The Ahmedabad-based company is also encouraged by the two “exceptional quarters” in the first half of this fiscal, in which it has crossed a top-line of Rs 697 crore, said Vishal Fabrics CFO Vinay Thadani.
Like other companies, Vishal Fabrics, part of Rs 10,000 crore conglomerate Chiripal Group, had taken a hit in its revenue in the pandemic impacted FY21, but has now recovered.
“This year, we have already completed Rs 700 crore and we have a target to close this fiscal between Rs 1,400 to Rs 1,500 crore; and with the added capacity, we are targeting around Rs 1,600 crore next fiscal. In the next three years (FY 2023-24), we see Vishal Fabrics as a company having a Rs 2,000 crore plus top-line, “Vishal Fabrics CFO Vinay Thadani told PTI
For the fiscal year ended on March 31, 2021, the revenue of Vishal Fabrics was Rs 967.54 crore. Its revenue from operations in the pre-pandemic fiscal year FY 2019-20 was at Rs 1,296.84 crore.
Vishal Fabrics caters to the premium and the super-premium end of the denim segment.
“Our realisation of per meter in the fabric is around Rs 200 and in the last quarter we had closed at around Rs 215, whereas comparing to this our peers have a realisation range between Rs 90 to Rs 140 only,” he added.
According to Thadani, consumption of denim is on the rise in the country as it is now penetrating at the bottom level of the consumption pyramid at tier III, IV and V places, he said.
“Ten years back, the market for denim was only tier I & II cities but now adaptability of denim as a garment increasing in tier III and below places. Even in rural India denim is adapted very fast,” Thadani added.
India is one of the fastest-growing denim markets, where the domestic market has a CAGR of 8 to 9 per cent as compared with 4 to 5 per cent of denim as a fabric in the global market, he said.
“We are focusing on the domestic market and are hopeful that when the domestic market, particularly in the rural market, when the adaptability is going to penetrate, it would have a huge demand potential in our country,” Thadani said.
The company is also expanding its overseas presence by adding new markets in Latin America and Europe.
“This fiscal, we are looking for a 10 per cent contribution from the export segment. From next fiscal year, we have a target of around 20 per cent,” he said adding that the company would follow an optical mix of 80:20 from domestic and exports in its top-line.
The company wants to remain domestic centric, Thadani added.
Vishal Fabrics was exporting to 12 countries, mostly Asian, till last fiscal year and this fiscal year, it is targeting a few European countries and Latin America, he said.
When being asked as to whether Vishal Fabrics had any plans to come into the B2C segment with its in-house label into the denim market, Thadani said: “No, we do not have any plan to go into garments and apparels. We would be catering to B2B segment only.”