Excerpt from the interview of Mr. Ajay Anand (MD), published in the D&B SME Awards 2019 publication.
What are your views on Indian Textile industry?
Textiles have gone through severe consolidation in India in this decade. Also fewer new players have entered the space. The Companies who have survived & with Infrastructure in place will greatly benefit in coming decade as India will strengthen further as a Textile hub especially for made ups and value-added products. Also regardless of the outcome of trade war between US-China, there has been a tectonic shift in mindset of companies in the west leading to sizable opportunity already moving out of China, this will benefit India and all incumbents in South East Asia.
What are the kind of Assets / Infrastructure does the Company has to achieve group growth over the next 3-5 years?
At group level, we have Assets block of over ` 3 billion which includes land, building, plant and achinery. In terms of overall capacity utilization, we are ~65% with a room to add more capacities with marginal increase in capex. The Company has incurred a capex of over ` 350 million in last 3 years predominantly for new products and progressive capex rather than brick and mortar. The current group Revenue is around ` 4.6 billion which we aim and endeavor to double within 3 years since all ingredients required to do so within the same product line, same business, same customers are in place now. This growth is expected to come with nominal capex of ` 300 million the similar period which would be adequately funded from internal accruals.
Source Credits: Dun & Bradstreet SME Awards 2019 Publication