S Kumars plans to tap global fashion market
S Kumars Nationwide (SKNL) has outlined a new business strategy targeting the global textile market.
By Rajesh Unnikrishnan, TNN |
MUMBAI: S Kumars Nationwide (SKNL) has outlined a new business strategy targeting the global textile market. The Mumbai-based leading textile firm is planning to tap the high margin international fashion market, by setting up a new manufacturing unit in Gujarat and a design and marketing division in Italy, the world’s fashion capital.
The company is in the process of setting up a new manufacturing unit focusing the export market at Jagadia in Gujarat with an investment of Rs 460 crore. The plant will have capacity of 12 million metres per annum.
SKNL has hired an expatriate CEO from an European firm, Martin Haemmerle as the CEO of its high value fabric cotton (HVFC) division with expatriate management constituting designers and sales head for the new division. The design, sales and marketing division of HVFC will be based in Italy.
The plant will manufacture HVFC and 60% of the capacity will be used for the export market and rest will be utilised in apparel business and its flagship brand Reid & Taylor.
“Currently, over 90% of our revenue is coming from the domestic market. Now we want to tap the international market where the margins are high. Around 60% of the production of our new plant at Jagadia will cater to the export market,” said SKNL vice chairman and managing director Nitin Kasliwal. The size of international fashion market is estimated to be around Rs 15,000 crore.
He said the construction activity of the new facility is in full swing and the plant will be commissioned by March. “We are trying to tap the high quality international fashion brand market at a low operating margin. We are not doing the normal textile commodity business. We are positioning ourselves as a fashion brand seller in the international market.
Even the rupee appreciation does not have much impact on our business as our target is only on the fashion business, a segment in which margins are very high,” SKNL deputy managing director Anil Channa said.
He added that the rupee appreciation is helping the company as the import of textile machinery for the new plant has become relatively low.
The company is in the process of setting up a new manufacturing unit focusing the export market at Jagadia in Gujarat with an investment of Rs 460 crore. The plant will have capacity of 12 million metres per annum.
SKNL has hired an expatriate CEO from an European firm, Martin Haemmerle as the CEO of its high value fabric cotton (HVFC) division with expatriate management constituting designers and sales head for the new division. The design, sales and marketing division of HVFC will be based in Italy.
The plant will manufacture HVFC and 60% of the capacity will be used for the export market and rest will be utilised in apparel business and its flagship brand Reid & Taylor.
“Currently, over 90% of our revenue is coming from the domestic market. Now we want to tap the international market where the margins are high. Around 60% of the production of our new plant at Jagadia will cater to the export market,” said SKNL vice chairman and managing director Nitin Kasliwal. The size of international fashion market is estimated to be around Rs 15,000 crore.
He said the construction activity of the new facility is in full swing and the plant will be commissioned by March. “We are trying to tap the high quality international fashion brand market at a low operating margin. We are not doing the normal textile commodity business. We are positioning ourselves as a fashion brand seller in the international market.
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Even the rupee appreciation does not have much impact on our business as our target is only on the fashion business, a segment in which margins are very high,” SKNL deputy managing director Anil Channa said.
He added that the rupee appreciation is helping the company as the import of textile machinery for the new plant has become relatively low.
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