GHCL shifts Dan River biz to Fabient
21
Apr '08
Apr '08
GHCL Ltd has announced that GHCL a $700 million multi product transnational Company after restructuring its business here in India is getting on with the restructuring of its USA home textiles business.
The Company is restructuring the business previously operated under Dan River, Best Textile and HW Baker under one Global B2B vehicle to pursue its vision of enhancing B2B operations.
It is creating focused verticals for its US business wherein all its institutional & hospitality businesses (supplies to hotel chains, Restaurants, Laundries, hospitals) would come under one vertical.
"As the Group is looking to enter into US retail business directly, this poses a conflict of interest with the existing retailers as the market category between Dan River and existing clients may remain the same.
In the current sluggish US retail market where retailers themselves are struggling to make margins at the expense of the supplier, such a strategy reduces the attractiveness for Dan River to maintain third party relationships. We are moving away from Dan River business of supplying to Retailers on CIF basis because of the huge costs involved.
Going forward we would be servicing the relationships through Fabient's, Vapi and global sourcing units via the FOB model, as is being presently done which will require a limited set up of about 15-20 people and a saving of $ 15 to 20 million dollars on an yearly basis", said Mr. Sanjay Dalmia Chairman GHCL.
The Company is restructuring the business previously operated under Dan River, Best Textile and HW Baker under one Global B2B vehicle to pursue its vision of enhancing B2B operations.
It is creating focused verticals for its US business wherein all its institutional & hospitality businesses (supplies to hotel chains, Restaurants, Laundries, hospitals) would come under one vertical.
"As the Group is looking to enter into US retail business directly, this poses a conflict of interest with the existing retailers as the market category between Dan River and existing clients may remain the same.
In the current sluggish US retail market where retailers themselves are struggling to make margins at the expense of the supplier, such a strategy reduces the attractiveness for Dan River to maintain third party relationships. We are moving away from Dan River business of supplying to Retailers on CIF basis because of the huge costs involved.
Going forward we would be servicing the relationships through Fabient's, Vapi and global sourcing units via the FOB model, as is being presently done which will require a limited set up of about 15-20 people and a saving of $ 15 to 20 million dollars on an yearly basis", said Mr. Sanjay Dalmia Chairman GHCL.
Must ReadView All
Apparel/Garments | On 13th Dec 2018
12 Asian garment firms to operate in Haiti by mid-2019
At least a dozen Asian garment manufacturing companies will start...
Textiles | On 13th Dec 2018
Pakistan evolving export-oriented policies: top official
Pakistan is evolving export-oriented policies and is committed to...
Textiles | On 13th Dec 2018
No-deal Brexit would drop output, UK firms caution: survey
British businesses expect a sharp drop in output if the United...
Interviews View All
Victor Chao
Esmetex
‘In future, clothing boundary lines will become increasingly blurred.’
Nishank Patel
Shri Dinesh Mills Limited
Broad range of fabrics will sell well this financial year
Sunil Rathore
Lacoste India
‘New vendor is welcome if he offers cost, quality and timely delivery’
Surat-based Sunrise Imports & Exports Co is a manufacturer and...
South African Fashion Week (SAFW) is a B2B marketing platform for fashion, ...
A specialist in manufacturing printing machines, <b>Wenzhou Changs</b>...
Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd
Hyderabad-based Broadcast Wearables has come up with the country's first...
Kerem Durdag
Biovation II LLC
Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...
Razvan Popescu
Directa Plus SpA
Directa Plus is one of the largest producers and suppliers worldwide of...
Rajesh Pratap Singh
Rajesh Pratap Singh
<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...
Anisha Chaudhari
Threads & Shirts
Threads & Shirts is a freshly-tailored concept providing men/women a...
Igor Chapurin
Chapurin
"Now we can see the Russian trend in international fashion. And Russian...
Leave your Comments
Recommended
Want to know what happened in the textile world this week? Watch now!
news category
Related Categories:
