Owing to global recessionary trends, Ahmedabad-based Anjani Synthetics has shelved its plans of launching German men's apparel brand in Indian markets. Less than a year ago, Anjani Sythetics had embarked on a path uncharted by the textile processing house - of venturing into retailing of garments. For its foray, the company had been in talks with a renowned German men's apparels brand.
"We had ben in advance talks with a German men's apparel brand but with the global recessionary trends setting in, we have shelved our plans. Instead we would be focusing on consolidation of processing and home textiles business," said Kailash Agarwal, chief executive officer of Anjani Synthetics Limited, refusing to divulge name of the German company. The company is now expanding its processing capacity by 10-15 per cent, he added.
Both the parties were also on the verge of setting up a special purpose vehicle under a 50:50 joint venture following which Anjani Synthetics was supposed to be the master franchisee for the German brand, said Agarwal.
So far, Anjani Synthetics used to outsource yarn processing operations to other players like Chennai-based Motherland Textiles and Surate-based Shahlon Industries. However, with its focus shifting again to its current business, the company intends to take up the operations itself.
"Earlier we had ventured into processing yarn ourselves for which we had ordered around 50 air-jet looms from Japan at a total cost of Rs 8-10 crore. Also, we had upgraded our fabric printing capacity by adding an advanced 16-colour rotary to the existing five rotaries. Now we have taken up expansion of our processing unit and have added capacity by 10-15 per cent," said Agarwal.
Apart from processing, Anjani Synthetics exports home linen to countries like Germany, Russia, Czech Republic, Sweden and Switzerland, which constitutes 70 per cent of the total home linen stitched and processed by the company. Bullish on its domestic expansion plans, Anjani Synthetics Ltd. is expecting to do a turnover of Rs 220-240 crore by the fiscal end.
"In spite of the meltdown, we have been able to add around Rs 20 crore to our turnover and touched Rs 200 crore mark last fiscal and will add similar amount by the end of the financial year," said Agarwal.