We want NTC to be the preferred clothier of the country: K Ramachandran Pillai

Interview with CMD, NTC

The state-run National Textile Corporation (NTC) is planning to open 100 stores by 2014 with a turnover of Rs 100 crore. The textile giant also expects to break even by then. The company, which recently unveiled a new logo and plans a major image make-over, is aggressively looking for a pan-India presence, chairman and managing director K Ramachandran Pillai tells Nayanima Basu & Raghavendra Kamath in an interview. Edited excerpts:

What kind of an image make-over are you planning?
We want to present NTC as a modern state-of-the-art organisation, fully-equipped to handle all needs of the customers. We want it to be the preferred clothier to the nation. This was not there in the past. We want to take NTC to the next level and exceed customer expectations. We believe this is the right time. We are acquiring modern machinery, revamping our showrooms and including young talents in the organisation, along with experienced and highly-skilled senior management. Our new logo depicts our new face and aspirations. We have worked hard to be a self-sustainable organisation and now want it to be a profitable one.

What is the kind of revenue you make from NTC’s 93 stores now?
Presently, we earn approximately Rs 30 crore. This is tipped to increase multi-folds with the effect of revamping, stylised showrooms and huge increase in the offerings.

How much would you invest in the 300 stores which would come up in five years, and how much do you expect to earn from these?
We expect to hit a turnover of Rs 100 crore from 100 stores by 2014 and Rs 200-225 crore from 300 stores by 2016. We expect to break even by 2014.

What are the main locations for these stores?
Our stores are spread across the country, but the concentration is in the south.

Are you also planning to increase headcount from the present 9,000?
There is no such conscious effort. We will induce fresh talents and also have an experienced work-force. We will always be on the lookout for talent, experience and skilled work.

Will you open new mills, besides the 24 operational now?
We will diversify into technical textiles. We do not have immediate plans to set up new mills, but in the future we may enter into a joint venture, with us holding a certain stake in that organisation or mill.

Will you also explore the franchisee model for the upcoming stores?
Yes. Our target of 300 retail showrooms involves a mixture of franchisee model and company-owned retail outlets. We have recently opened a showroom on the franchisee model in Kanpur.

What are some of the new offerings expected from a revamped NTC?
We offer all kinds of finished fabric. We will also keep technical textile goods. We have moved into organic products and those would be available in our stores. We have recently launched our new collection of jeans under the label ‘classic NTC denims’.

Any plans for divestment in the near future?
No.