Tex-Ray Expands Vietnam Manufacturing Base to Focus on Functional Apparel
2014/10/23 | By Steve ChuangThe Taiwan-based Tex-Ray Industrial Co., a contract clothing manufacturer, is building a second factory at its manufacturing base in Vietnam as part of its strategy to expand its operations into functional apparel for outdoor activities.
The new factory was scheduled to begin operating in August or September this year with a monthly output of 40,000-50,000 dozens. Some of this output is functional clothing for globally prestigious brands as Colombia and The North Face.
Contract manufacturing of conventional garments, mostly women and children's clothing, currently contributes 60-70% of Tex-Ray's overall revenue, with functional fabrics accounting for the rest. With the new plant in production, the contribution of functional fabrics and clothing is expected to shoot up to 50%, giving a further boost to profits since functional products generate higher margins.
Tex-Ray made the decision to set up the new factory because its current capacity at manufacturing bases in Vietnam, Cambodia, China, Swaziland, and Mexico is almost fully dedicated to filling contract orders for conventional fashion clothing, with little left over for functional clothing.
In addition to the manufacturing of clothing, the company is also engaged in supplying various kinds of yarns and fabrics, marketing dyed yarns under its “ECO-Lor” brand, and developing fabrics in association with customers.
However, the potentially most lucrative business that Tex-Ray is developing at present is smart clothing that can monitor wearers' health status and physical conditions. Newly developed smart clothing has already been sent to customers for certification, and is likely to start contributing to profits next year.
Another step that Tex-Ray has taken toward sustainable development is the sale of a 20% stake in its equity to China's Jiangsu Yueda Group Co., a textile manufacturing, financial services, mining, and highway investment conglomerate. With this new partner as its biggest shareholder, the Taiwanese firm plans to strengthen its work on branding in the future.
During the first half of this year Tex-Ray posted revenues of NT$3.139 billion (US$104.63 million), net profits of NT$23 million (US$766,667), and EPS (earnings per share) of NT$0.13. (SC)
| Tex-Ray's Performance, 2011-H1 2014 | ||||
| Year
| 2011
| 2012
| 2013
| H1, 2014
|
| Revenue
| NT$7.467 Bn.
| NT$7.110 Bn.
| NT$7.239 Bn.
| NT$3.139 Bn.
|
| Net Profits
| NT$150 M.
| NT$179 M.
| NT$169 M.
| NT$23 M.
|
| EPS
| NT$0.91
| NT$1.06
| NT$1.00
| NT$0.13
|