Today, they are mostly involved in the manufacture and processing of fabrics suitable for making shirts (shirting). Most of their revenue comes from providing this service to other textile manufacturers. Their operations include:
1) They procure ‘Grey Fabric’ from their customers
2) They process the fabric, dye it and then ship it to their clients
The company plans to set up an additional fabric processing unit in M/s. Jakharia Industries with a proposed capacity of 360 lakh meters p.a. To give you some idea about scale, their current production capacity stands at about 760 lakh meters p.a.
However, the new production facility will be set up under a partnership firm where Jhakaria Fabrics will be entitled to 85% of the profits. We don’t quite know why this new production facility has been set up under a partnership firm and we would not want to speculate on this matter further. Instead we want to bring to your attention the problems that have plagued the new facility.
This project was initially scheduled to be implemented with a lower capacity; However, due to delay in obtaining pollution control clearance, the project remained un-implemented. Thereon, after obtaining such clearances, the management, based on their market demand analysis re-worked the size of the project and the same is now scheduled to be completed by April 2019