BAM Knitting invests $3 million on modern plant

by Surekha Galagoda

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BAM Knitting (Pvt) Ltd opened its state of the art dyeing and knitting facility at the MAS Fabric Park in Thulhiriya yesterday.

With an initial investment of US$2-3 million, the investment will increase up to US$ 5 million in the next phase, said Chairman, BAM Holdings B. A. Mahipala.

This facility will provide employment to about 200 people. BAM Knitting produces different kinds of knitted collars, cuffs and hems according to stringent AQL standards.

The state of the art yarn dyeing division, laboratory and the dyeing machinery ensures a perfect colour every time it is needed. He said that they mainly concentrate on children's clothing and supply to world famous brands such as Next, Reebok, Osh Kosh and Hello Kitty.

Mahipala said that in the 80's the delivery time was six months but now it has been reduced to six weeks. Therefore, to cater to the buyers' requirements we need a very efficient supplier chain and this was the reason we set up factories for embroidery, printing and knitting.

Today it is a total solution that we provide to cater to the buyers' needs. In this supply chain the people factor play a crucial role. We need not just people but the right people in the organisation or else to fulfil the order we will have to airfreight the goods to reach the buyer on time.

In the event a company airfreights its goods for one month it will have to close down its operation as airfreight charges are so costly, he said.

Expressing his views on the GSP + he said that it has helped the industry immensely. The buyers will not move away from us but will pressurise us to give better prices. This will result in our profit margins reducing. Increasing the price of electricity will also further reduce our profit margins forcing some garment industries to close down.

He said that when the electricity charges are increased BAM Holdings will have to pay Rs. one million more as fixed KVA charges for a month on the garment factories alone which is a huge cost increase.

BAM Holdings started trading with the importation of vehicles to Sri Lanka in 1977. BAM Holdings Limited launched its first apparel factory - Colombo Garments Ltd in 1980. This facility was expanded in 1982, with the incorporation of Miami Exports (Pvt) Ltd.

In 1985, the company embarked upon the manufacture of Printed Plastic Film with the formation of Thermo Plastics (Pvt) Ltd. In 1988. Bastran Ltd and BAM Information Technologies (Pvt) Ltd are also in the group.

Earlier, the group was involved in cutting and polishing of diamonds, shrimp farming and manufacturing of latex gloves but now all these businesses are diversified and they concentrate on the core businesses apparel and related services.