K Ramachandran Pillai
CMD National Textile Corporation Ltd
Indian apparel market expected to reach value of INR 300,000 Crores, witnessing 12% growth by 2015.
Incorporated in April 1968, National Textile Corporation Limited (NTC) is a Central Public Sector Enterprise under the Ministry of Textiles for managing the affairs of sick textile undertakings, in the private sector, taken over by the Government.
Starting with 16 mills in 1968, 103 mills by 1972-73, in the year 1974 all these units were nationalized under the Sick Textile Undertakings (Nationalization) Act 1974. The number of units increased to 119 by 1995 and 1 new mill purchased set up on land purchased by NTC in SEZ area in Hassan (Karnataka).
These 120 mills were controlled by NTC(HC) Ltd with the help of 9 subsidiary Corporations, with an authorized capital of INR 10 Crores which was raised from time to time and which is now INR 5000 Crores and the paid up share capital of the corporation is INR 3062.16 Crores as on 31.03.2011
NTC is today a single company as against 10 companies in the past with the merge of 9 Subsidiaries with the Holding Company.
Mr. K. Ramachandran Pillai is currently the CMD of NTC. He has 30 years of industrial experience both in private and public sector companies, including HMT Ltd., Hindustan Latex Ltd; BRPL the subsidiary of Indian Oil Corporation. He is also the Chairman of 5 Joint Venture Companies of NTC with leading private sector textile players. To his credit, Pillai has numbers of accolades and awards. To name a few – ‘NIPM Ratna Award’, ‘Delhi Ratan Award-2007’,’Bhartiya Shiromani Puraskar’-Excellence Award with Gold Medal, and ‘The Great Son of the Soil’.
To make NTC a world class eco-friendly integrated textile company, catering primarily to the clothing needs of the nation, Mr. Pillai has been spearheading a total transformation of NTC involving financial restructuring; technology upgradation; and organizational delayering.
In Face2Face talk, divulging details on these vibrant plans, K R Pillai also shares about his outlook on the industry with Madhu Soni- Sr. Editor & Correspondent.
Mr. Pillai, welcome to the Face2Face talk. Let us start the conversation with an overview of the global textile and garment industry today?
If we analyze the global textile trade scenario, we find that the trade from developed countries like US, Europe and Japan is shifting to Asian countries and predominately captured by China. India’s trade in textiles is about 20% of China’s trade.
USA, Europe, Turkey and Mexico are major global importers of textiles. China is also importing textiles for conversion into value added products, whereas India is exporting textiles to countries like Vietnam, Bangladesh, Sri Lanka and losing its cream of value additions to these smaller countries.
The past year has been challenging to say the least but we are hopeful that we can find positives to take forward, including the better than expected holiday season, more new and innovative product offerings, industry streamlining that, to a large extent, has already resulted in a leaner and meaner and more productive industry.
Sir, we understand there are lots of happenings at NTC also, regarding its repositioning. Please provide us a gist on it.
Basically, we are going for an image makeover of the company. For the last 2-3years we have been focusing on the modernization of the mills, which is complete now. The next stage for the organization is to undergo a drastic change in the ‘outdated’ image of the company. In this direction we have revamped the logo. This new logo will be formally launched by the hon’ble Minister of Textiles, either on 17 or 20th December in a function in Delhi.
We also have planned dynamic phases as growth strategy in place. Firstly, we have to expand market reach through about 83 retail showrooms pan India. These showrooms will have a uniform and latest getup, whether it is about the logo, the interiors, infrastructural or the technology.
The second phase will see the expansion of the number of retail showrooms at least to be doubled by next year, and in immediate future we shall come up with new brands too.
Why has NTC decided to foray into the sector of the Branded Apparels?
Reason why we are to foray in branded apparel sector is to reposition NTC as a preferred clothier of Indian masses and a supplier of choice for yarn customers and also as the repository of Indian textiles legacy. NTC intends to widen its product portfolio and would do so by entering into the branded apparel sector.
The total Indian apparel market is valued at INR 170,000 Crores and is expected to reach a value of INR 300,000 Crores, thereby witnessing 12% growth by 2015. Hence, our endeavors to have some part of this pie in the near future and subsequently increase our share in the years to come.
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