Chairman and Managing Director Loyal Textiles Mills
Which are the new export markets that are proving to be lucrative? How have you dealt with the prolonged economic recession?
The domestic market is very bad, as there is no disposable income in the hands of people. Exports cannot increase rapidly unless we reduce raw material prices which are being kept artificially high, through uncalled-for protection and with relatively higher tariff walls.
The commerce ministry has to start acting. It has allowed crony capitalism to continue for too long. Jobs need to be created. More exports need to happen before domestic sector can pick up. People need better-paying jobs and lower inflation to have disposable income to create domestic demand.
What has been your group turnover? What percentage is contributed by exports and garmenting?
Rs 500 crore overall, with garments accounting for Rs 90 crore.
What is the target set for next fiscal?
The same, except for increasing the garment turnover to Rs 150 crore. We are not adding capacity, as the commerce ministry needs to act before investments in textiles can become profitable again.
India is being described as the new land of opportunities. Do you have any plans to step into the domestic retail market?
We may launch soon our own branded corporate and safetywear garments.
What role does R&D play in your group? What percentage of budget is allocated towards that?
R&D plays an important role in increasing our garmenting turnover and overall profit. Our R&D is mainly in the area of technical textiles and safety garments.
Technical textiles are emerging as a major niche. Is Loyal Textiles planning a step here?
The organic textiles percentage is small and stays at the same level. The Better Cotton Initiative (BCI) percentage, however, is rapidly increasing and technical textiles will get doubled next year.
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