Pradip Overseas Ltd, leading exporters of home textiles, is investing Rs 380 crore this year on capacity expansion for its new products of home furnishings in the domestic market, a company official said here on Thursday.

“We are expanding our capacity from 140 million meters to 196 million meters by April 2012 to meet the growing demand in the Indian market where the current market size is about Rs 10,000 crore per annum. We expect revenues of Rs 200 crore in the first year of the domestic launch,” Mr J.S. Negi, Director and Technical Advisor, told Business Line on the sidelines of the launch.

Most of the Indian market in home textiles is catered by the unorganised sector, with only 5% being with the organized players.

Pradip Overseas expects to provide branded products at affordable prices, starting with Rs 645 for a set of bedsheet. “The offerings from a limited number of branded players are mainly high-end products.” On an average, 8% of Indian household income is spent on home needs.

New products

The Ahmedabad-based, BSE-listed company, on Thursday, launched over 500 products in 11 collections, with about 10 designs each, for the Diwali festival. For the new products, under the “MYCK” brand for retailing, the company is reaching out to some 1,500 retailers through tie-ups but has no immediate plans for opening standalone outlets, Mr Pradip Karia, Chairman, said, adding this is one of the biggest launches of any home textile brand in the country.

MYCK stands for Malt-extract Yeast Chloramphenicol Ketoconazol, a combination of primary colours.

Pradip Overseas, whose turnover in 2010-11 was Rs 2,100 crore with a PAT of Rs 69 crore, has also earmarked an advertisement spend of Rs 25.5 crore this year. Its sales in the first quarter of the current fiscal were Rs 600 crore with a CAGR of 20 per cent year-on-year. As of now, about 60% of its revenues come from exports to the US, Europe and 20 other countries.

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