MALAYSIA'S largest integrated textile and garment company, Ramatex Bhd, is gearing to achieve RM1bil in annual turnover in its financial year (FY) ending Dec 31, 2004.
Executive director Albert Lim Poh Boon said although Ramatex's revenue for the FY2002 was RM659.53mil, compared with RM711.21mil in FY2001, the company was still confident of surpassing its target.
Ramatex, he said, had been receiving more orders as consumers had started purchasing again.
With the war in Iraq ended and the SARS outbreak no longer a threat, the worst is probably over. Recovery of the US economy and positive economic growth in the European Union will also boost demand for our textile and garment-related products, Lim told StarBiz.
He said the targeted turnover growth could be achieved, especially in view of the company's plans to increase its production capacity and acquire several overseas garment-making companies within a year from now.
He said the Batu Pahatbased company had identified a few medium-sized garment manufacturers in Indonesia, Cambodia and Africa that it wanted to buy and would allocate US$10mil for this purpose.
Lim said the move would further complement Ramatex's target to become a global entity within the next five years.
The company, he added, was preparing itself for the complete removal of quotas worldwide by 2005 under the Agreement of Textiles and Clothing (ATC).
With the abolishment of the quota system, buyers will go all over the world seeking manufacturers who could offer quality products at relatively low prices,'' he added.
Lim said Ramatex was in a good position to benefit from this as it could bank on the low operating costs of its Chinese and Namibian subsidiaries.
The company had set up centres for international procurement and product development at its Batu Pahat headquarters.