Nahar Industrial Enterprises Limited reported on Thursday that its fourth quarter net earnings rose four-times due to cost cuts and involvement from value-added products.
Kamal Oswal, Managing Director told reporters that the textile manufacturing firm, a trader to worldwide retailers such as Gap Inc. and Marks & Spencer Group Plc., also plans to expand retailing of its own brand across Southern India.
India is becoming a major market in itself in organized retailing and they wish to get to lesser towns throughout the nation with superior cloth at a realistic price, said Kamal.
Its ready-to-wear outfits are being sold as 'Cotton County' in 80 authorised outlets in North India, intends to swell the set-up to 200 outlets in March 2007, he informed.
It had predicted the retail growth, exports and increasing supplies to Indian textile companies such as Madura Garments and Raymond Ltd. to aid double its proceeds to Rs15 billion by 2010.
Company had also extended its range to value-added products such as lycra-yarn to enhance expansion, he said. For 2006/07, the firm expects to boost its net earnings to Rs1.08 billion from Rs804.7 million in 2005/06.
Within the fourth quarter that ended in March, Nahar's net revenues jumped to Rs328.8 million from Rs74.4 million a year ago and the sales placed at Rs1.81 billion.
Kamal anticipated resolving its enduring development of the textile division within two years.
The Rs8 billion strategy occupies growing fabric making from 100,000 metres per day to 250,000 metres, doubling-up of processed fabric production from 100,000 metres and setting up a 58-megawatt power plant.
Indian textile firms are speedily growing as worldwide retailers start on to spotlight on lesser suppliers and nations for sourcing subsequent to the elimination of allowances.
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