Established in 1996 as a buying house that would eventually take the group to international markets, the company has had a remarkable journey and is now poised to make a mark through digital platforms too in the ever-expanding textile industry
In a dynamically changing market, a crucial factor for any company is not only to survive but also evolve. In such a scenario, Acme International has emerged as one of the companies that are taking the game to the next level. In recent years, the company has not only kept up with the challenges but thrived. This is mainly due to the futuristic vision of its leaders that has helped keep the company a step ahead in the market. Acme International is a protégé of the LP Group. It was established in 1996 as a textile buying house that would eventually take the group to international markets. The founder of LP Group, Jitendra Lalbhai, had humble beginnings as a yarn supplier in the flourishing market of Ahmedabad.
The company entered into the yarn indenting business under the name of Jitendra Kumar Lalbhai and today with the new generation entering the fray, it is now one of the most trusted suppliers of raw cotton, yarn and fabric, generating a turnover of Rs. 1,000 crores. Group Managing Director Rahul Jitendra currently manages the reins of the company. He took the baton of this business in 1995 and has turned it into the global conglomerate that it is today. One by one, he understood where the need of today’s customer was and led to its expansion into seven companies that could fill all the gaps. For instance, in 2001, Acme Housewares was born as a joint venture to supply textiles and houseware products not only to Indian customers but also across Italy, Germany, Spain, etc.
In 2005, the first initiative into manufacturing was taken with the formation of Acme Cotsyn, which is a high-technology facility with 30 air jets and 42 rapiers manufacturing 6 lakh metres of dobby grey and denim fabrics per month. It further ventured into the knits segment by installing 15 state-of-the-art circular knitting machines to make 200 tons per month of grey and finished fabrics, which the company markets under the brand name ‘Acme’ in grey as well as finished versions. In 2010, Acme International acquired Casa Copenhagen of London, a home textile brand with the vision of bringing it to India. All these early initiatives and risks were learning experiences, leading the group to the next level of growth.
Right leadership
These changes in the organisation’s structure was a result of evolving leadership exerted by Rahul Jitendra who took the right risks at the right time and upgraded the organisation from time to time. The basic idea was to move towards the bigger picture. Thus, the company graduated from being agents to traders to manufacturers, investing all the time in improving the product chain. “There is a philosophy that states greater the risks, sweeter the reward. However, converting risks into rewards is the result of patience and consistency,” Jitendra says. Nurturing each element of the business requires a different mindset best suited for the specific process and this is where the next generation has come into the picture, leading the company to establish a brand name while also venturing into e-commerce and retail.
Each company under the group is headed by a family member or partner who specialises in that business given that each business vertical requires a different attitude and approach. Meanwhile, Acme International has continued with its growing presence in the international arena and currently exports to more than 35 countries across all products in the textile chain with sales exceeding USD 100 million. In recent times, Acme Yarns was added as a company to provide the much-needed services of exporting products from factories that did not want to get into direct exports. It therefore works as an exporter of all textile products. Further, Acme Housewares has entered the digital domain and has maintained a steady growth curve in sales from the domestic market as well as entered into international markets through Amazon. It has its own setup and storage factories in the US, Canada and United Kingdom and sells on the digital platform in 15 countries along with India.
Portfolio expansion
The company’s manufacturing business took the next big step by setting up LB Tex, which is one of Gujarat’s biggest independent weaving facilities, manufacturing approximately 32 lakh metres per month. This was set up for capturing a partnering opportunity with the Arvind Group. With the shared vision of adding value to their products and moving ahead to match the prevailing demands, the two companies joined hands. A large portion of Arvind Group’s fabric production is now contributed by the company through this partnership facility, governed by the former’s technical superiority. It’s also the manufacturing centre for top garment brands like Tommy Hilfiger, Gap, and others.
“With more than 40 million metres of fabric manufactured per year, our yearly fabric production can cover the circumference of the earth,” quips Jitendra. The buyout of Casa Copenhagen in 2010 was finally given shape with the formation of Casa Copenhagen Brands Ltd., which owns and operates some leading brands including the flagship home textile brand Casa Copenhagen that is sold through conventional distribution and the evolving online platforms. Under this arrangement, the group has forayed into the retail segment by setting up its first 4,500 sq. feet home retail store, My Casa Copenhagen, thus triggering one of the biggest and home textile retail chains. Now, plans are afoot to set up six more stores across Gujarat and emerge as the biggest home retail chain in this area.
Facing challenges
Meanwhile, even when hit by the tide of demonetization and GST, the company was able to stay afloat. In a short time, Acme International bounced back and sales picked up. It adapted to the new tax pattern that keeps a precise check on the practices of the textile industry. With the lowering demand and restricted cash flows, however, the biggest challenge for any organisation is the question of getting payments. Even in this scenario the company has found a niche for itself so that while operating in a testing environment full of uncertainties, both the weaving facilities continue to function at 100% capacity. In fact, the company is planning to increase the capacity by adding another 100 machines and commence the production of yarn-dyed fabric that would enable it to have the entire portfolio of denims, shirting, bottoms and yarn-dyed fabric.
Clear vision
Thus, keeping its vision and mission strong, the company has been taking slow but steady steps towards expansion, keeping in mind that as of now the supply is exceeding demand. Behind all its operations is a philosophy – innovation does not stop at generating profits but is the need of the hour in order to make the industry sustainable. To that extent, Rahul Jitendra has also taken an innovative step to make Acme International and its products fall in line with current environmental needs. The company does not produce any wet products that would result in adding to the pollutants. They are also working towards manufacturing regenerated fabric made from scraps of fabric and plastic bottles. The company is also considering a new range made from a process which uses a mix of cotton and polyester yarn. Moreover, it is Oeko Tex-certified, BCI-certified, and employs organic production methods.
Explaining the intricacies of sustainability and making the products acceptable in an international market, Jitendra says: “There is a demand for sustainable fabrics but the end users have to understand that the feel of the garment or fabric will differ as its composition is different.” Talking about further initiatives in sustainability, he adds: “We are looking to establish solar power rooftop units also as that would be a move towards clean energy.” Given all these plans on the anvil, Acme International has laid out a clear roadmap for expansion. The weaving fabric production unit, for example, is planned to further augment its output with the addition of another 102 machines in the coming years. The knits fabric division has taken the step of forward integration and Acme Clothing LLP has been set up to cater to the same.
Road ahead
Flagged off with an initial capacity of 150 machines, the facility has also launched its own brand, EERAA, which is in the leggings segment and sold through the distribution and online platform as well as its own marketplace, shop.eeraaworld.com. There are also plans to add further garmenting facilities in Gujarat that will not only benefit Acme International but also strengthen the four main industries present in that market. As the government policy is changing and now showing support for textiles, the group is poised to grow. Along with Amazon, the company is establishing a new 35,000 sq. feet warehouse in order to have storage for the expanding output and for keeping more products in stock.
These additions are aimed at creating a brand business and shifting the company’s focus to e-commerce and retail. “We are also coming up with a joint brand that would cater to the European markets,” Jitendra reveals. As for future prospects, he says: “We will go public with our brand as that will help us showcase the values we offer with our wide product range. Our structure is ready and we will soon take further steps.” Holding up this strong company are attributes that it has inherited from its 50-year-old lineage. “This success story can be credited to all those who have led the company right from its inception because each one of them was not only guided by the right philosophies but was driven by passion to achieve great heights,” Jitendra states.