The amalgamation, which was announced on Monday, brings together Phoenix Ventures and Jewelknit under the new name Brandix Lanka Ltd.
Speaking at a press conference, chairman Ken Balendra said that the group’s most significant advantage is that it is fully backwardly integrated, not only manufacturing garments but providing designs and raw materials like textiles and buttons as well.
He said,"Through this new reorganisation, the Brandix group is fully geared to face a quota-free environment.”
The abolition of quotas and a preferential trade agreement with the US at the end of 2004 will leave the island's main export earners vulnerable to stiff competition from China and Bangladesh.
But by integrating its services and restructuring to be more competitive, Brandix plans to expand its existing production from Sri Lanka, the Maldives and Madagascar to India, China and possibly Mexico. It hopes this will enable it to double its 25 billion rupee ($258.6 million) annual turnover by 2007.
The Brandix holding company will be divided into three sectors, focusing on apparel, textiles and investments. -Agencies.
August 26, 2003