GHCL sees home textiles double revenues
Thomas Russell -- Furniture Today, October 31, 2007
New Delhi, India – The diversified manufacturer GHCL said its home textiles unit now accounts for 41% of total revenues, having grown by 101% as of the end of the second quarter in September – and the company is looking to domestic expansion in India as a profit-driver in the immediate future.
“GHCL expects to substantially improve its margins for the home textiles business with the launch of its exclusive range of home textiles retail chain stores in the country in first quarter of 2008,” the company said, “along with the already launched Grace line of bedding products for the domestic market.”
GHCL is pressing forward with its plan to create a global, vertical home textiles industrial-retail contender. At one end of the supply chain, GHCL has recently expanded its spinning capacity in India; at the other end it is following up its July 2006 acquisition of 300-store U.K. home furnishings specialty chain Roseby’s with a store image refreshment campaign and the launch of an e-commerce site, while cutting costs through internal sourcing.
The company is in the process of consolidating its three U.S. manufacturing acquisitions – Dan River, HW Baker and Best Manufacturing Group – and said their overall sales are trending up.
GHCL said it now has “over 50 vendor relationships” with manufacturers across Asia to Turkey and Mexico.
“With the growing momentum in [the] global retail arena, we are fast approaching the time wherein we would be able to fully leverage our business model after successfully integrating Indian and foreign operations in the home textiles business,” said chairman Sanjay Dalmia.
GHCL net sales for the second quarter (all Rs stated as rupee crores; exchange rate as of Oct. 31) were Rs. 230, or $58.5 million, up 19% from Rs. 194, or $49.3 million, for the same period one year ago. EBITDA climbed 14% to Rs. 56, or $14.2 million, while after-tax profit rose 2.6% to Rs. 25.4, or $6.5 million.
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