Weft-knitted fabric maker Teejay Lanka PLC recently started manufacturing personal protection equipment (PPE) to cater to the growing demand in the domestic and global markets as key apparel brands have pushed back orders by several months amid the COVID-19 crisis. Some of its key retailers and new customers have placed orders for PPE items.
The company expects this demand to rise, chairman Bill Lam said.
In the fourth quarter ended on March 31, 2020, the company witnessed 21 per cent year-on-year (YoY) decline in revenue to Rs 7 billion while the net profit slipped by 30 per cent YoY to Rs 422 million amid customer requests to push back orders.
The company’s fabric for PPE was developed with SLINTEC and local academia. Some of its PPE items are awaiting requisite approvals, according to Sri Lankan media reports.
Teejay currently manufactures weft-knitted fabric, which is used mainly for men’s and women’s undergarments, lounge-ware and yoga pants, which are considered essentials and are in the comfort-wear segment. Therefore, the decline projected for the apparel industry may not fully affect the company.
Further, the company noted that the demand from existing strategic customers via supermarket chains, online outlets have seen significant growth in sales for its products amid a COVID-19 environment in the US and EU while its Asia-based customers continue with the required demand.
Lam emphasised that Teejay’s strength in the South Asian region would be an advantage in navigating through this storm.
