Incorporated in 1993 by Naresh Bhandari, Bhandari Hosiery Exports Limited (BHEL) is a garment manufacturing company having vertical production facility to produce high-fashion knitted garments.
Nitin Bhandari, Chairman and Managing Director of BHEL, shares insight on their journey over the years, and the performance of the company in the last few years.
How has been the year 2014-15 for Bhandari Hosiery in terms of performance compared to previous years?
Last year was a very challenging year for us. We were undergoing complete modernisation of our fabric division. We had to make sure our project expansion should be complete on time, simultaneously we had to also make sure of timely delivery to our clients. We were facing a lot of hurdles as we had to stop the fabric and garment production many times due to ongoing expansion work. But with the efforts of our team and the understanding our of customers we were able to increase our total turnover to Rs 124 crore, an increase of 11 per cent as compared to Rs 111 crore for the year 2013-14.
Give us some details on the projects of expansion & diversification completed in the last few years.
Last year we have upgraded and expanded our fabric division from 4 tpd productions to 10 tpd productions with the state-of-the-art technology available in the world. With the recent expansion, we are equipped with latest modernised machinery for fabric dyeing and robotic technology for color mixing. In terms of product range, we are more focused towards high-value fabrics like viscose and lycra. With the latest machineries in place, we will have significant increase in top line and profit margins.
What are the new projects of expansion in hand? Give some details of how it will reflect on the company´s future?
We are working on two projects: First is a special line for active and performance wear fabrics and the second one is yarn dyeing and sewing thread. We expect to complete these projects in two phases. In the first phase, we aim to put into commercial production by March 2016. And the second phase by March 2017. The projects will have an investment of about Rs 40 crore. Almost 60 per cent of the money would be raised through the banks and rest will be contributed by promoters. We have a good land bank in the heart of the industrial area of Ludhiana, Punjab, and our new unit will be set up in the same premises. As a result, we would be saving a lot of money on project cost now and in the future as well. Down the line in three years, we expect to achieve a turnover of Rs 350 crore.
In two decades, Bhandari Hosiery has come a long way in the textile chain. How did it all start and how was the journey all these years?
Bhandari Hosiery was incorporated in 1993 by Naresh Bhandari. An industry stalwart, he was among the first to start garment exports from Ludhiana in 1980s. The company is primarily engaged in manufacturing and exporting of knitted fabric and garments. It is strategically located in the textile hub of Ludhiana. The company over the years has come up the value chain and is now producing high value fashion knitted garments for global brands.
What are the breakthroughs and achievements you consider worthy of talking when it comes to Bhandari Hosiery developments in production & export over the years?
We were one of the companies to start exporting to Europe when the whole world was focusing on the Russian market. We have given the industry many breakthrough fabrics in the circular knitting category. We have recently expanded and modernised our fabric plant and all the thrust has been on renewable technology. The liquor ratio of our machines is 1:3 agains