Banswara Syntex on a consistent growth path
Mr Toshniwal, Chairman, Banswara Syntex
Vertically integrated fabric and garment business maker Banswara Syntex Limited has registered consistent performance on products and overall growth for this year despite of global economic downturn.
In an exclusive communication, Company Chairman R L Toshniwal informs, “The Company improved its performance in terms of profit by increasing the volume of value added business (fabric and garment), achieving better productivity as well as cost control on various inputs. In the international markets, the Company recorded large volume customer sales for fabrics. We are having a good order book position and accordingly, we expect that the performance of the next 2 quarters should continue to be satisfactory.”
In fact, Toshniwal should know better being an industry veteran and past leader of several textile bodies like Synthetic & Rayon Textiles Export Promotion Council (SRTEPC). Turning to future prospects, he says, “Our fabric and garment businesses are increasing and their joint was 51 percent during 2008-09, which is likely to go up to 65 percent during 2011-12. We forecast an 18 percent increase in growth in garment business during 2011-12, up from 8 percent in 2008-09.”
Banswara Syntex is placing thrust on new product development, in areas like fire retardant fabric where it plans to produce coated/laminated fabric used for manufacture of hand bags, travel bags, rain coats, outer wears, water repellant fabrics, anti fungus and anti bacterial processing, wash and wear fabrics etc.
Revealing investment plans he says, “The Company has taken up plan for expansion, modernization and diversification. The total capital cost of the project including margin money is Rs.60 Crores.”
The segment wise capital expenditure is envisaged as under:
(Rs in Lakhs)
Spinning Plant: 1868
Dyeing Plant: 629
Fabric Weaving Plant: 819
Jacquard Furnishing Fabric: 922
Fabric Processing Plant: 807
Ready-made Garment Unit: 955
Banswara Syntex boasts of possessing as their clients from among global retailers and brands like Marks & Spencer, J.C. Penny, GAAP, LEVI's-Dockers , Next, Perry Ellis, Target Corporation and Sears.
Toshinwal turning to future trends in textile apparel business says, “Brands and Retailers will lookout for vendors who will offer full package service and supply, which means integrated textile manufacturers offering garments ready to sell will be preferred. At Banswara Syntex, we are doing the same, and are increasing the apparel capacity gradually to meet the buyers' expectations as we are now fully integrated to offering products right from Yarns to Garments.”
Acknowledging that his company earns better margins in case of export sales and fabrics delivered to readymade garment makers in India, Toshiniwal expects Government to provide better Draw Back Rates for garments that will enable Indian garment manufacturers to compete with China, Vietnam and Bangladesh.
Fibre2fashion News Desk - India