Silk furnishing and textile major Himatsingka Seide has firmed up its non-silk and bed-linen foray. First in line is the Rs 25-crore capital expenditure for the non-silk entry. The 35 per cent increase of its 1.71 million metre per annum existing capacity is anticipated to go on stream within six months and projects doubling the units turnover over a three to four year period. However, the bigger plan is the Rs 150 crore to Rs 200 crore greenfield venture marking the groups entry into the high-end bed-linen range and the Rs 500 plus crore sales club. The bed-linen project envisages setting up a 35,000 metre a day facility comprising wider- width looms, dyeing, finishing and making up. Dinesh Himatsingka, managing director said, "We are seriously looking at the project. However any announcement is likely only in September after the Exim policy." It is learnt the company will finalise the project location based on the Exim policy announcements on special economic zones (SEZ), as it hopes to export a significant portion of bed furnishing. The project on an annualised basis is estimated to rake in upwards of Rs 350 crore revenues to the company. The Rs 165 crore integrated textile firm, has been exploring the entry into these areas for some time now. In fact, the company is said to have conducted a feasibility study to zero-in on the prospective locations and order of investment. Incidentally, these moves complement the group's present activities and its nascent luxury furnishing brand and retail stores 'Atmosphere'. Though a new activity, the bed-linen project will allow it to complete its core focus areas in home textiles. Currently the company produces and markets silk furnishings like upholstery and curtain fabrics. However, officials ruled out entering the other remaining home textiles sub-segment, bath towels, dubbing it an unrelated activity for now. Officials said, the company will continue to concentrate on the value-added offerings even in non-silk segment. Adding this will let the firm handle a bigger clientele, especially those scouting for elegant and luxurious cotton and blended fabrics. Besides the domestic segment, the company is looking at overseas opportunities post the quota regime. Further, this entry will offer us the pricing arbitrage opportunity too, they said. As the non-silk fibre cost will be lower, customers will have several pricing options.Meanwhile, the company is expanding its retail initiative Atmosphere. Since its inception 10 months ago, the company has netted Rs 20 crore sales from 10 outlets. It plans another 10 over a 18-month period. Himatsingka's executive director Shrikant Himatsingka said, the company is exploring setting up shop in high-end MBOs, department stores and in a few destinations abroad in a bid to turn Atmosphere into a Rs 80 crore brand in four years.
