BSL plans to reach a turnover of Rs 900 crore in FY 2023-24
The company plans to commence its cotton spinning project of 30 thousands spindles by December 2022 which will increase its revenue by 275 crores annually.
BSL, one of the most prominent players in the textile business has planned a multi-faceted exponential plan. The Company is planning to double its sales to over Rs 900 crore by 2023 -24 from the current Rs 450-500 crore.
BSL delivered a robust performance in the H1 ended September 30 with a PAT of Rs 7.81 crore and operating profits of Rs 24.05 crore. The company has global presence in over 50 countries along with Pan-India presence and expects its sales to grow by 30 -40 per cent Y-o-Y with quantum jump in the bottom-line.
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.
Talking about the H1 performance and expansion strategies, Nivedan Churiwal, Managing Director, BSL says, “We are glad to announce that our business grew across all segments both in domestic and export markets and we have delivered good results in the current H1. In the current FY, we expect good growth in all segments and we are targeting a turnover of close to Rs 550 crore with a very healthy bottom-line.”
BSL has planned Rs 200 crore of Capex, with Rs 150 crore dedicated to the establishment of their cotton spinning unit. The facility will have 30,000 spindles and will be capable of generating 700 tonne of cotton yarn every month. This project is scheduled to begin in December 2022. The remaining funds will be used to expand the company’s PV spinning, weaving, and processing capabilities. The state of the art production facility is equipped with the best machinery in the world coming from various countries such as Japan, Belgium, Germany and Switzerland etc.
In addition, the company owns two domestic brands, BSL and Geoffrey Hammonds (GH). GH is the premium range, whereas BSL is for the mass market. BSL has significantly improved its product range and market offerings, particularly for domestic customers. It now provides a very expansive range, especially under its premium brand GH where they expect to more than double the sales between 2022 and 2024. The current focal products are pure wool and poly wool fabrics, as well as ethnic wear in the form of Jacquards. The luxury market is being given special attention, with the launch of GH-Insignia, a new direct to retail brand.
The company has made a substantial shift and move towards sustainability by moving away completely from fossil fuel towards sustainable sources of fuel. The company has completely stopped using coal base fuel and now using sustainable bio fuels such as mustard husk, rice husk etc. It is working on expanding capacity in generating more energy through renewable sources of energy. The organisation is committed to environmental sustainability and is one of the few to have reached milestones such as ‘Zero Discharge Certification,’ ‘OEKO-TEX,’ and numerous certifications such as ‘Vegan Certification,’ among others.