Komal Texfab, a vertical integrated company based in Ahmedabad with an annual business of nearly Rs. 200 crore, is planning to expand aggressively taking the IPO route. There are two separate IPOs (Initial Public Offers) that it is aiming at. The first SME IPO will be directed towards enhancing processing capacities with a target of Rs. 40 crore. The second IPO will be focused on establishing a textile park with an expected investment of more than Rs.100 crore. Both these IPOs will help the company to double its turnover in the next three years. In an exclusive conversation with Apparel Online, Suresh P. Bagrecha, CMD of the company disclosed briefly about his company’s journey so far and the future potential of such extensive plans for the organization’s growth.
With regard to their orientation towards IPO, an optimistic Suresh explained, “IPO is a better option than paying heavy interest rates to the banks. The capital that we will be getting through SME IPO, will help us release our existing high rate of interest burden on loans apart from supporting in expansion of processing capacities.” He even informed about his company already having started work on land acquisition at Dharoda village in Kheda district which is 20 kilometres away from the main office of Komal Texfab and the entire process is expected to be complete in 6 months’ time.
“We at Ahmedabad, or anywhere in Gujarat, have everything right from cotton availability to facilities for final dispatch. We will also continue increasing our scope in exports though domestic is a strong market for us. Hence, we are fully geared up for further growth all the way. Having sufficient experience in supplying knitted printed fabrics to many top exporters of Delhi-NCR as well as other countries like Sri Lanka, we are now well-versed to successfully tread our path in the exports’ domain for a long time.” – Suresh P. Bagrecha, CMD, Komal Texfab
Giving a more in-depth view into the company’s expansion strategies in knitting and garmenting, Suresh averred that they are planning to install 14 circular knitting machines of Karl Mayer. At present, Komal Texfab’s knitting capacity is 200 tonnes per month which will be doubled after this expansion. Already producing a variety of fashion garments, the company is diversifying into jeans and ethnicwear manufacturing with this new garment factory which will have 500 machines. Emphasizing on this diversification from its core strength of knitted garments as a necessity to promote future development, Suresh asserted that this would help his company reach a target of Rs. 500 crore in the next 3 years. To improve its overall working system, the organization is also investing into ERP system.
“Our company has been seeing strong financial and sustainable growth of more than 30 per cent since the past few years which will support us in our expansion plans.” – Prahlad Jhanwar, Head – Accounts & Finance, Komal Texfab
With an undeterred zeal to attain greater heights in both garmenting and fabric business, Komal Texfab witnessed a phenomenal growth of more than 30 per cent last year and it is expecting similar growth in this current fiscal as it is already working with the top retailers of India as well as good overseas buyers. To put it in Suresh’s own words, “We are a well -organized and professionally managed group. Our company fully takes care of its social responsibilities, especially towards its staff. We try and ensure to give the best working environment to our workers, taking care of their nutrition, planning for their insurance cover, etc.” Besides, the company also organizes some events which take place on a regular basis to increase the mutual understanding between the employers and the employees.
