The Himatsingka Group is a vertically integrated home textile major that designs, develops, manufactures, retails and distributes bedding, bath, drapery & upholstery, ultra-fine, cotton yarn, terry towel and bed linen products. In addition, the manufacturing portfolio to be augmented soon with the setting up of a new terry towel facility.
On the manufacturing front, the company has successfully commissioned the brownfield sheeting expansion project that enhanced the installed sheeting capacity from 23 million meters per annum (mmpa) to 46 mmpa. The project was commissioned on schedule in October 2016.
To enhance its integration quotient, Himatsingka commenced construction of its ultra-fine count cotton spinning facility in July 2016. This facility, with an installed capacity of 2,11,584 spindles, will meet the cotton yarn requirements of the sheeting division. With this, it will be the world’s largest cotton spinning plant under one roof. The work on the project is on schedule and will be commissioned in the third quarter of FY 2018.
These state-of-the-art facilities serve as benchmarks for manufacturing capabilities and practices. The group has also positioned its sheeting terry towels spinning drapery & upholstery terry towel facility.
The existing facilities of the group are located at the following places:
The integrated bed linen manufacturing facility, the integrated ultra-fine count cotton yarn facility, and the integrated terry towel facility (proposed) are located at Hassan in Karnataka, where as the drapery & upholstery manufacturing facility is located at Doddaballapur, Karnataka.
Retail and distribution
Himatsingka’s retail and distribution network caters to over 7,000 points of sale at the global level. Armed with a strong portfolio of brands (both licensed and owned), the group is focused on strengthening its intellectual property portfolio across key global markets. The brand portfolio consists of the most respected fashion labels as well as technology-driven brands that have led the industry. The group has been the leader in the branded cotton, track and trace space.
During FY17, revenues from brands crossed Rs. 1,000 crores and stood at approximately Rs. 1,200 crores. The company proposes to commence construction of its new terry towels facility during FY18. This facility will have an installed capacity of 25,000 tonnes per annum (TPA). These investments are part of the Rs. 1,300-crore expansion program to augment its manufacturing portfolio and are being carried out in phases. Investments under this program that commenced during the third quarter of FY 2016 are likely to continue through the middle of FY 2019.
Brand portfolio
Himatsingka has also taken commendable steps to strengthen its brand portfolio. It has emerged a global leader in track and trace capabilities with regard to the cotton value chain. With exclusive global rights to the patented DNA tagging-and-fibre typing technologies, the company has an edge in bringing traceability solutions to its clients. Its Pimacott, HomeGrown Cotton and Organicott brands will be focused to cater to the client requirements, where products will be equipped with the DNA-based tagging technology.
Himatsingka also continues to make efforts to enhance visibility and the market share of its iconic labels, both owned and licensed. Calvin Klein Home, Kate Spade, Bellora and Atmosphere, among other brands in the portfolio, have strong brand recall. They also have a strong connect with the consumer with their ever-evolving product aesthetics, specifications and global appeal.
Operating performance
The various initiatives across divisions have had a positive impact on the consolidated financial performance. Consolidated revenues for FY 2017 grew by 13.1% and stood at Rs. 2,138.41 crores against Rs. 1,891.31 crores during FY 2016. The compounded annual growth rate (CAGR) for consolidated revenue for a five-year period improved to 8.4%.
The focus areas
During FY 2018, the company plans to remain focused on furthering its global presence across its product categories. This will be possible with increased capacity utilization at its manufacturing facilities and greater penetration of the company brands across the existing and new markets.
With the commissioning of fresh sheeting capacities in the second half of FY 2017, manufacturing revenues saw significant growth during the latter half of the fiscal. Himatsingka hopes to further improve the utilization level in the sheeting division, going forward. All efforts will be made to ensure the timely commissioning of its new cotton spinning facility in the third quarter of FY 2018. This will give the group greater control on the value chain and enhanced integration levels.
Smart manufacturing
The global manufacturing landscape has been inundated with technology platforms and opportunities that will pave the way for next generation shop floors and usher in a new manufacturing culture. The textile industry is no exception. Himatsingka has been constantly exploring technologies that may have transformational impact on productivity and efficiency. The company does this by leveraging automation and virtual platforms that radically alter the way it looks at manufacturing. These themes are especially important, given the emphasis on making India a global manufacturing hub.
Himatsingka believes that a combination of technology and scale in the textile sector will be essential to take India’s share of the global textile trade further up.