The textile industry is currently estimated as $ 120 billion, is expected to reach $230 billion by 2020. In an exclusive conversation Vinod Kumar Gupta, Managing Director, Dollar Industries Ltd talks about growth in this segment.
Highlight the journey of Dollar Industries in the Indian market so far. What are key learnings gained out of the market?
In 1973-74, when Indian Textile Industry experienced different export performance for the period of Pre Economic Reforms, Shri Dindayal Gupta, Chairman, Dollar Industries Limited started his proprietary firm, Bhawani Textiles on the same year.
In the year 2000, Bhawani Textiles established Dollar Foundation to carry CSR (Corporate Social Responsibility) activities. After walking a long and decisive path of notable revises in hosiery orb, Bhawani Textiles turned in to Bhawani Textiles Ltd. in 2005 and in 2008 Bhawani Textiles Ltd. became Dollar Industries Ltd.
The Company’s sensible investments in manufacturing assets distinguish its products from its peers. Dollar’s young asset quality has helped it to reap multiple benefits. The focus is to be the best integrated hosiery textiles company with the ‘smallest Balance Sheet’.
Investment in proprietary manufacturing facilities helped Dollar add value to their bottom-line. Approximately 30% of our sales were derived from captive consumption. Also, introducing manufacturing units include services like Spinning, Knitting, Bleaching, Dyeing, Garmenting and Branding has boost the production.
Dollar’s always had a brand driven approach, from Endorsing Akshay Kumar as the brand ambassador for almost nine years to steady premiumisation of products. The company always introduced aspirational products at pocket-friendly prices.
We diversify into multiple categories, as the main focus is on Customer choices and preferences. Offering more choices in terms of products, sizes, styles and colours, categories like Men’s innerwear to children and women’s wear.
What is your assessment about Hosiery sector in India. According to you, what are the factors propelling growth in this segment?
With a strong multi fibre base and abundant supply of raw materials like cotton,wool,silk,jute and manmade fibres, India enjoys a distinct advantage of backward integration which many country do not possess. Indian textile industry contributes 2% to India’s GDP, 10% of manufacturing production and 14% to overall IIP(Index of Industrial production).
The industry is labour intensive and employ approximately 45 million people directly and approximately 20 million people indirectly. The textile industry is currently estimated as $ 120 billion, is expected to reach $230 billion by 2020.
Indian Inner Segment Overview
- Total apparel and textile industry size in FY2017-18: Approx. $200 billion
- The Industry’s CAGR growth rate during FY 2009-10 to FY 2014-15 - 11%
- Men’s Innerear market: 40%
- Women’s innerwear market: 60%
- Cumulative CAGR growth in sales of branded innerwear companies:15.2%
- Cumulative CAGR growth in net profits of branded innerwear companies: 22%
- CAGR growth rate for next 5 years: 13%
- Size of India Apparel and Textile market by 2023: $595 billion
(Source: Dollar’s Annual)
Kindly shed light on the current distribution of Dollar Industries. How do you plan to grow your network in the time to come?
Our dealership network is our strength. We have more than 900 dealers over 1 lakh MBOs across India. We constantly push our products to the remotest markets in India. We are planning to expand globally and domestically by the next fiscal year.
Kindly shed light on your Omnichannel strategy?
Yes, we are into omni-channel retailing since long. We have pushed our product from various social media pages as well as display networks, taking the consumers directly to various e-selling platforms. Thus, enabling them to access our products as per their convenience. Our growing business in e-commerce for the past 4 years is an evident point towards the success of our omni channels.
Kindly shed light on key innovations that the company has adopted in the recent past in the area of product and customer experience?
When it comes to products, we have a wide range of products such as Bigboss, Missy, Force NXT, Thermals; etc. This has enabled us to cater to more masses. Moreover, the availability of Dollar products at all e-commerce platforms as well as our very own website has enabled us to enhance sales as well as customer experience. Dollar has always been one step ahead when it comes to design and comfort. We have wide range of new designs, style and cut which consists of narrow cut, cut & sew, printed and embroidery.
Athleisure is the latest trend in the Indian market. How company is capitalizing on same.
The Athleisure collection is made with a combination of high grade combed cotton and elastane with various colour options to choose from. We have introduced pastel colours such as brown, olive, mélange and some darker shades like black, blue, etc. which makes this collection more trendy than any other in its class.
Kindly highlight your global expansion plans.
Dollar products are available across India catering to masses. Dollar Industries has the widest range of offerings, which is popular not just in India but also in Middle East and Gulf countries, Nepal and is spreading its wings to Africa. The company plans to become one of the most popular brands in knitwear segment in Asia. We are one of the few organizations in hosiery to have end to end manufacturing units. We keep on increasing our strength from time to time by including international mechanism and state of the art units.