Dabashish Poddar, CEO - Birla Cotsyn (India) Ltd who joins from Donear Industries Ltd (Donear Suitings/ Shirtings), completes Birla Cotsyn’s new team which aims to take the company to the next stage of its growth cycle. Debashis brings 18 years of experience in designing/styling, product development and factory co-ordination from yarn to finished products.
Birla Cotsyn started its operation in 1932 as a flagship of the Yash Birla Group, one of the largest industrial conglomerates in India. The Sprawling unit is located at Khamgaon (M.S) in the industrial belt of Central India. Birla Cotsyn (India) Limited is having Synthetic Blended Ring Spun Yarn manufacturing facility with state of Art machineries at Khamgaon. The company has sales network in India and abroad for Grey and Dyed Solid Griddles, Fancy, Industrial Knitting and Sewing Ring Spun Yarns in various blends and count range from NE 8s to 60s.
Speaking with Yash Ved of India Infoline, Dabashish Poddar says “We are planning to expand our business in South America and Europe.”
What kind of opportunities are you seeing in the textile sector?
The opportunities in the textile sector will continue to remain. The growth rate differs from segment to segment. In the textile sector, yarn and fiber business constitute 10% of the growth rate.
Given the textile industry's prospects and economic scenario in India what is going to be the roadmap for the company over the next five years?
The most important point for textile companies is the product development and innovation. 1% of turnover goes to product innovation and product development. Product development will play important role in survival and profitability of the company. In marketing, we need to be aggressive. After sale service is very important for the companies. We should be customer-friendly. If customer gives any feedback, we should take it in a positive manner.
What according to you are the biggest challenges in this segment?
The major challenge is the competition within India and competition outside the country. From fiber to garments, the more you go to customers, the more the competition increases. Cost of fund remains a big challenge. Another big challenge is how to fight the Human Resource issues. Since salaries and wages are increasing, we have to see how we can hire and retain employees.
What is the outlook for the textile industry?
There are some positive signs in the textile industry. The number of employments created in the industry is one of the highest in the country. The negative aspect is that many entrepreneurs over the years that are in the industry have not modernized. Their focus should shift. India is a better destination than China. People have to change the mindset from general to innovative. In every kind of business, growth is very important.
Tell us about your R&D operations?
We believe in R&D and value added product. In our Khamgoan unit we produce synthetic yarn which is renowned in the market.
Tell us about your various manufacturing facilities?
We have manufacturing operations in Khamgoan, Malkapur, Ghatanji and Dhulia. We have spinning facility in Khamgoan where we are producing cotton yarn. Malkapur has spinning and weaving facility. We have a fabric unit in Ghatanji having 1-1.2mn per fabric capacity and we have spinning and weaving units in Malkapur.
What would be your focus areas going forward?
Our focus area would be fabric, dyeing, finishing, garmenting and retailing.
What is the current debt-equity ratio?
The current debt equity ratio 1.15:1
Tell us about the JV with the Bhardwaj group? What is the status of the JV's operation at Khamgaon? How do you fund the capex for the JV?
The JV with Bhardwaj group has been executed on December 9 ‘06 with agreement to be 50% share holding of the promoters’ equity. The said JV is still in place and it envisages support to all units in terms of international marketing and coordination and not pertaining to any one individual unit.
What are your plans for the overseas markets? Which geographies are you looking to tap in future?
We export around 15-20% and will increase our export business. We would be focusing on yarn exports. We are planning to expand our business in South America and Europe.
- Setting up of processing unit and wind mill to meet the captive needs.
- Setting up garmenting unit for larger customer base.
- Setting up of retail chain, taking over or acquisition of a brand, for premium segment.
- Possible thoughts of home textiles and made-ups.
- Augmenting spinning and weaving capacity to make it a WORLD SIZED of international standard.
On the whole creating a large MEGA CORPORATION of a Rs10bn size by 2014 .
What is your plan at the retail level?
We are working out options and doing feasibility study for venturing into retail. In FY11, we may look at entering the retail business.
Brief us about your financials?
For the year March 2009. the company registered total sales of Rs2409.2mn with Profit Before Tax of Rs33.1mn. For the year December 2009, it has reported total sales of 1937.7mn with Profit Before Tax of Rs75.9mn.
What are your recruitment plans?
The total employee strength of the company is 1,738. We are planning to hire 500-700 engineers for FY2010-11 in fabric, dying and finishing operation.
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