Shekhar Agarwal
Group Vice Chairman LNJ Bhilwara Group
Customer demand is changing regularly with more stringent quality norms.
With Fibre2Fashion Correspondent Cindrella Thawani, Shekhar Agarwal shares his views on government policies, new technologies as well as about product development in the textile sphere.
Synopsis:
Shekhar Agarwal is the Group Vice Chairman of LNJ Bhilwara Group. It is a USD 450 million industrial conglomerate and 70 percent is concentrated on textile wing.
Its textiles operations are diversified within spinning, weaving, knitting, processing and garments manufacturing in different fabrics. More than 50 percent of the manufactured goods are exported to more than 40 countries.
Export led Maral Overseas Ltd and BMD Pvt Ltd companies are the part of LNJ Bhilwara Group.
Presently, he is member of the National Committee on Textiles of the Confederation of Indian Industry (CII),
Formerly, he was President of Northern India Textile Mills Association as well as Chairman of Confederation of Indian Textile Industry (formerly ICMF).
Excerpts:
In Maral overseas, you manufacture various categories of garments. According to you, where does the market fare for it?
As a manufacturer in knitted garments, we focus more on the ladies embellished products (nearly 75 percent of our product mix) for discerning customers in Europe.
Our focus will continue to be on women’s’ garments and will continue to grow the kids wear business at the same time. Menswear is a low margin business and be a small part of our product profile.
Your pursuit of giving best; proves better pursuance for your group. What makes you to drive so far?
Intense competition in the market and ever changing customer demand has no room for complacency.
It is a constant challenge for product innovation, more efficient operations, cost reduction, with continuous efforts for value addition to maintain margins.
Also, changes and uncertainty in government policies are another issue that the industry has to grapple with, regularly. Human resource development to train young managers into leaders has been a major advantage in creating a team that performs.
Please explain about your R&D sector. How it is helpful further to scale up your production along with a value addition to your supply chain?
The first goal is to go up the value chain as much as possible. In three years, the ratio of yarn sales has reduced from 65 percent to less than 45 percent, with more business in fabrics and garments.
To stay ahead of competition, major emphasis on product development is being laid, with better blends of raw material, more sophisticated finishes to fabrics in different structures, and value addition to garments through designing.
Quality has been well-nurtured in Maral overseas whether it is yarn or in to fabric section. How far it is important to prioritize it, eventually further as well?
Quality has to be hallmark for any manufacturing unit, no matter what the product. Customer demand is changing regularly with more stringent quality norms.
Besides this, competition in the market has become intense, and the best value for money, for the customer, is consistent quality and service. Therefore, in Maral, we have always strived to produce the best possible quality, in line with market demand, and give good service to the customer. It has the greatest importance for us, even in times to come.
Speaking about BMD, how do you see, which latest technologies are swaying in to its territory? Moreover, what challenges do you envision?
New technologies will be driven by customer demand, according to the product they want. We have kept pace with that at BMD, and hence our market leadership.
Printing of fabrics would be an area to invest in, over the next few years to give a more sophisticated product and also reduce cost.
Customer demand on price reduction is perpetual; along with quick response on product development. This is the greatest challenge.
Further, there is more competition setting in with newer players entering the market, which is limited in volumes and hence customer service and reliability will be important.
Please apprise us with your forthcoming plans in context to the roots of your group heritage ‘textile sphere’.
Furthermore, adding capacity to our existing business, we are seriously looking at diversifying into high technology technical textiles. We have also embarked on renewable energy where major investments have been committed.
How far you are following the steps of Eco-foot-print quality towards your companies?
Energy conservation is of paramount important not only from a cost reduction point of view, but also in terms of eco friendliness.
Moreover, great emphasis on treatment of effluents to prevent discharge of toxic effluents in the environment is an important exercise that the companies have undertaken, apart from recycling water. This has given positive results.
Besides, in all our plants, we have planted more than 10,000 trees/plants to create a green culture and keep the environment pure.
On the product end, we have been using more and more organic cotton (more than 25 percent of our yarn production) for production of fabrics and garments for our international customers.
Published on: 27/06/2012
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
