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BSL Ltd is looking to invest close to ₹200 crore to set up a cotton spinning unit and expand and modernise its existing weaving and processing capabilities to grow its business.
The company, which posted a turnover of ₹436 crore in FY22, is looking to grow its revenues by more than 20 per cent to touch ₹500-550 crore by the end of this fiscal.
According to Nivedan Churiwal, Managing Director, BSL, the company is investing close to ₹150 crore in establishing the cotton spinning unit.
The facility will have 30,000 spindles and will be capable of generating 700 tonnes of cotton yarn every month. The project is scheduled to begin in December 2022. The funding would be done through a combination of term loans and internal accruals.
Nivedan Churiwal, Managing Director, BSL (Pic: bslltd.com)
“The new project is likely to be operational by the end of this month and this is likely to generate revenues worth ₹250 crore. So our total turnover is likely to increase to ₹800 crore by FY24,” Churiwal told businessLine.
BSL operates across suiting, furnishing fabrics, synthetic yarn, and exports. It owns two domestic brands, BSL (for mass market) and Geoffrey Hammonds (GH).
The company has been continuously improving its product range and market offerings, particularly for domestic customers. It expects to more than double its sales under the premium brand GH over the next two years.
The products currently in focus include pure wool and poly wool fabrics, as well as ethnic wear in the form of Jacquards. It is also giving special attention to the luxury market with the launch of GH-Insignia, a new direct-to-retail brand.
The domestic suiting business accounts for nearly 20 per cent of its total turnover, furnishing accounts for around 20 per cent, exports for 25-30 per cent and the remaining (30 per cent) comes from the yarn business. Once the new unit is operational, the share of yarn is expected to increase by 40 per cent of its total business.
The company is also looking to grow its domestic and furnishing business and this is expected to contribute to higher revenues and profitability moving forward. For the past decade, IKEA has been a major business and growth driver for the company, and this business is likely to continue to grow.
BSL is IKEA’s sole provider of furniture fabrics from South Asia, and its products are sold in all 450 IKEA stores around the world. “Our growth focus includes yarn and furnishing. We are looking to expand our business with IKEA as well as add more new customers,” he said.
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