"Our strategy is to double our production volume in Bangladesh within two years and produce 3,000,000 pieces there. We are already looking for a second site to expand our operations, "reveals Jean-Baptiste de Spéville, Chief Executive Officer of Floreal.
The group should inject Rs 50 million in the expansion project. For management, the attractiveness of Bangladesh lies not only in its low labor costs, but also due to the fact that this country is a meeting point for principals from various countries. "International buyers are likely to visit Bangladesh regularly because they have offices. Have a marketing platform in this country allow us to bring Floreal its potential customers, "said Jean-Baptiste de Spéville.
Floreal, which is specialized in the manufacture of sweaters cashmere, lambswool and merino invests Moreover, Rs 45 million in new knitting machines that should be delivered in January. This investment will enable the one hand, to increase its capacity and, secondly, to produce more in the premium segment. Moreover, if the group is 90% in the menswear, the objective of the next five years is to diversify its production should be distributed more equitably between menswear and ladieswear.
Growth in South Africa
For the fiscal year ended June 30, 2013, Floreal Knitwear conducted a performance below expectations. However, its financial situation has improved since last June, thanks to orders with more added value and a significant growth in South Africa, a market Floreal Knitwear develops and already represents 25% of its production.
The group also makes efforts to drill again in the U.S. market, he abandoned there about ten years. In the medium term, it hopes to sell about 10% of its products in the United States.