Local textile and fabric maker BSL Ltd (formerly Bhilwara Synthetics Ltd) is looking to increase sales to Rs 700 crore by FY24 as it sees consolidation in export markets and greater presence here.
A foray into cotton spinning on the back of a Rs 70 crore capex, an overhaul of its operations in India and the launch of branded offers in the furniture space are expected to be among the main drivers.
The company has been making plans to rework its operations in India since 2020. However, these have been put on hold, with the pandemic causing key markets to shut down.
While Covid-19 has slowed down some export markets, the ‘risk deduction’ has helped reduce the impact on the company, which is present in more than 60 countries in categories such as costumes and home furnishings .
Almost 70 percent of its revenue continues to come from exports, in segments such as costumes and home furnishings, in West Asia, Latin America and European markets.
Furniture (exports), about a third of its turnover, experienced good growth, mainly thanks to supplies from IKEA, which accounts for 15-20% of its turnover.
According to Managing Director Nivedan Churiwal, “container availability” and “build-up on the high seas” continue to put pressure on the export front.
“However, we are tapping into new markets and are considering branded furniture offerings as an extension,” he said. Activity area.
With the opening of markets globally and in India, sales from July to September are expected to be better in all regions and improve quarter over quarter.
“I think we can exponentially increase turnover by fiscal year 24 to around Rs 700 crore, with a reopening of export markets and an overhaul of Indian operations,” Churiwal added.
Reorganization of operations in India
Indian operations are reorganized with teams relocated to target markets. The company’s unstitched fabric portfolio is being pushed into Category A, B and C cities; targeting couture stores and high-end tailor-made players. Brand extensions are happening with the launch of premium brands direct to retailers.
BSL has also finalized an investment of Rs 70 crore – which will be financed by internal provisions and bank loans – for the establishment of a cotton mill at its existing facilities in Bhilwara, Rajasthan.
Plant orders have been placed and a new line is expected to be commissioned by August-September 2022.
Plans are also underway to launch own brand furniture offerings in competition with the main existing brands. Gradual launches could take place after September of this year, with Pan-Indian launches expected around April 2022.
“The spinning will give us an advantage in the domestic and international markets and the boost in the domestic and furniture business in India and abroad,” he said.