Investing in technology for future growth

Rajjnish Aroraa is a man with a mission. The Vice Chairman of the Rs. 400-crore Dicitex Furnishings has set a vision to make the company a global leader in home décor. Along with his professional team he is aggressively working on expanding manufacturing capacity, entering new growth markets, setting up processes and building capabilities which will propel the next phase of growth.

Dicitex Furnishings was started in 1999, with a rich background of more than 54 years in textiles. In a little over 14 years, the company is today among the world’s top five manufacturers of uber-chic furnishing fabrics and upholstery with a turnover of over Rs. 400 crores. Dicitex has established state-of-the-art manufacturing facilities with machines sourced from the best global suppliers, ensuring that the final output conforms to the highest quality standards and compliances as required by its global customers.

With over five decades of proven expertise and experience in understanding the finer nuances of home décor, the company makes continuous endeavours to set new benchmarks in quality and design through innovation. It delivers an exhaustive range of high-luxury furnishings, including velvets, chenille, damasks, embroidered and sheer curtains, dress materials, made-ups and much more through its five vertically integrated units (four units in Tarapur and one in Surat) which have 450 weaving machines and a built in area of 9,75,000 sq. ft. These machines together have capacity to manufacture 20 million metres of premium yarn with flawless quality. The company has established a modern facility for embroidery and was one of the first in India to install a 21 yard Saurer Schiffli embroidery machine in the early 1990s.

Dicitex was founded by Mr. M.L. Arora who is currently the Chairman of the company. His sons Mr. Rajjnish Aroraa and Mr. Nimish Arora are the Vice Chairman and Managing Director of the company respectively. The company is managed by an experienced and professional team.

Dicitex offers the most tasteful selection of fabrics, textures, colours and prints with a range that delivers elegance with functionality and distinguishes every interior space with an identity of its own. For its customers who are stylish home-makers and globe-trotters the company has started its own independent design studio, based out of Italy.

Dicitex, along with talented global designers, creates 600 new designs (by a team of 22 designers) every month which are not just aesthetically appealing but also trend-setting in the respective markets.

Overseas markets

Outlining the key milestones in the company’s history, Mr. Aroraa says: “The first major breakthrough for Dicitex Furnishings was an order for made-ups from the US in 2003. This marked our entry into the made-ups business, and we set up a separate line for converting fabric into bedding lines, cushions, pillows and quilt. In 2007, Dicitex was the first Indian company to set up a fully integrated velvet manufacturing line from Belgium. This plant was set-up for one of the major global retailers, and today we have 20 machines of that for velvet manufacturing”.

In addition to being synonymous with premium luxury home furnishings in India, Dicitex has taken giant strides forward in overseas markets as well. “About 65 per cent of our production reaches buyers, including homemakers, in over 48 countries worldwide to markets like the Middle East, South East Asia and the US and through 700 retailers across India. The company has an established European market also with top-end retailers like Marks & Spencer, among others.

Dicitex has been growing steadily at 10-15 per cent year-on-year. The company believes in investing in the right technology without any compromise on quality or productivity. It has installed yarn dyeing machines from Loris Bellini, weaving systems from Staubli, Motex stenters, and velvet lines from Van de wiele. In 2008, the company invested in a coal-based boiler from Thermax.

Heat recovery from hot water effluents

Dicitex has its share of problems in the form of shortage of skilled labor and increase in power and water costs. The company is continuously investing on improving process efficiencies and adapting best practices in manufacturing. One such recent initiative was in the area of heat recovery which has resulted in significant savings in energy cost for the company.

In the dyeing industry the problem of managing effluent water poses a great challenge for the management. Recycling and reuse of treated effluents is profitable in the ever-deteriorating environment of water scarcity today. When the effluent water is hot, the heat energy from it can be utilized by the manufacturing unit to save the energy which otherwise increases the cost.

Dicitex Furnishings has recently installed a heat recovery system from Pozzi, Italy, in order to recover the heat energy from the effluent hot water drain from its dyeing machines which goes to effluent treatment plant (ETP). Earlier, the hot effluent water drain temperature was around 70 degree celsius which kills the bacteria in the biological ETP plant. After implementation of the Pozzi system the dirty water temperature goes below 40 degrees due to heat recovery.

The Pozzi RCR 60 heat recovery system is capable of handling a flow rate of 36 cubic metres per hour. The hot effluent water of 53 degree heats the fresh water and increases the temperature from 27 degrees to 47 degrees and is cooled to 38 degrees after the heat in it is recovered by the system. By doing so the company is able to save 7,20,000 kilo calories of heat in an hour, which is expected to result in a cost saving of Rs. 1.25 crores per year for the company.

The Pozzi heat recovery system is a patented design with rotating type heat exchanger. It does not allow dirt particles, fluffs, oligomers, etc., to settle down on heat exchanging surface, thus avoiding frequent cleaning like other tube and plate heat exchangers. Its unique operating principle, based on a rotating exchanging shaft, makes it to self-clean. With a life span of 80 years, Pozzi gives consistent efficiency over a period of time without getting rusted and corroded. There are almost 5,000 Pozzi RCR systems installed worldwide, with over 100 systems in India.

Pozzi is represented in India by Batliboi Ltd. Pozzi RCR is used in areas such as textile care, finishing, dyeing, leather, paper, food, etc. It occupies minimal space. Gravity fed, it does not need pumps, except in those exceptional situations where the flow is intermittent and for which a surge tank is recommended.

Dicitex believes in building a sustainable business and is deeply concerned about its responsibility to the environment. The company has installed a modern effluent treatment plant within the premises, and the discharge of effluents is strictly as per government norms.

Future growth plans

Dicitex is planning to expand its current weaving facility to expand into the area of technical textiles. The company is looking at functional textiles like bullet-proof dress materials, road construction materials, non-woven medical applications, fire-retardant, water-repellent, mosquito-repellent, anti-bacterial and sound-proof fabrics in which a lot of research has been undertaken.

Dicitex is also planning to expand in the apparel segment in a big way. Currently the company is offering only the fabric, but in the future Dicitex plans to offer complete stitched garments like high quality embroided Salwar suits. The company is also planning to expand its Surat facility to sharpen the focus on the apparel segment.

Talking about the company’s retail initiatives, Mr. Aroraa says: “We have developed an online ordering system whereby retailers can log into our site and place orders for even small quantities like 2 or 3 meters, and it will be despatched from our warehouse immediately. So far we have been offering these services to customers in India, and now we are extending the same to other global markets. Very soon we are planning to set up a fully robotized warehouse management system which will further improve the efficiency of the whole process”.

Dicitex has recently opened an office in New York, and has plans to set up one in London and another in Dubai in order to cater to its global customers. The company regularly participates in most of the international trade shows on home décor, including the shows in Frankfurt, Belgium, Turkey, Shanghai, Japan and in India.

Dicitex has also announced major participation in the Heimtextil India show to be held in June 2014. “In the Heimtextil India show we will present to the world what India is capable of in the field of home textiles. China is becoming very expensive because of increase in the labor cost. Hence we see a huge shift from 2014 onwards of major retailers looking to source from India”, adds Mr. Aroraa.