GHCL Global Sourcing sets Rs 4000 cr target

Newly-incorporated GHCL Global Sourcing has set a business target of over $1 billion (approx Rs 4,000 crore) in the financial year 2008-09 in a bid to emerge as the biggest sourcing company in home textiles and accessories in the next two years.

GHCL Global Sourcing is a 100 per cent subsidiary of the $700-million GHCL.

"We have just started operations. The company will cater to our overseas and Indian retail chains. To attract a better clientele, we will be changing the name of the company," said Sanjay Dalmia, chairman of GHCL.

With the incorporation of GHCL Global Sourcing, Dalmia feels it would result in tremendous savings in procurement costs as well as logistic costs for front-end companies in the US, ie Dan River, Best Textiles and HW Baker, catering to direct business segments like retailers, speciality stores, hospital and hotels.

Recently, GHCL had announced that its subsidiary Roseby's would be listed on Indian bourses. Similarly, the company is open to listing the global sourcing subsidiary "at an appropriate time".

To begin with, GHCL Global Sourcing will supply merchandise to Roseby's even as the company expects fresh orders to start coming in from early next quarter. "We are already on the lookout for new customers and will begin talks with other retail chains in home textiles for sourcing merchandise," Dalmia added.

GHCL has manufacturing facilities in India, Cambodia and Mexico and has, over a period of time, built a strong global sourcing competence in India, Pakistan and China. It had acquired 3 companies in US "" Dan River, Best Textiles and HW Baker "" apart from retail giant Roseby's in the UK.