Interview with Mukund Choudhary

Mukund Choudhary
Mukund Choudhary
MD
Spentex Industries Ltd
Spentex Industries Ltd

India has a share of almost 25 percent in the world markets when it comes to cotton yarns...
With Fibre2Fashion Correspondent Cindrella Thawani, Mukund Choudhary talks about the importance of overseas market for Indian yarn manufacturers. Synopsis: Spentex head quarters located at New Delhi. The company has five state of the art manufacturing facilities in India spread across Maharashtra and Madhya Pradesh, rolling out high quality 100 percent cotton and synthetic yarns. Mukund Choudhary serves as the Managing Director of Spentex Industries Ltd. Besides, his erstwhile titles include Vice-Chairman of Confederation of Indian Textile Industry from September 2011; President of Northern India Textile Mills Associations from 2010-2011. Moreover, he was nominated to the final panel for the young entrepreneur’s award in 2006 by Ernst and Young. Besides, he is graduated in Commerce from University of Delhi. Excerpts:

Inventory management and cash flows are the bottlenecks in this industry. According to you, what aid should be redeemed in this case?

The government policies towards the end of 2010, when exports were banned damaged the industry, which collectively made losses to the tune of INR 10,000 cr, owing to which has been under a lot of stress and pain. Further, industry has already made several representations to the government to allow restructuring of their debts due to the above mentioned reasons.

What kind of opportunities do you anticipate in overseas market?

We have an over capacity of about 25 percent, which needs to be sold overseas. Hence, overseas markets will always be significant for Indian yarn manufacturers. Moreover, overseas markets will remain range bound for the next six months after which we expect them to show improvement.

How do you take your concern towards sustainability? And, which green steps do you follow for it?

Several matters, which are beyond industry control, play a vital role. While internally, we take every possible measure to achieve sustainability such as control of expenses, cost of production, inventory and cash controls etc, but external factors play an important role such as exchange rates, market conditions.

Do you think that currently market is very impulsive and under stiff position? Besides, with this scenario probably overseas market can be helpful for company’s reserves?

Current markets are surely under stiff position. One of the main reasons is the state of economy of the developed world. The main converting/producing countries will always remain under pressure till such time. Overseas markets are thus very important for the Indian yarn manufacturer.

What kind of trends and state-of-affairs/conditions you evaluate for fabric and yarn in emerging markets?

It should be normal to better in the emerging markets and emerging markets are the main supplier / converter. Moreover, conditions will also depend on the state of economy of the developed world, which are the biggest consuming markets. And, emerging markets are not isolated from the developed economy.

This year budget was expectedly average for textile industry. How it will impact to the value of investors along with several policies of government?

There is already a very little interest with the investors in the textile companies, the budget this year was more of a dent to high expectations. Industry at large has been making many requests for the last several years which have gone unheard.

Please enlighten us with your upcoming plans and activities for your company.

We do not have any aggressive plans until 2013 and we will work on sustainability as well as reducing debt burden.

Please explain, why yarn should be exported from India? Moreover, where do you see the potential market for exports?

Yarns have to be exported from India as there is an overfilling of about 25 percent, which needs to be sold overseas. Besides, main markets will remain to be Bangladesh, China and South America. India has a share of almost 25 percent in the world markets when it comes to cotton yarns as well as remains to be a very important supplier to the world.
Published on: 22/08/2012

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.