Faze Three Limited was awarded the Dun and Bradstreet - RBL Bank SME Business Excellence Awards 2019 in Mid Corporate Segment - Textiles.

 Excerpt from the interview of Mr. Ajay Anand (MD), published in the D&B SME Awards 2019 publication.

auto fabrics manufacturers in India
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.

What has been the success mantra of Faze Three group?

Continuous Innovation, Absolute Commitment to Quality, Reliability (timely deliveries), Long serving Customer Relationships and Global Standard Infrastructure are at the heart of success at the group. We have always invested into infrastructure and products ahead of time which has put the Company as preferred partner supplier from India. The Customer is at the heart of every decision at the Company, we visualize the Retail of our products in our customer stores for the Home Textiles.

Under Technical Textiles, we focus on performance factors and other technical factors. Another critical aspect is the cost competitiveness, at Faze Three group we have never engaged in pricing war / undercutting to gain market share over competitors which leads to overall loss for all suppliers in the eco system, instead have made efforts to educate customers on the costs and demonstrate value of offerings.

Also we have a strong inclination to only work with AAA rated customers / global companies owing to their appreciation for Innovation and Quality. The Home textiles Business is 90% Exports and for Technical Textiles the sale is 80% Domestic which provides a good hedge at the group level.

home textile manufacturer

Also, as a policy we try and ensure that single customer exposure is below 15% of Total Revenue and on the raw material side our dependence on imports is almost zero. On the financial side, the Company invests for long term from internal accruals therefore Company’s repayable Debt is NIL over last 2 years now with overall debt/equity ratio of ~0.3. Our Management team and key people are passionate and the Company promotes younger people to take challenging roles.

Source Credits: Dun & Bradstreet SME Awards 2019 Publication

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