Teejay

Teejay is one of Sri Lanka's most sophisticated production facilities, manufacturing knitted fabrics for the intimate apparel and sportswear industries. Specialising in the manufacture of high quality, weft-knitted and dyed stretch fabrics, Teejay is a major supplier to apparel manufacturers throughout Asia and end-chain retailers. Amongst its largest clients are Victoria's Secret, Marks & Spencer and Intimissimi. Infrastructure at the 650,000 sq. ft facility in Avissawella enables a capacity to knit, dye and finish up to 2.5 million meters of fabric a month. Despite facing challenges in the form of rising cotton prices, high energy costs and loss of tariff concessions, Teejay has delivered strong financial results during the past five years, with net profit rising at a CAGR of 22% to US$5.0 mn in the year ended 31 March 2010. Mr. Ashroff Omar, Chief Executive Officer of Brandix Lanka and Director of Teejay, said that the Company was both honoured and humbled by the confidence and trust placed by investors in Teejay, and emphasized that the listing would provide Teejay with greater operational flexibility and a separate independent platform to raise funds from the capital markets to support its future growth aspirations. "Knitted fabric is the fastest growing segment of the Sri Lankan apparel export market, which is growing strongly even after the end of the GSP+ concessions in August 2010, and Teejay is the country's pre-eminent producer of value-added knitted fabric" stated Mr. Omar. The Hong Kong listed Pacific Textiles is a leading manufacturer of customized knitted fabric in the global textile industry, with a focus on complex, value-added fabrics. It has one of the largest textile manufacturing facilities in China, and provides integrated services of knitting, dyeing, printing and finishing, with an annual production capacity of approximately 87 million kg. PTH reported a 21% YoY increase in revenue for six months ended 30 September 2010 to HK$ 3.7 billion, with net profit attributable to shareholders rising by 17% YoY during the same period to HK$ 453 million. Brandix Lanka is the largest apparel exporter in Sri Lanka. It is engaged in developing, manufacturing and marketing end-to-end apparel solutions to global fashion superbrands such as Victoria's Secret, Gap, Next, Marks and Spencer, Liz Claiborne, Abercrombie and Fitch etc. The group specialises in casual bottoms, intimate and active wear, woven and knitted fabrics and a host of apparel industry accessories. The Brandix group has 25 plants islandwide, in addition to other facilities in the South Asian region, and strategically located international sourcing offices, and directly employs over 25,000 people in Sri Lanka. Teejay is being advised by investment bankers CT Capital (Pvt) Ltd and Acuity Partners (Private) Limited, who are also acting as managers to the capital raising and listing exercise.