Manufacturing excellence is central to Teejay’s strategic approach: driving operational efficiency across all facilities, keeping pace with technological advancements, fostering opportunity through partnerships and collaboration, and achieving sustainability through innovation. Through continuous improvement, strategic investments in infrastructure, technology, we empower our employees and strengthen manufacturing operations. Ultimately, this generates exceptional value for our customers in our industry, builds trust with our stakeholders, and lays the foundation for the long-term success of our business.

Meeting our sustainability targets in manufacturing necessitates, decarbonising our operations and embracing the energy transition. Our strategies and performance in this area are detailed in the Environmental Stewardship Impact section on page Environment Stewardship.

Our industry-leading product and raw material innovations, key aspects of achieving manufacturing excellence, are described in the Innovation in Fabrics section on page Customer Centricity At Our Core. The Manufacturing Excellence section on page Manufacturing Excellence further discusses our efforts to align manufacturing and production processes with the evolving needs of customers and consumers within the industry.

Overview of Our Facilities

Facility	Production Capabilities	Daily Capacity	Other Details
Teejay Lanka	Weft knitting: cotton and cellulosic blends Manmade cellulosic modal Synthetics: nylon and polyester Jacquards	45 Tons	Listed on the Colombo Stock Exchange
Teejay Prints	Printing: discharge, pigment super soft, reactive, digital, disperse	20,000 metres	Wholly-owned subsidiary of Teejay Lanka PLC
Teejay India	Weft knitting: cotton and cellulosic blends Synthetics: nylon and polyester Fleece, lace and discharge Pigment super soft Reactive	55 Tons	Located in Adhistan Integrated Industrial Park, Visakhapatnam (Andhra Pradesh, India)
Nubian Threads	Weft Knitting: Cotton & cellulosic blends Man made Cellulosic modal Synthetic: nylon & polyester	1-3 Tons	Subsidiary of Teejay Mauritius

Driving Manufacturing Excellence

Leveraging Collaboration and Digital Transformation

Strategic collaborations and partnerships with technology leaders, innovators, and other key players in the fabric and apparel industry are essential to Teejay's pursuit of manufacturing excellence. We prioritise working with partners who bring complementary skills and technologies, enabling the integration of new advancements into our manufacturing processes and ensuring we remain competitive in a rapidly evolving industry.

This includes:

• Technology expansion: Forming partnerships with global industry experts to drive technological advancements.
• Expanding global network: Strategically pursuing opportunities to establish a presence closer to needle point hubs.

Teejay’s Group-wide ERP system provides a centralised digital platform for managing customer orders from development to production, significantly improving traceability and resulting in substantial efficiency gains for both our teams and our customers.

New Developments in 2024/25

Teejay has several key initiatives in the pipeline to improve our technological advantage, expand production capabilities, and align with global trends in textile innovation.

• Invested on Jacuqard machinery

Infrastructure Investments

Digital transformation and technological improvements have revolutionised our production and resource management processes, becoming a key part of our annual manufacturing investments. During the reporting year Teejay has invested in new knitting, finishing and dyeing machines

Improved Fabric Quality and Efficiency:

• Improved Surface Quality: Sanding machines were introduced for improved fabric surface quality, minimising defects.
• Precision Finishing: We invested in shearing machines to streamline finishing, ensuring precision and improving the overall quality of knitted fabrics, while minimising reprocessing.
• Superior Finishing: The introduction of calendaring equipment adds gloss and smoothness for a more appealing fabric finish and better resource use.
• Higher Quality Raw Materials: Fibre washing tanks were introduced to remove impurities, leading to improved fabric quality and less manufacturing waste.
• Sustainable Shrinkage Control: A steam-based continuous tumble dryer was added to our production line to provide precise fabric shrinkage control. Operating without additional water resources, it contributes to a more sustainable production cycle.

Enhanced Fleece Production:

• Expanding the fleece knitting capacity: to optimise the market demand
• Increased Brushing Capacity: Installation of advanced brushing machines has increased our capacity to 900,000 metres per month, supported by additional fleece attachments and cylinders.

Greater Automation and Turnaround:

• Intricate Design Capability: Automated jacquard machines were installed to increase efficiency in production of intricate designs, reducing manual intervention.
• Greater Efficiency at Final Production Stages: New finishing and detaching machines were brought in to accelerate turnaround times for items like collars and cuffs.

Adoption of automation allows employees to concentrate on more value-added tasks, resulting in a measurable increase in output per worker and reduced operational delays. Improvements in fabric processing also ensure a more efficient use of our raw materials, leading to cost savings.

At Teejay, all investment proposals undergo thorough evaluation by a cross-functional team. This analysis incorporates demand planning insights and aligns with the Group’s Long-Range Plan (LRP), focusing on long-term benefits and future-readiness. Additionally, we strategically allocate brands across facilities based on geographical advantages and technical capabilities, thereby optimising production for each customer.

Operational Efficiency

A key strategic imperative for enhancing operational efficiency at Teejay is the continuous improvement of our systems and processes, alongside an ongoing drive to modernise our manufacturing operations. This involves several key initiatives:

• Enhanced Shop-floor Automation: Internet of Things (IoT) devices have been installed across all knitting plant machines and utility points. This enables real-time data capture and performance tracking, allowing our engineering and production departments to optimise processes, minimise downtime, reduce costs, and improve overall efficiency.
• Data-Driven Insights: Microsoft Power BI and SAP Fiori are utilised to convert raw data into actionable insights. During 2024/25, SAP underwent upgrades, including tighter system controls, seamless integration with external platforms (such as vendor systems), and the deployment of SAP Fiori dashboards, many of which are now accessible on mobile devices for improved flexibility and real-time decision-making.
• Advanced Quality Control and Waste Management: Automated quality control systems, coupled with Artificial Intelligence (AI)-powered waste management solutions, enable early defect detection to reduce material waste and improve recycling efficiency.
• Automation of Routine Tasks: Utilisation of Robotic Process Automation (RPA) and Microsoft Power Automate provide greater control over our operations and production processes.

Our Manufacturing Targets for 2025/26

• Deliver ongoing business-driven system enhancements and change requests.
• Migrate to the latest SAP version for platform stability and scalability.
• Further enhance SAP Fiori applications to improve user experience and functionality.
• Expand IoT implementation and integrate suitable AI solutions to meet operational needs.
• Complete IoT rollout for Teejay India.
• Deploy SAP to our expanded locations.
• Extend RPA solutions across all functions and scale implementations to other group entities.