MUMBAI, INDIA — The Chinese mills, the closest competitors to Indian suppliers, are gaining a currency driven price advantage over Indian mills which D’Decor is not taking lightly, says Ajay Arora, Managing Director.
The Indian Rupee has seen over a four percent appreciation in recent months against the US dollar which affects the profitability of Indian furnishing fabrics exports, he points out. The Chinese Yuan has depreciated by 0.5% accruing an edge in export pricing, which is beneficial to global importers. D’Decor is the largest home furnishings textiles manufacturer in the world with sales in excess of $250 million. “We are no exception as this Rupee appreciation hits our bottom line. As a result, we are implementing specific strategies to counter this disadvantage while we are also seeking a price increase from the customers,” Ajay Arora says.
“Though international markets are currently subdued the domestic market is doing well and we have now 12 company owned outlets plus eight franchise stores and the focus is on developing high-end retailers to match our superior line of furnishing collections”, he informs.
D’Decor has launched polypropylene and polyester rug collections from Europe and is selling them in the Indian market under the brand name ‘D’Decor Rugs.’ “In addition, for two years we have carved a sizable share of the domestic blinds business through 250 outlets,” says Sanjay Arora also Managing Director and Ajay’s brother. “Over the next three years we want to have at least 50 stores pan India as well expand in global markets, Sanjay says.
“This is an opportunity to become a more efficient mill and our top priority is to focus to be more cost competitive by adopting additional energy saving technologies as well improve our productivity level further,” Ajay Arora says. “For further manufacturing cost reductions, we have added a new production facility of about 250,000 square feet as of August, 2017 bringing our total factory space in Tarapur to 1,172,000 square feet. We have also invested in the latest machines and which includes technology upgrades with wide-width high speed weaving looms.”
“D’Decor has added 64 Tsudakoma/ Somet looms in narrow and wide width; the latest yarn dyeing machines and yarn making machines; the latest fabric dyeing and finishing machines,” he points out. “This is increasing per day production by 20%”, adds Sanjay. “D’Decor has also installed roof top solar panels of 400 KW hence contributing towards Green Energy.”
“D’Decor is also emphasising on input cost reduction such as finding equivalents to viscose fiber that is turning expensive. “We are also launching new product lines like linen looking polyester with innovative fibers and blackout fabrics that will extend our weaving capacity and added a new finishing line, which will give additional fabric finishes”, Sanjay explains. In terms of market trends D’Decor has observed that plain velvet demand is down but jacquard velvets are robust.
During Heimtextil this January in Frankfurt, D’Decor will add new designs in embroidery in new colors, plain textures and foil and transfer prints, he says.
by Vishwanath. S