BSL, formerly Bhilwara Synthetics Ltd, plans to revamp marketing operations and the senior management team to make itself one of the top three manufacturers of suitings and furnishing fabrics in India, according to joint managing director Nivedan Churiwal, who said the company is focusing on improving bottomline now and will go for capacity expansion later.
The financial health of BSL has been good, although the company is making low post-tax profits, Churiwal told a news agency. Last year, he said, the company made a meagre net profit of around Rs. 1 crore due to high interest and depreciation costs in fabrics industry as compared to the trading of garments, he said.
The company plans to achieve a turnover of Rs. 480 crore and an EBITDA (earnings before interest, tax, depreciation and amortization) of Rs. 40 crore in this fiscal, he said. The company expects net profit to be Rs. 5 crore this fiscal.
BSL plans to expand the network of its dealers and retailers and to be present in 5,000 to 6,000 multi-branded outlets over the next two to three years, he said. Churiwal said that the manufacturing capacity of the company is 18 million metres of fabric annually and it wants to grow by 15 to 20 per cent every year. The company has no plans to enter the apparel business, he added.
