BSL expects foray into cotton spinning, revamp of domestic operations to boost topline

Homegrown textiles and fabric maker, BSL Ltd (formerly Bhilwara Synthetics Ltd), is looking to increase sales to Rs 700 crore by FY24 as it eyes consolidation in export markets and a greater presence here.

A foray into cotton spinning on the back of a Rs 70-crore capex, a revamp of its India ops, and the launch of branded offerings in the home furnishings space are expected to be amongst the topline drivers.

The company has laid out plans for reworking its India operations since 2020. However, these were put on the backburner, with the pandemic causing closure of key markets.

Exports Push

While Covid-19 did slow down some export markets, “derisking” helped to reduce the impact on the company, which has a presence in over 60 nations across categories such as suiting and furnishings.

Nearly 70 per cent of its revenues continue to come from exports, across segments such as suitings and furnishings, in West Asia, Latin America and the European markets.

Furnishing (exports), approximately a third of its turnover, saw good growth, driven primarily by supplies to IKEA, which accounts for 15-20 per cent of its topline.

According to Managing Director, Nivedan Churiwal, “container availability” and “pile up on the high seas” continue to exert some pressure on the export front.

“However, we are tapping new markets and looking at branded offerings in home furnishing as an extension,” he told BusinessLine .

With markets opening up across the world and in India, sales in July to September are expected to be better across regions and improve quarter-on-quarter.

“I believe we can exponentially increase the turnover by FY24 to around Rs 700 crore, with export markets opening up again and a revamp in Indian operations happening,” Churiwal added.

Revamping India Ops

Indian operations are being re-jigged with teams being re-located across target markets. The company’s portfolio of unstitched fabrics is being pushed in A, B and C category towns; targeting tailoring shops and premium-end bespoke players. Brand extensions are happening with the launch of premium direct to retail brands.

BSL has also finalised a capex of Rs 70 crore – to be funded through internal accruals and bank loans – for setting up a cotton spinning mill at its existing facility in Bhilwara, Rajasthan.

Orders for the plant have been placed and a new line is expected to go on stream by August–September 2022.

Plans are also afoot to launch own branded home furnishings offerings competing with the leading existing brands. Soft launches could happen post September this year, with pan-India launches expected around April 2022.

“The spinning mill will give us an advantage in both domestic and international markets and the thrust on the domestic and furnishings business both in India and overseas,” he said.

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