Suditi Industries is a vertically integrated company that manufactures apparels. The company ventured in the retail segment a few years ago.
Speaking to CNBC-TV18, Pawan Agarwal, CMD of Suditi Industries said he expects the company to do Rs 500 crore annual revenues in 4-5 years.
He also said, by the end of this year company's revenue will touch Rs 100 crore.
The company is looking to increase focus in the retail segment and expects 75 percent revenue to come from that segment.
"There are no concerns regarding the storing capacity and we are looking at more brands coming up in the near future," said Agarwal.
Below is the verbatim transcript of Pawan Agarwal’s interview to Reema Tendulkar & Nigel D'Souza on CNBC-TV18.
Reema: Do you have sufficient capacity, could you give us the sense of what the company’s total capacity is and as you eventually scale up to 75 percent of your revenues coming in from retail versus 50 percent currently how would the company’s financial metric change? What would be the revenue growth, any projections on margins?
A: As far as the manufacturing capacities goes we still have a large portion which we can use for the retail. So, just to give you an idea we churn out about 10,000 kilos of fabric everyday which is good enough for about 50,000 units of garments. So, we are not really concerned about the capacity as we go forward. What we are looking at is to grow the retail business aggressively. I would say in the next four to five years we are looking to grow the company to a Rs 500 crore company.
Nigel: Let me get this right, currently what are you doing, you are doing Rs 100 crore currently?
A: We should be ending a Rs 100 crore plus this year.
Nigel: And Rs 500 crore in how many years?
A: Within four to five years.
Nigel: Will that be some inorganic growth or do you have it in your current capacity?
A: I don’t think it would be inorganic, we have been laying the foundation, we have the top management in place, the infrastructure is in place, so you would see aggressive growth as we go forward.
We have just started Youwecan last year and the growth is yet to come. We are looking at some other brands as well, so I really wouldn’t say it would be inorganic and we have the top management in place for that already to handle this kind of a growth.
Reema: What would your margins look like then with revenues of Rs 500 crore?
A: Margins would improve obviously, I cannot really give you any figures as such but I can tell you there will be a healthy growth and a healthy margin as well. Like I said we already have top management in place to handle this kind of a growth and we have made our inroads into the market, so from here it can go anywhere.