The Himatsingka Group is a vertically integrated home textile major with a global footprint. The group focuses on the manufacturing, retailing and distribution of home textile products. With an installed capacity of 25 million metres, the group operates amongst the largest capacities in the world for producing upholstery fabrics, drapery fabrics and bed linen products.
Spread across Asia, Europe and North America, its retail and wholesale distribution divisions carry some of the most prestigious brands in the home textile space and caters to private label programs of major retailers across these geographies. In India, the group has two manufacturing units with state-of-the-art and vertically integrated facilities.
Founded in 1985, the Himatsingka Group, with its team of 4,500 people, focuses on design and product development with world class manufacturing facilities and an efficient supply chain process to ensure highest level of customer service in the industry.
The group has its strong presence in North America (the US, Canada and Mexico), which is the largest market for retail and distribution of the group’s brands, where revenues stood at 84.6 per cent of consolidated revenues of the group. Its subsidiaries in the North American market are DWI Holdings Inc. (DWI) and Divatex Home Fashion Inc. (DHF), who are producers of luxury home textiles. These subsidiaries cater to private label programs of major retailers, in addition to marketing their licensed and owned brands.
The brand portfolio of the group for the North American market includes its own brand Bellora and licensed brands such as Calvin KleinHome, Barbara Barry, Peacock Alley, Esprit and Waverly. The Calvin Klein Home brand is currently the second largest-selling bedding and bath brand sold through departmental stores in the US.
The Himatsingka Group also has a strong presence in Asia and Europe through its Atmosphere and Bellora brands respectively, where it operates through its exclusive stores, high-end multi-brand outlets and department stores to reach the end customer.
Its brand ‘Atmosphere’ in Asia, with its 14 exclusive stores across India, the UAE and Singapore, saw a growth of 7.9 per cent in its revenue in 2012-13. The group has been focusing on building its product portfolio and enhancing global reach through its e-commerce platform “atmospheredirect.com”. The platform which offers the entire range of products, including drapery, upholstery, bedding and other accessories, is available across 35 countries and will give the brand visibility over time. However, the company’s brand ‘Bellora’ in Europe witnessed a decline of 23.7 per cent during 2012-13.
During the year, the company’s revenue from its brands and private label portfolios grew by 22.1 per cent. Consolidated revenue of the group grew 18.6 per cent to Rs. 1,698.41 crores as compared to Rs. 1,431.62 crores in the previous year. Profit after tax grew by 73.4 per cent to Rs. 57.32 crores (Rs. 33.06 crores). Revenues from the bed linen manufacturing business increased by 12.4 per cent and its capacity utilization stood at 82 per cent for 2012-13.
The drapery and upholstery manufacturing business faced a downward trend of 3.8 per cent with a capacity utilization of 45 per cent. The spun silk manufacturing facility of the company, equipped with best-in-class spinning equipment, specializes in manufacturing spun silk and silk blended yarns. This division predominantly caters to the niche requirements of the drapery and upholstery manufacturing division and also to selective clients.
The Himatsingka Group has invested in four key areas which will strengthen its global leadership in the home textile industry, as a part of its vertical integration. The company’s in-house design and product development capabilities are considered amongst the best in the world. With strong infrastructure across North America, Europe and India, the group is planning to bring out over 2,000 new products annually. Its large capacities and state-of-the-art manufacturing facilities are equipped to handle over 20,000 SKUs in order to meet the varying specifications of its global clientele.
Opportunities and initiatives
With significant growth in global textile and apparel trade, the group has huge potentials to tap new markets like China and Brazil. With the group emerging a preferred vendor in several cases, there are opportunities to offer multiple product categories to the clientele currently sourcing only a single category of product from the group. The company believes that the shift in manufacturing activities to the East will continue, thereby positioning countries like India to be desirable sourcing hubs catering to the growing global demand.
The group continues to explore various ways of reaching out to new customers, enhancing focus on its brands and launching value-added products leading to the growth in sales. The retail business ‘‘atmosphere” launched its first online store ‘‘atmospheredirect.com”. This e-commerce initiative is part of its overall focus to expand its customer base and provide an enhanced shopping experience.
As part of an overall initiative to enhance the operational and financial cohesiveness in the business the company has implemented an ERP package for all locations of its manufacturing and retail divisions in India.
At the beginning of the year, the company held through its subsidiary Himatsingka America Inc., USA (HimA), 80 per cent shareholding in Divatex. During the year the company acquired the remaining 20 per cent stake from the minority shareholder and currently has 100 per cent shareholding.