Madhu Sudhan Bhageria, Chairman & Managing Director, Filatex India
, is a first generation entrepreneur with around four decades of experience. Being the promoter and CMD, Madhu has worked his way up from scratch and has hands-on experience of all facets of the business, be it finance, purchase, marketing or manufacturing. A passionate leader with first class communication skills, in depth knowledge of all current economic, social and regulatory issues, he continues to grow his business in polyester yarns and has taken his company amongst top five in the country. Under his leadership, Filatex received the coveted "Fortune India The Next 500" Award 2018 which recognized it as one of the Top Wealth Creators over the last 3 year. He is the President of PTA Users Association (Regd.) and an active member in several other Industry Bodies and Associations.
In an interaction with IIFL’s Mamta Maity, Madhu Sudhan Bhageria, CMD, Filatex India
, said “Looking forward, we are buoyant about future prospects of our business and we fervently are looking for opportunities for strengthening and growing our business.”
Brief us about Business dynamics of your company
Filatex India Limited is amongst top five manufacturers of polyester filament yarns. Its product basket covers all ranges of yarns; by variety POY, DTY and FDY in coarse and fine deniers in all shades, be it semi dull or bright or any shades of colour which are dope dyed. The company’s strategy has been focused around growth through value added integration in polyester filaments.
Filatex started manufacturing in 1994. First manufacturing plant was set up in Noida. This facility manufactured 500 TPA specialty polyester, nylon, nylon 6, nylon-66, PBT, polypropylene mono filament yarns in technical collaboration with Reifenhauser GmbH of Germany who are pioneers in extrusion technology.
In 1996, FIL diversified into high growth area of specialty polyester filament yarns by putting up its second manufacturing facility at Dadra & Nagar Haveli, Silvassa. This facility is a state-of-the-art plant that was imported from Barmag A.G., Germany.
From 1996 to 2010, we were adding capacity in Dadra only. In 2008, FIL started producing polyester fully drawn yarn (FDY) using latest state of the art machines from Barmag. In Dadra, we used to buy polyester chips for conversion into yarns. In 1996, our capacity was around 15 tonnes per day which we gradually scaled it up to around 130 tonnes by 2010.
In 2009, FIL installed automatic needle looms for manufacture of narrow woven fabric with warping machines. It is primarily used in manufacture of carpets and mostly exported. In 2012, we started the Dahej unit. It was a step towards backward integration where we use basic raw materials to produce polyester melt which is used directly for making chips or spinning yarn. Keeping pace with the technology trends, FIL planned to move from ‘Chips to Yarns” to ‘Melt to Yarns” and set up its own poly-condensation plant of 600 MT/day and 260 MT/day of POY at Dahej Industrial Area, Gujarat. By putting up this unit, the company joined the league of major POY manufacturers. From there 100 tons polyester chips are transferred to Dadra plant for making yarn, thereby strengthening our operations.
Subsequently, we carried out two brownfield expansions in Dahej – first one was in 2016, wherein we added around 105 tons of FDY and texturising capacity for 200 tons per day. In 2018, we added bright polymer stream of capacity 300 MT/day along with 190 TPD of FDY and 25 TPD of POY with the latest state-of-the-art technology. Thus our product basket of POY, FDY and DTY covers full range of multi filament yarns in coarse and fine deniers with all options like bright, semi dull, black and all colour shades.
As on date, we have a total capacity of 3,28,000 tonnes per annum.
Growth Strategy/ Outlook
Our outlook on business prospects is strongly bullish. We firmly believe, it has been all over the world, Polyester yarns are the future growth engines of Indian Textile industry. Indian manufacturers are going to have a good run for atleast a decade. Globally the polyester market has been dominated by China which produces around 80% of the polyester. The second largest is India, at a distant, at 10%. Slowdown in China on account of sharply rising labour costs and paucity of labour will provide opportunity to Indian manufacturers in coming years.
Availability of key raw materials PTA and MEG with in the country has also improved the prospects, eliminating the uncertainties of shipments and volatility of prices as well as exchange fluctuations.
The company has recently commissioned its expansion of “Bright” yarns which has led to higher profits margins in H1FY 19 and it is expected to perform well in H2FY19 and FY20.
Revenue break up