Nitin Bhandari, Managing Director, Bhandari Hosiery Exports Ltd
has done Master of Business Administration in Entrepreneurial Management from European Business School, London, UK. He has developed vast experience in the fields of production management, setting up of new projects, liaison and marketing with foreign and domestic buyers, merchandising, marketing, cost & wastage control.
Bhandari Hosiery Exports (BHE)
was incorporated in 1993 by Naresh Bhandari and Kusum Bhandari. The company over the years has come up the value chain is now a garment manufacturer, which produces high fashion knitted garments for global brands. The company is primarily engaged in manufacturing and exporting of knitted hosiery garments such as t-shirts, pullovers, sweat shirts, bermudas, polo shirts, track suits, pyjamas, lowers, ladies knitted tops with embroidery, prints etc. It has presence across 17 countries which include markets like USA, Canada, UK and the European Union. Company’s clientele includes brands such as Tom Tailor, Marlboro Classics, Atkins, Quick Silver, S.Oliver, Givenchy, Watson, May Department Stores, Karstadt Quelle,Charles Vogele, Hajo Strick, Matalan Retail, Kitaro.
Speaking with Anil Mascarenhas
and Yash Ved
, Nitin Bhandari says, "The major triggers for growth would be modernisation and expansion of fabric dyeing capacity from 4 TPD to 10 TPD. With the latest machineries in place, we will have significant increase in top line and profit margins."
Your business mix is skewed more towards exports. Do you see it changing in the coming years?
As far as the Indian industry is concerned, we are dominantly connected with the export market because the garments, which we are manufacturing is 70% for export and 30% for domestic market. Coming to exports, the European scenario is not very strong because the currency has not been stable. US witnessed bad times for the past 5-6 years but now we are stable as far as the US consumption is concerned. There is also a good increase in the domestic market. We expect further growth to come in the domestic market.
We look at domestic brands because foreign brands that have come to India are only into retailing and not in wholesale. Indian high street stores are hardly 9-10% of the total retailing market; rest is all wholesale in which Indian domestic market is very strong. In recent times, even online portals are also turning out to be a great advantage for the domestic market.
What would be your big triggers for growth?
The major triggers for growth would be modernisation and expansion of fabric dyeing capacity from 4 TPD to 10 TPD. With the latest machineries in place, we will have significant increase in top line and profit margins.
Any new fund raising or investment plans?
In FY16, we plan an expansion in yarn dyeing and sewing thread with an investment of about Rs. 25 crore. We expect to follow the bank route for raising money. Almost 60% of the money would be raised through the banks and rest will be contributed by promoters.
What is your outlook on financials?
Last year our total turnover was around Rs. 120 crore. We are very optimistic and positive that we will reach Rs. 160-170 crore this year. Given our expansion by the end of the year, we expect to reach the turnover Rs. 270 crore by 2019.
Are you looking at any acquisitions in terms of clients or a manufacturing units?
As far as my company is concerned, acquisition can be possible either in the form of backward integration or forward integration. In backward integration, we can only look at the spinning plant for making yarn, which is our basic raw material. Acquisition will happen only if there is a real good deal on the cards.
Are there any plans for push to renewable energy or any changes for captive power consumption?
We have just expanded and renewed our Fabric Plant and all the thrust has been on renewable technology. The liquor ratio of our machines is 1:3 against the industry average of 1:7. Our electricity consumption is also 30% in comparison to the industry average. Even steam consumption is lower therefore there is overall lesser impact on the environment. In future also, we will focus on technology supporting the environment.
Comment on your new unit.
Our new unit will be set up at the same premises in Ludhiana, We have a good land bank in the heart of the Industrial area of Ludhiana. We would be saving a lot of money on project cost now and in the future as well.
Any plans to raise stake?
We hold 24% in the company and rest is mostly public holders. The promoters are committed to raise their holding levels in the coming future.
What is your message to your shareholders?
We are committed to efficient management practices and putting in place good governance. In coming future, we will be very aggressive in terms of growth and expansion. We will also look at dividend distribution in the coming future.