The Himatsingka Group operates over 10 global brands in the home textile space. Its brand portfolio includes marquee brands like Calvin Klein Home, Barbara Barry, Esprit, Bellora and Atmosphere, among others. During 2013-14, the group generated revenues of over Rs. 600 crores from its major brands. Looking forward, the group proposes to take new initiatives to augment its brand portfolio and expand the distribution network with a view to raising revenues from brands to a level of Rs. 1,200 crores over the next two years.
The Rs. 2,000-crore Himatsingka Group is a vertically integrated home textile major with a global footprint. The group focuses on the manufacture, retail and distribution of home textile products. With an installed capacity of 25 mmpa, it is amongst the largest manufacturers of drapery, upholstery and bedding products in India. The manufacturing facilities are state-of-the-art and vertically integrated.
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 cater to private label programs of major retailers across these geographies. Globally, the group has substantial reach in this space and its products are present in over 7,000 points of sale.
Said Mr. Dinesh Himatsingka, Managing Director, Himatsingka Seide Ltd.: “Our company crossed the Rs. 2,000-crore mark for the first time in 2013-14 with a consolidated net revenue of Rs. 2,028.22 crores as against Rs. 1,689.43 crores the previous year, a growth of 20.05 per cent. The growth in business, coupled with the various initiatives on the cost side, has helped drive a better financial performance. Profit after tax grew by 10.5 per cent to Rs. 63.35 crores as compared to Rs. 57.32 crores the previous year”.
Himatsingka has two manufacturing facilities in India catering to high-end furnishings and bedding products. Its distribution businesses meet the requirements from large box retail formats, institutions in the hospitality and real estate segment, etc.
Retail and distribution business
North America is the largest overseas market for the group. This includes the US, Canada and Mexico. Revenues from these markets stood at 84.6 per cent of the consolidated revenues of the group in 2013-14. The private label distribution business grew 21.6 per cent and its branded business grew 11.40 per cent.
There is stable demand for the company’s brands as well as its private label business. Its heritage brand “Bellora” continues to be high on recall in the Italian markets. The revenues in this division grew by 8.80 per cent, signalling a small positive shift in an otherwise difficult market. To increase the visibility of the brand and to enhance royalty streams, the company has launched the “Bellora” brand in a large box retail format in the US. Bellora stores were opened in Russia too.
The distribution businesses across India and Asia are represented by ‘Atmosphere’. The company has opened an outlet store for this brand in Whitefield in Bangalore as part of its initiative to address a wider customer base. With this it has 13 stores in this division, 11 in India and one each in Singapore and Dubai.
During 2013-14, the Himatsingka Group made significant progress and is expecting benefits from many of the initiatives, some of which are:
• The ‘Vector Flow’ software based on the principle of Theory of Constraints was implemented in the bed linen unit aiming to reduce material wastages, increase capacity and enhance On-Time-In-Full Order deliveries.
• Warehousing consolidation activity was taken up in North America. This is expected to bring in efficiencies in operating costs from the next year.
• Focus on Private Label manufacturing in European markets to reduce reliance on Italian retail sales.
Future outlook
The company has embarked on a program to integrate its various businesses. It has successfully implemented the SAP ERP platform across all its manufacturing and retail locations in India and across its distribution locations in the US.