New Brand Launch, Capacity Expansion And Enhanced Product Mix To Help Increase Revenues

The production capacity of the company has increased; by what per cent do you expect your revenue to rise by FY17?

We are increasing our production capacity from 68 million mtrs to 90 million mtrs by this year end. It will be functional from the 1st quarter of 2017. On a larger base of revenues we accept to grow by 10-15 % by FY-17.

The company is in an expansion phase, therefore by what size is the company expecting to expand by the end of 2016? Also any comments on domestic market launch?

We are launching our brand in the domestic market by the name of BOUTIQUE LIVING. It will be an aspiring brand and will be positioned between mid to high segment. There is space existing for a good brand in home textiles in the Indian domestic market. Therefore we are quite optimistic that our brand will fill this space and will provide Indian consumers a good value for their money. We expect that our expansions in capacities, domestic brand launch,enhanced product mix and expanding our global reach & customer base will all help us in achieving higher revenues in the coming future.

What will be the total capital expenditure to the company (for expansion) and how well the company expects to spend it?

Our company has announced CAPEX in 2015 in two phases. The outlay for Phase 1 is Rs.175 crores, which is being implemented during this year and will be completed by year end. This capex includes a modern biological ETP Plant; an automated cut and sew department with utilities & warehousing; and a processing, dyeing & finishing capacity increased from 68 millions mtr to 90 million mtr. The Phase 2 which is with a capex of 300 crores is a green field project, which we would establish in the state of Maharashtra, and are in the process of identifying the land. This will include automisation of spinning; enhancement of weaving capacity with looms for special fabrics, by 20 million mtrs; utility & warehousing; and cut & sew machines is new capacity addition. The second phase will be completed by year 2018. The total capex of 475 crores will be funded through debt to the extent of Rs.225 crores; and the balance Rs.250 crores through internal accruals.

There should be trade pacts with countries where we can grow business in the long term. Efforts should also be directed towards emphasising on increasing overall productivity.

We have expanded our product mix horizontally by adding fashion bedding, utility bedding, & institutional bedding to our existing business of sheet sets. Thus we are now providing a complete solution in the bed linen segment. In India we compete with companies like Welspun, Himatsingka, GHCL & others.

The government has allocated 6000 crores package to boost the sector. What should be the further reforms the centre must implement to push the textile sector which gives employment to more than 45 million people?

Recently the government announced support only to the apparel sector and not to the made-up sector to which we belong. We have made appropriate representation through our council TEXPROCIL to the government to provide similar treatment to made-up sector, as it involves the same process flow towards making them. We expect the government to take positive steps by including us in the textile package which will be shortly announced. As far as further reforms are concerned our government should make Technology Up-Gradation Fund (TUF) as per earlier policies, provide interest subvention, tax breaks for exports and higher duty drawback for integrated units, thus helping the sector to grow in exports as well as the domestic market.

Availability of good quality cotton at competitive prices; forex stability; and FTA with Europe & other BRICS countries, are some of the challenges in the textile sectors

Availability of good quality cotton at competitive prices; forex stability; and FTA with Europe & other BRICS countries, are some of the challenges in the textile sectors.

The major competition to the Indian Textile industry comes from Bangladesh, Vietnam, and China? Being optimistic, can India beat them in near future?

A lot needs to be done in the textile sector to create an environment for investment into integrated plants of mid to large sizes, This will create competitiveness- jobs as well as conditions to deliver high value to the global retailers. There should be trade pacts with countries where we can grow business in the long term. Efforts should also be directed towards emphasising on increasing overall productivity. Rationalisation of duty should be brought about in man-made fibre area across all the 7 fibres. Thus creating downstream products at a competitive cost.