Kathmandu, Nepal
Surya Nepal diversified into the garments business nearly four years ago by exporting garments from Nepal to India. These garments were initially manufactured by various garment manufacturers in Nepal and were exported to India by Surya Nepal.
The company then set up a manufacturing facility with state of the art technology on a leased premise and commenced production from January 2004. Till date the company has invested in excess of NRS 16 crores in the area introducing world-class technology like CAD, CAM, automatic spreader, automatic pocket setter, automatic body, collar and cuff pressing machines, high-speed sewing machines backed with extensive training of people and leading edge processes and systems.
Till date Surya Nepal has exported nearly 40 lac pieces of readymade garments to India at a cumulative value of more than NRs.160 crores. The unit has generated employment for more than 500 people and almost 90% of the employment generated has been for women.
In October 2004 Surya Nepal started marketing branded men's wear in the domestic market under the John Players brand name. Till date we have sold almost 1 lac pieces in Nepal and command a 5% share of the domestic readymade apparel market.
It is a matter of great pride that our product quality is World Class. The vision of redefining quality standards in the apparel industry and creating a proud "Made in Nepal" label inspires us to explore future growth opportunities.
Surya Nepal's own unit
Activities in this area could not be undertaken earlier on account of the socio-political and labour environment prevailing in the country due to which the entire garment industry in Nepal has been negatively impacted.
Keeping in mind the unfolding socio-political and economic scenario in the country, we feel that the time has come to invest further in the business so that Surya Nepal is geared towards meeting emerging growth opportunities in India and other markets abroad as well as the domestic market.
The plan to set up a new factory approved earlier by Surya Nepal's Board of Directors was communicated to Surya Nepal shareholders at the Annual General Meeting held last month by Mr. Anup Singh, Director & Chairman of the meeting.
The initial investment in the new factory will be nearly NRS 25 crores. The factory will be set up on land purchased earlier by Surya Nepal which is approximately 10 acres on Dharan Road in Biratnagar. MRB & Associates, Kathmandu are the Architects and Principal consultant on the Project and Dholaka Nirman Company Pvt. Ltd. are the contractors for the 1st stage. The construction work has commenced as of 15th January 2007. The facility will house machinery and World Class infrastructure to support manufacture of upto 7000 shirts and 1200 trousers per day in two shifts in the first phase. The total built up area will be 1,10,000 sq.ft. which includes factory building, warehouses, canteen, worker conveniences, office block and will be fully compliant with all Environment, Health and Safety requirements. The new factory will be fully operational by November 2007. Existing machines and work force in the leased premises will shift to the new location over a period of time.
The factory site will have the potential for future expansion to cater to increased volumes, and further investments can be done by Surya Nepal in a phased manner over the next few years keeping in mind growth of demand as well as the unfolding labour scenario. Given a positive and flexible labour outlook, Surya Nepal will be in a position to expand capacity to 4 times its current production, and over the next 5 to 7 years could potentially generate employment for nearly 2000 people in the Biratnagar area.
Harsh Madhav Dar, Managing Director, Surya Nepal Pvt. Ltd., + 977 1 4248260 corporate@snpl.com.np
Source: Surya Nepal Pvt. Ltd. (Business Wire India)