Leveraging on its knowledge and decades long experience in Agro and Geotextiles
Ahmedabad-based CTM Technical Textiles Ltd. (a Chatarbhuj Lajpatrai Group Company) has made a name for itself as a leading player in the Indian technical textiles domain. The company has 2 main divisions, namely, CTM Agro Textiles and CTM Geosynthetics along with other divisions like CTM Commercial Nets, CTM Cattle Care, etc.
The company is a leading manufacturer of a wide range of Agro textiles and Geosynthetic products. Its range of agro textile products include warp knitted fabric like Shade nets, Mulch films, Non-woven crop covers, Insect netting, Silage films, Soil solarization films and its commercial netting products such as Mandap tent nets, Scaffolding nets have carved a niche for themselves in the market. As part of the geosynthetics division the company offers products and services in the field of civil engineering and infrastructure development. It manufacturers 100% polyester woven geo grids and deals in non-woven and woven geotextiles, geo bags, coir mats, geo composite drainage, PP biaxial geo grids among others for different road, rail and demanding soil applications.
In an exclusive interview, Mr. Amit Agarwal, Chairman of CTM, shared detailed insights into the company’s past, present and future. Beginning the interaction with a brief insight into the history of CTM Technical Textiles Ltd., Mr. Agarwal said: “I come from a business family. My Grandfather had started CTM Textile Mills and The Patel Mills Co Ltd. in Ahmedabad which is still a renowned name in the textile industry. I decided to venture into the field of technical textile and founded CTM Technical Textiles Ltd. in 2006. I could foresee technical textile as a sunrise industry in the whole of textile value chain.”
Recollecting the early journey, through its struggles and milestones, Mr. Agarwal pointed out from his experience that “When you start from scratch, you have to go through a lot of processes like land, machines, investments, bankers, customers, etc. It doesn’t happen overnight and at the initial stage the progress is slow but need to keep patience and have steady growth. But for us the odds were in our favor. When we started in 2007, the investments in agro textiles and commercial netting gave us good growth and in just 4 years we doubled our capacity. One who is moving up the ladder will always have to face challenges. The challenge for our company came in 2011 when we witnessed heavy competition in this business due to low entry barrier. We took strategic moves and decided to diversify into different sector of technical textile. This is where the Geo Technical Textile division of our company started”.
Adding further he said: “The growth of company can also be seen with respect to its capital investment. We started with a building, spanning about 15,000 sq. ft. We have invested continuously and expanded capacity. Today the built up space is about 75,000 sq. ft.”
Continuing about the eventful journey, Mr. Agarwal said: “In the last 10 years, the company has grown from scratch to a turnover of about half a billion rupees. The demand for our product has incrementally increased. Last year we have increased our capacity in Agro textiles and commercial netting business to cater to this increasing demand and are investing significantly in the geotech business this financial year. With value for money proposition for our customers we expect our business to touch a billion rupee turnover mark in near future.”
Diversifying applications
“Among many other projects, the recent project we did was for the Jhansi – Lalitpur section for the Ministry of Railways, which involves laying of a geo grid and geo textile layer underneath the railway tracks. This is a pilot project and going forward we see a huge growth in such different difficult sectors”, he shared.
He said such projects will provide top of the line opportunities for technical textile businesses. And the writing on the wall is clear. If the country’s GDP has to grow it has to investment in infrastructure – on road, railways or others and that is where geo tech business will be benefitted. “With the vagaries of nature and global warming in front of us, the concept of Protective cultivation has to reach at the farmer level to cater to the huge demand of food for the growing population and that is where our Agro Textile business will be benefitted”, he mentioned.
Tremendous potential – ITTA
As the founder Director and present Vice Chairman of the Indian Technical Textile Association (ITTA), Mr. Agarwal has been observing the trends of the Indian technical textiles market from close quarters. “We have been interacting with the Ministry of Textiles on a regular basis. We have put in a lot of effort to promote technical textiles including awareness programmes with the help of various ministries such as the Ministry of Road Transport & Highways, Ministry of Railways, Ministry of Defence, Ministry of Agriculture, Ministry of Home Affairs, Ministry of Water Resources, River Development and Ganga Rejuvenation, Ministry of Housing and Urban Affairs, Ministry of Shipping, Ministry of Health and Family Welfare, Ministry of Labour and Employment. These are the ministries who are the ultimate consumers of technical textiles in one way or other and hence the focus. We at ITTA have been putting in efforts to make all this potential become a reality for the country.”
Look North East
As part of its agro textile business growth strategy, the company has been targeting the north eastern market. “We have done Demonstration Centers and distributed agro kits under a Government scheme. The farmers are using the shade nets and other agro textile materials for cultivating their crops. The per acre production of vegetables is minimal in our country. Our company provided holistic solutions to farmers which have resulted in increase in crop yield. This has provided a win-win situation to all and has translated into huge potential for our agro textile products.”
The company currently has offices located in Assam, Nagaland, Arunachal Pradesh and has also one in Karnataka to increase its coverage under its vision of pan-India brand. “Entering into the northeast market has been a strategic decision, because it is an area where it is difficult for the competition to reach. But CTM has taken up the challenge and budding well”, mentioned Mr. Agarwal.
Advantage CTM
Mr. Agarwal is of the opinion that when it comes to agrotech or geotech and for that matter technical textiles, it is a business which requires a lot of other specialized knowledge, apart from just technical expertise. The machinery manufacturer supplies only the machine, but for making the right end-product out of it, one need a lot of other specialized knowledge, something that CTM has cultivated in abundance. Today CTM has a dedicated team of engineers, supervisors, sales team and a complete management team in place which are dedicated to CTM and inclined to grow with the company. Although it will take its own time to grow, the brand and team at CTM is slowly and steadily growing.
Technology & innovation
CTM has always been known for its strong R&D focus and innovative approach. It has recently developed a Mobile application using which registered customers can check the company’s stocks and based on that order for particular products. The app has made the entire sales process a breeze, both for its customers and for itself. Elaborating on the same, Mr. Agarwal said: “The app works on both IOS and Android-based smartphones. The application is made in such a way that the entire ordering, sales and dispatch process is a smooth ride. With the app, the customer can straightway take a look at the stock in our factory. He just has to open the app, it will show him the various products, along with available colors and sizes, etc. We launched this app last year and it has definitely helped increase our business.”
Message to budding entrepreneurs
What is the advice that Mr. Agarwal wishes to give to budding entrepreneurs wanting to enter into the technical textiles business? He says: “Have lots of patience. You should have the right machine, focus on getting the right quality. Anyone coming into this business needs to understand that nothing comes easy in this line and you will have to put in lots of hard work to succeed.”
Future plans
Discussing about his future plans he mentions: “We intend to shift to our new corporate office, which is under construction, by October 2019 and in about a couple of years’ time we also foresee ourselves going in for an IPO. Our top line will be reaching the right level. This will ensure that our value will get unlocked and we will be able to invest and grow in a bigger way. At the same time our bankers are very bullish on us and on our track record. They have already extended all support to our future plans. We are thankful to them personally for their continuous support in our journey to growth.”
Mr. Agarwal is clear that the company intends to invest only in hi-tech products including composites. “We will be investing into fibers and materials like aramids, glass, carbon, etc., from which hi-tech technical textiles are made. Although it may initially be a challenge to penetrate into such markets but entry barriers and competition are low in such businesses which are difficult and with the R&D that we intend in doing, we are confident of success in long run. We will target specific end-users and play our own humble role as part of the ‘Make in India’ vision.”
Asked about new JVs, Mr. Agarwal answered in the affirmative stating: “We intend going in only for Greenfield projects for which we need land banks. We have identified about 25 acres of land in our vicinity for which we may be closing the deal shortly. We have with us projects in hand for investment to the tune of half a billion and which will be implemented in time to come taking CTM top line to nearly three billion rupees.”
In his message to international players in the field of technical textiles, Mr. Agarwal pointed out that they could look at India, both as a production hub as well as a huge market of 1.3 billion people that is ready to be tapped. “We have both kinds of opportunities. It is good for interested players to come early and have the first movers’ advantage and CTM is ready for such discussions and such Joint venture opportunities.”
Technical Textiles is still in a growth phase in the Indian market. There are very few Indian companies who have the knowledge, experience and technology to provide innovative solutions be it in Geotextiles or Agro or other segments. With the governments’ increased focus on the agriculture sector on the one side and infrastructure development on the other, there is a growing requirement for innovative futuristic solutions. CTM has years of experience, knowledge, technology and more importantly understanding of Indian market requirements. The company is well poised to take advantage of the emerging growth opportunities in the future.