OCM is geared to achieve minimum 50% growth in FY 21-22
OCM, one of India’s largest fabric manufacturers, began its journey as a manufacturer in the textile field in 1924. MD Vikram Mahaldar provides an insight into the major achievements of the company in the past 3 years, the focus areas and revenue expectations for the current fiscal with the pandemic in the backdrop.
How has OCM fared as a company in the last 3 years? Which are the major highlights?
OCM has grown leaps and bounds in the past 3 years across the value chain through product diversification, improving efficiency, strengthening supply chain etc. The major highlights have been:
• Product diversification: From being known as a heritage brand with prowess in tweed and flannel, we have evolved to increase our offerings for PW suitings and gain more market share in this niche premium suiting category. We also are the #1 trusted acrylic shirting brand in the country and have a plethora of poly-viscose (PV) fabrics for our mass premium customers. Additionally, there’s a big range of exotic cotton suitings and select cotton shirtings as well.
• Strategic marketing activities: From having Amitabh Bachchan come onboard as the ambassador for Grado in 2018 to a series of television commercial (TVCs) rolled out in key periods to retail kits distributed season-on-season to organising grand conferences and events to a robust presence for hoardings and in-shop to ramping up social presence, we’ve come a long way to cover all media effectively.
• Channel expansion: We focused on key markets and made our brand stronger there and increased our presence in new markets too.
• Technological upgradations: Investment in machinery has been a top priority to deliver a better- quality product, more efficiently.
How has the pandemic impacted OCM? What hardships did you face during the second wave and how different were they from the first wave?
The lockdown was a challenging period for all industries, and textiles/retail was hit too.
The first wave took us by surprise, we quickly got to work and were the first to bring to market an anti-viral fabric during the peak of lockdown. Following strict government protocol, we equipped ourselves and worked hard on product, innovation and upkeep of factory and were the first to reach the market with the latest Festive/Winter 21 Collection.
When the second wave hit, we were better prepared. There were no challenges from a manufacturing stand point but customer demand came to a standstill during April-June with sentiment totally skewed to essentials and healthcare alone. Thereafter with the vaccination drives, retail started opening up, orders started coming in and we’re now on an upswing.
How did you tide over the hardships--in terms of business, orders received, staff etc?
Over the past few years, FY18-19 and FY19-20 were great years for us in terms of business. With the pandemic hitting FY 20-21 early, things slowed down but we still managed to come reasonably close to projected figures because of our niche product.
In terms of morale, everyone – internal stakeholders (employees) and external stakeholders (our channel partners) were optimistic and resilient. We stood united in making big strides every day for a brighter tomorrow – be it through employee engagement initiatives, vaccination drives, helping our local communities, product innovation, upkeep of the factory, production planning and so on. We have set various benchmarks for scaling up internal efficiencies within the company which will bear fruit in the long run.
What is the market standing of OCM in the Indian textile industry as on date? How does it maintain its competitive edge over its competitors?
OCM has been intrinsic to the Indian textile industry since 1924, and we’re gearing up to celebrate our centennial soon. We are the second largest worsted fabric brand in the country.
We maintain our competitive edge through our precision to deliver quality product, having an efficient supply chain and timely delivery schedules, a plethora of designs and colours each season and through product innovation.
We produce over 5000 stock-keeping unit (SKUs) every season and are known for our range of colours, and loosely in the trade OCM is called ‘Original Colour Masters!’
Another important area for us to stand out are the marketing initiatives we undertake. For example, this year we supported the Indian contingent at the Paralympics and were thrilled for each of the 19 medals they came home with.
Which are the major brands under your umbrella today?
As a company, we have targeted customer segments and strive to cater to each one of them. Some of the well-known brands we house are Ferrara, Moda Biella, OCM, Grado by OCM and Siena. Each of these brands have become leading players in their particular category – from luxury to premium alternatives. Through this broad spectrum of fabrics and brands, we are servicing the entire value chain of the textile industry.
Fashion executives/brands are increasingly being urged to place sustainability at the core of their business models post Covid-19. How does OCM fit into the plan?
At OCM, we deal with natural fibres which are the core of sustainability. We endeavour to use the best raw material and dyes.
Our 37-acre complex in the heart of Amritsar is filled with greenery and we are constantly trying to plant more trees. In fact, one of the oldest trees on our campus is a beautiful Banyan tree that dates back over a century. Also, our effluent treatment plant helps us discharge residues safely – well within the norms laid down by the government.
Going forward, we are geared to find best ways to reduce carbon footprint further through innovative ways.
Post pandemic, how do you visualise the luxury landscape to change? What are the key factors set to drive this space?
Consumer sentiment for luxury products dwindled during the pandemic but now with business resuming, it’s on the rise again. Also, now with better disposable incomes, people are seeking to express themselves better after the curbs are eased out. With opening up of these new social and business engagements, customers are investing in key pieces to project success, because of which I think luxury markets will bounce back.
Which are your major consumer markets in India and abroad?
Our mainstay markets are the entire northern belt including Punjab, Delhi, Jammu & Kashmir, Uttar Pradesh and Bihar. The other states that include a majority part of our domestic pie are Andhra Pradesh, Telangana, Karnataka and Maharashtra.
Globally, we have a robust presence in Nepal, Middle East, Far East, Russia and select European countries, besides having a fair presence in other geographies.
What percentage of your business is for the domestic and the international sector respectively?
More than 80 per cent of our business is domestic. However, our export base is also growing steadily and we’re anticipating the latter to occupy a larger percentage of the pie in the next fiscal year.
What are some of the innovative approaches you plan to implement or already might be implementing to stay relevant in current times?
At OCM, we believe that learning should never stop.
We always have cross-functional teams working on new projects.
At present, our focus is on digitisation of product, network expansion strategies and product innovation and extension amongst others. Further, we are constantly seeking ways to further improve our internal efficiencies to deliver enhanced product and to upskill employees to take more responsibilities. Also, to have more focus on ERP for better control on lead times, WIP cycles, reduce cost and deliver a better overall product.
During the first wave, we were quick to act and launched a range of anti-viral fabrics and even made very durable masks for retail through our fabrics. In addition, we organised virtual conferences encouraging our associates during the lockdown and even tips on sanitisation, running safe shops and how to improve customer footfalls. We are looking at continuous engagement with our trade partners to handhold them through these difficult times, understand their pain points in the post-pandemic world and deliver products and services that satisfy those needs.
What kind of capacity expansion is planned for the future? Any plans to launch a new brand?
From a technology point of view, we have done expansions in both spinning and weaving units to produce better yarns and better fabrics. The focus is to deliver better quality, which is internationally acceptable, efficient.
A few new things are in the pipeline such as a few more brand launches / tie-ups which we will be unveiling in some time.
What is the retail presence of the company in the domestic market in terms of number off MBOs, EBOs, franchises etc?
While we have limited EBOs, our retail presence is very strong as we primarily operate on a direct-to-retail model with over 1500 MBOs serviced directly and 10000 more through our wholesale channel.
Revenue expectations for the current fiscal?
OCM is geared to achieve a minimum 50 per cent growth in FY 21-22, further expand our market share substantially, and solidify our brand presence.
