Japanese zipper company to expand business

Chandigarh Mar 16 (UNI) Japanese zipper major YKK India Pvt Ltd has decided to go in for an expansion of its existing manufacturing facilities at Haryana State Industrial Development Corporation (HSIDC) Growth Centre at Bawal in Rewari district.

Dislosing this here yesterday HSIDC Managing Director Rajeev Arora said the Corporation has alloted about 10 acres of land for this expansion project involving a capital cost of more than Rs 350 crore. He further informed that the decision of the company to opt in for expansion at Bawal is the result of a number of meetings held with the top management of the YKK Corporation with a high level business delegation led by the Chief Minister Bhupinder Singh hooda in Tokyo in December last year.

YKK India is a wholly owned subsidiary of YKK Corporation, Japan engaged in manufacturing zippers and slide fasteners in an integrated plant set up at Bawal in 1997. The company has since then expanded in phases and its production of zippers has reached 135.7 million pieces at the end of the last fiscal year.

The company acquired additonal land from HSIDC in 2001 to meet the requirement of the second and third phases of the expansion.

The proposed fourth phase of expansion will lead to more than double of the manufacturing capacity of zippers. The entire project cost would be financed through internal accruals and bank loans.

The major plant and machinery would be sourced from the parent company which is also manufacturing one of the best equipments in the world for the manufacturing of zippers and slide fasteners.

With the dismantling of the quota regime, there is a sudden surge in the exports of apparel from India with many in new global scale apparel manufacturing plants being set up in the country. This has generated additional demand for apparel accessories to meet the export production. The YKK decision for expansion on such a large scale has been taken to meet the increased demand from the domestic as well as export segments.

YKK India has already initiated a process of indigenisation of raw material. The company has already been procuring many items like paints and some of the machines from the local market instead of importing the same from Japan. Steps have also been initiated by the company towards vendor development.

At optimum capacity utilisation, the project is likely to provide direct employment for more than 300 persons. The existing work force in the company comprises of 90 per cent employees from the state of Haryana which includes 25 per cent female workers. UNI HS ARB SP1003