Interview with Mr Mukund Choudhary

We cater to both domestic as well as international textile markets. Each market has its own dynamics and it depends on how well are prepared to serve your customers. Nevertheless, dollar-rupee fluctuations have impacted profitability of operations of all companies like us.

We serve many global customers spread across the continents. In today’s global village concept, we are there where customers exist as to draw a line of demarcation based on country or region specific market does not exist.

The global market for textile products is very promising. For instance, the world trade in textile and clothing has increased from USD 356 billion in 2000 to USD 530 billion in 2006 at a CAGR of 6.86%. It is widely expected to reach USD 700 billion by 2012 at a CAGR of 5.6%.

Major challenges to Indian textile players include protectionist policies of many foreign governments in the form of anti-dumping, anti-subsidy, countervailing duties, etc. also, intricate rules of origin and increasing number of preferential trade agreements could vitiate trading environment. The prospects of stiffer competition from other exporters must also be taken into account.

Our M&A strategy as mainstay of business growth is well known. The rapid changes in business landscape, the rising global opportunities and need to lead competition from the front have fuelled our endeavor for rapid growth through inorganic route. Although we have completed Brownfield projects at our units at Baramati and Solapur, but we are open to Greenfield projects also.

Our experience with Schoeller and IRTL acquisition has been an exemplification of business prudence. Schoeller posses a strong European brand name with penetration in the niche market while IRTL facilitated our foray in synthetic and blended yarn business. Putting together, our competitiveness has increased manifold.

Market for cotton yarn continues to be one of the largest and it is still growing. Moreover, Indian exports of man-made fibres have immense potential in international markets. We produce and market cotton and synthetic yarns in the ratio of 65:35 and enjoy significant share in both established and emerging markets.

Organic cotton market is fast growing and demands are increasing. We have also been putting thrust in this direction.

We have been involved in many social activities since we believe that an effective corporate social responsibility starts and ends with appropriate social performance of a company. We are associated with Shri Chiranjilal Choudhary Charitable Trust which has established a high school in village Mandasi, Distt. Jhunjhunu (Rajasthan) with the objective of educating children of poor villagers. Recently, government of Rajasthan has taken over the charge of the school. However, Shri Chiranjilal Choudhary Charitable Trust continues to provide furniture, school dress, books & note books, snacks, school fees (reimbursement), etc. for all children.

As a Company, we are also associated with schools in Baramati (Maharashtra) and Pithampur (Indore) which provides highly subsidized and quality education to the children of the wards. The school is a boon for students as the location itself is remotely situated.

We sincerely believe that social responsibility is a humane side of the companies and commitment from the management and employees’ ensures its success.