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Daya JV Samson for apparel operation

May '07
One of the few garment manufacturers in Ampara district on Sri Lanka's east coast, Daya Group of companies enters into an agreement with D Samson Industries (DSI) a famous footwear manufacturer in the country.

The joint venture is expected to make cost efficiencies for both companies and possibly provide a wider range of product solutions.

Daya Group is also expanding its apparel operations by joining hands with a state owned Vietnamese company in July this year.

A key consideration for the venture is to capitalize on cheaper labor available in Vietnam explains Group Chairman Daya Gamage.

With two factories and 3500 employees the company finds it difficult to maintain employee retention according to Group Director Kingsley Benjamin who says, the garment industries labor shortage is mainly because garment factories are situated too far from their homes and they leave after getting married due to family obligations.

Therefore, the company is now planning to build smaller production units closer to the homes of potential employees.

The apparel sector of the group, which was set up in 1992, has been a key contributor to its overall success and plans include expanding up to 50 sewing lines within the next two months and up to 65 lines by December 2007.

The factories now produce 400,000 pieces per month with a ninety-day lead-time and hope the expansion will increase that amount to 1 million pieces per month.

Fibre2fashion News Desk - Sri Lanka

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