Home / Knowledge / News / Textiles / Maharaja Shree Umaid Mills does exceptional well in textile segment
Maharaja Shree Umaid Mills does exceptional well in textile segment
19
Feb '09
As usual, January month ended in the backdrop of companies' declaring their financial results. However, this time situation was altogether different for being studded with multiplicity of adverse factors afflicting the industry in general. For ended fiscal year 2007-08, especially, the last two quarters have been quite tough from the operational performance point of view due to mountain like challenge of economy downturn that started to show its impacts from past six months. The overall input materials' costs rising from 58.51% to 63.74%; interest costs climbing from 1.95% to 3.22% ; and power and fuel costs pushed up from 15.95% to 16.44%, have together substantially bloated the pre-depreciation and pre-tax profits.

Amidst this scenario, what all key strategies have helped Maharaja Shree Umaid Mills Ltd to post better results? To know this, we approached company's Whole Time Director and CFO, Mr Govind Sharda with set of few questions on their quarter three result. The excerpts are;

F2F: Can we begin with your company's present capacities?
Mr Govind Sharda: We have 109344 spindles, 1896 rotors (for open end yarn) and 460 looms whereas another 35-50 looms are under commissioning. We are capable of manufacturing synthetic (polyester, viscose and blended) yarn, cotton (carded and combed) yarn. We manufacture fabrics that are made of cotton or synthetic yarn. Most of the yarns required for fabric construction are produced internally.

F2F: This year third quarter net sales have rose by around 20% to the same quarter last year. What all would you describe as determinants behind?
Mr Govind Sharda: During the year, the Company changed its product mix to yield larger quantities of output during the 'peak' witnessed during the period of July-September for the yarn. Higher production level with the coarser counts yielded superior profits. The existing looms were subjected to retrofitting leading to wider width fabric production shrinkage at the cost of single width whereby the production level and margins enhanced. Apart from it, we also commenced outsourcing as the first stage of experiencing the products before commercial in-house manufacturing. The success of outsourced quality establishment has enhanced the enthusiasm and now, the Company is going for setting up its own manufacturing line.

F2F: Which all Policies/Sops by govt were availed of?
Mr Govind Sharda: Textile upgradation fund scheme (TUFs) is the only benefit that we are availing apart from minor benefits available under the Rajasthan Investment Promotion Scheme (RIPs) wherein the electricity duty differential is partially reimbursed.

F2F: What is your order backlog?
Mr Govind Sharda: In case of yarn, we have order book tied (normally) for next 15 days and in case of fabrics, we have order book for next 2 months. The normal waiting period for fabrics was 4-5 months till December that has now come down to 3-4 months for theretailer in view of reduced demand by the end consumer. Though, the Company considers the reduced waiting time as more of psychological phenomenon that is not here to stay, yet, in order to avoid any such potential trend, it is already in the process of creating new product range through in-house manufacturing that would provide it adequate flexibility in case of poor order book. All such products have already been test marketed through outsourcing during last 6-8 months.


Must ReadView All

APTMA decries duties on cotton imports in Pakistan

Textiles | On 17th Jul 2018

APTMA decries duties on cotton imports in Pakistan

The All Pakistan Textile Mills Association has termed the...

Luis Quijano

Textiles | On 17th Jul 2018

US varsity student cultivates bacterial cellulose in lab

Luis Quijano, a student at the Liberty University in Lynchburg,...

SAARC Development Fund plans cross-border e-comm platform

Apparel/Garments | On 17th Jul 2018

SAARC Development Fund plans cross-border e-comm platform

SAARC Development Fund (SDF), the cross-border umbrella financing...

Interviews View All

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search