Banswara Syntex Ltd is a totally integrated textile company with facilities for spinning, weaving, dying, finishing and garmenting. Established in the year 1978 by Mr R L Toshniwal, the Chairman & MD, Banswara Syntex Ltd, has grown from strength to strength, since its foundation. The company now boasts of being one of the few completely vertical textile companies in India that exports to 52 countries and embarks USD$80 million sale of which USD$40 million is from exports alone.
Born on 22, November, 1933, Mr R L Toshniwal is graduated in Textile Technology from VJTI Bombay, in 1954. He has done his Masters in Textiles from Leeds University, UK, in 1957.
Before setting up his own business- the Banswara Group, Mr Toshniwal has worked as Chief Executive and as the Director for OCM India Ltd for five years. He has also been Chief Executive for Aditya Mills Ltd for nine years. His professional profile includes sound experience as a Production Manager in Birla Cotton Mills Ltd and in Sutlej Cotton Mills Ltd, where he was responsible for setting up projects at Bhawanimandi & Kathua.
For six years, Mr Toshniwal has successfully chaired The Synthetic & Rayon Textile Export Promotion Council (SRTEPC). He has been President of Rajasthan Textile Mills Association. He has also held the post of President in Indian Spinners Association (ISA) for ten years. He is the Committee Member of Federation of Indian Export Organization (FIEO), and for Confederation of Indian Textile Industry (CITI) which was formerly known as Indian Cotton Mills Federation (ICMF). He is also associated with a number of charitable institutions. At present, he is also representing Spinning Industry as a Member on various Committees of Government of India, as well as a Member of Board of Trade appointed by Government of India.
In an interview with Face2Face team, Mr Toshniwal presents his lookout on the issues discussed, and also shares the strategies to excellent exports performance.
Can we start with a brief overview of your company, a little bit of history and also about your core activities?
"Banswara Syntex Ltd was started in 1977 by Mr R L Toshniwal as a JV with Rajasthan State Industrial Development and Investment Corporation Limited (RIICO). It started spinning activities with modest capacity of 12500 spindles. Since then, the company has carried out several expansions in spinning divisions to reach a level of 91,952 spindles, including 12,096 spindles for cotton yarn spinning. Additionally, the company installed 576 Airjet spindles and 143 shuttleless looms as on 31st March 2006. After that further expansion has taken place. Banswara Syntex Ltd- the vertically integrated textile company manufacturesn man-made, synthetic, blended & cotton yarn, all types of suitings and trouser fabrics. It also has a readymade garments facility with an installed capacity to produce 1,25,000 trousers at Daman. BSL is producing specially dyed yarns and value added fabrics resulting in less competition from the low cost mass producers. We have our own designers and can produce design based fabric in a very short time. We have been winning export awards for cloth exports from The Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) for the last five years in a row."
Indian textile industry is said to be on a threshold of a major image changeover. How true is this?
"The textile industry is in the process of investing nearly Rs60bn on account of TUFS. The low interest rate and long repayment offered under TUFS has made investment in textile industry feasible and therefore, it is getting into a position where it can stand for globalization and generate export market for textile products. The current share of the industry is only 3 percent of the world market and it is expected to touch 5 percent in the next 3 years by 2010. The new trend is being witnessed by establishment of garment industry as well as huge production of wide width cloth. Last year, the Indian Cotton manufacturing capacity has reached to a record level of 270 lakhs bales, and this in turn is enhancing the production of yarn. The surplus manufacturing of yarn has gone into wide width cloth production. There has been a set back in synthetic textile during the last two years, but since last six months this segment also has shown some positive signs which is mainly due to the passing on the price hikes in the intercontinental scenario. The industry as a whole has begun to prosper at the end of the quota regime. Now, the world market is systematically improving on account of scoring of duties. The only way to meet this competition is to minimize the cost and that is possible by adding to the unit size. However, to stand upbeat to the world competition, the industry size needs to be put up to such levels."
How does Banswara exemplify the motto- “right color, the right blend, the right weave, the right fabric or the right fit”
"Banswara Syntex has total vertical integration from yarn to garment diversified production capability to handle all types of fibres viz. Cotton, Synthetic Rayon and Wool with adequate fibre dyeing facility. We have well established network in local and exports market and have strong innovative product development culture for yarn and fabric. We are leader in domestic fancy yarn and Lycra-based fabric, value-added fabric and other specialty fabric. We have team of experienced and dedicated technocrats and professionals having experience of over two decades. We are having flexible minimum quantities and customized response to customer needs. Our major growth plans for more vertical operations designed to increase fabric and garment sales to large size retail chains."
What kind of diversification or expansions has Banswara Syntex undertaken so far to keep global competition at bay?
"The company has undertaken expansion plan in two phases. First phase is expansion cum modernisation of Rs102.50 crores which include expansion in all sectors viz. spinning (18000 spindles), weaving (16 looms), processing and garments (50,000 trousers at Daman). This plan also includes installation of coal base power plant of 18 MW. Second phase is of Rs118 crores which includes spinning (40000 spindles), weaving (24 looms), furnishing weaving (24 looms), processing and garments (125000 trousers & 30000 jackets) at Surat- SEZ. These two expansions cum modernization scheme will help the company to upbeat competition in world market. First phase is almost on completion stage. Some of the machinery has already started commercial production and some of them are under implementation. Power plant will start to generate power in the month of April, 2007 which will help the company to reduce the power cost by approximately Rs1.75 per unit and it will produce around 3,50,000 units a day. We will consume the generated power ourselves."
Which particular markets are you aiming for in the near future?
BSL exports its products to more than 50 countries including US, UK, Canada, Spain, Germany, Italy, France, Philippines, Turkey, and GCC countries. And now, we are looking for new markets in Latin America and South Africa.
What are your views on the retail business opportunities prevailing in India?
Retail business is booming sector in India. All big business houses like Tata, Birla and Reliance have entered in retail sector. No doubt this sector is having good scope in India as it is baby in business sector. Now mentality of people has changed, they are finding a place where they can fulfill their all requirements at a single stop. It can be possible with this retail business only.
What special efforts has your company undertaken to ensure that it return with Excellent Export Performance, year after year?
The company is expanding its production capacity very slowly but in tune with demand of the product. We have not expanded the production in big way at a time but doing it in a strategic manner so we may be able to sell our products and save the cost also. Our target is to grow the business at the rate 20 percent to 25 percent per year with expansion and better products.
Can you talk about the technology that your company has adopted at your various units spread across India?
Research and Development in textiles means production of new yarn and new design. On this road map, Banswara Syntex is well thought-out today as a leader. Polyester viscose (PV) yarn segment has been increasing the exports for the last 5 years and for the exports of polyester viscose fabrics. We are having almost latest machinery in our plants and having good technical staff strength.