With export commitments having dwindled in recent times, Ahmedabad-based Pradip Overseas Limited has shelved its denim foray plans. The company would instead focus on expanding its core business of home textiles.
"We were banking on certain export commitments. But over a period of time, the same started dwindling and we did not find it feasible to continue with our foray into denim," said Vishal Karia, director of Pradip Overseas Limited.
The company was initially looking at denim fabric manufacturing, over and above its current home textiles products. "However, the economies of scale didn't justify adding denim vertical to our business. Hence, we have now decided to instead focus on our core strength, i.e. home textiles. We intend to do this by introducing value added products and expanding our home textiles manufacturing capacity," Karia added.
From a current capacity of 140 million metres per annum, most of which are in home textiles, the company is adding about 40-50 million per annum. What's more, the company is also putting up new capacity for apparels. Of the 40-50 million metres being added this year, about 14 million metres of capacity will be used for manufacturing apparels. In all, the company is investing about Rs 400 crore for its expansion activities.
In terms of value addition, said Karia, Pradip Overseas is looking to manufacture upholstery like curtains in near future. "With the introduction of value added products, we will be able to strengthen the retail business of our 'MCYK' brand," said Karia.
The home textiles major had launched its own brand of home furnishing titled 'MYCK' which the company markets through distributors to enterprise customer. Once introduced, the value added products will help Pradip Overseas set up company owned stores in near future.
