Victoria’s Secret, PINK, Gap, Banana Republic, Marks &Spencer, Lands’ End, Tommy Hilfiger, Hanes, Express, Hand&M, Intimissimi and Tesco.”

 The Group specializes in casual bottoms, underwear, lounge and sleepwear, bras, textiles, knitted and woven fabrics, sewing and embroidery thread, accessories and hangers, and also offers wet processing and finishing and fabric printing. The Brandix Group is supported by 32 manufacturing locations island-wide, in addition to other facilities in the South Asian region, and strategically located international sourcing offices, and directly employs over 30,000 associates in Sri Lanka.