GHCL mulls supplying home textiles to Bharti Walmart

With the FDI in retail being opened up, home textiles and soda ash player Gujarat Heavy Chemicals Limited (GHCL) is mulling supplying made-ups to retailers like Bharti Walmart and IKEA.

For this the company is also expanding its manufacturing facility at Vapi in Gujarat.

"We are already supplying our home textile products to Future Group apart from exporting to western countries. Yet, instead of going in for our own retail chain, we are mulling supply of our home textiles to big retailers that are set to come like Bharti Walmart and IKEA, among others. For this to happen, we have already begun expanding our manufacturing capacity at our Vapi plant. However, we are yet to initiate any talks with them," said RS Jalan, managing director, GHCL.

The company is looking at a production capacity increase of 15 per cent from the current 100,000 metres per day of home textiles, apart from increasing its capacity utilisation from 85 per cent to 100 per cent. "In terms of value, we have a capacity of $ 120 million (Rs 645 crore roughly) against which we are earning a topline of $ 100 million (Rs 530 crore approximately). We would like to increase this capacity utilisation. Moreover, we are also looking at expanding our production capacity further by 15 per cent in areas like spinning, weaving, stitching and utilities," said Jalan while refusing to divulge investment details.

Jalan also added that the company has been growing constantly since last couple of years despite growing competition from countries like Pakistan and China, apart from domestic players.

"We are not only competing with Pakistan and China but also with Alok Industries, Welspun and other Indian players. However, we are focusing on cost competitiveness to stay ahead in the race. For instance, we are looking at setting up a captive power plant using renewable energy resources," Jalan said further.

While it grew by 50 per cent in 2011-12 as against 2010-11 from $ 50 million (Rs 260 crore roughly) to $ 100 million (Rs 530 crore approx), Jalan estimated a growth rate of 20-25 per cent for the company during the fiscal 2012-13.

Resultantly, the company expects to peg a turnover of $ 120-125 million (Rs 620-645 crore approximately) for the fiscal ended 2012-13.