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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (9334)	11/4/1999 4:39:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Himatsingka Seide annual turnover expected to go up 30% himatsingka.com Our Bureau (BusinessLine) MUMBAI, Nov. 4 HIMATSINGKA Seide Ltd is expected to increase its turnover by 30 per cent to Rs. 110-115 crores for the year ended March 31, 2000, compared to Rs. 84.80 crores the previous year. Net profit is projected to increase to Rs. 40 crores from the previous year's Rs. 29 crores. Gross profit is seen edging up to Rs. 50 crores (Rs. 38 crores), Mr. Dinesh Himatsingka, Managing Director of the company, said. The company is planning to augment silk fabrics production capacities primarily through internal accruals. Mr. Himatsingka said the company plans to retire its external commercial borrowings of about Rs. 23 crores from February to May 2000 from its internal accruals. "As we are flush with funds, we hope to finance all future growth activities entirely through internal accruals," he said, thereby denying plans to get into the capital market in the near future. "We want to establish a strong presence in the blended fabrics market by leveraging current strengths," he added. The 12-year-old company has been growing at a compound annual rate of 22 per cent over the past five years. The company recently got into backward integration in silk and blended yarns. According to Mr. Himatsingka, the company expects to benefit from the increase in demand on account of the millennium. Currently, India's exports of silk goods stand at Rs. 950 crores, of which fabrics and yarn account for Rs. 350 crores. The company annually exports fabrics and yarn to the tune of Rs. 110 crores. Mr. Himatsingka said that though China continues to be the biggest player in the global silk market, India faces competition from other silk exporters such as Italy, Switzerland and France. He said the company's expertise has been on adding value, and that it moved into silk-blended fabrics in 1998. He added that the company would continue to leverage on its competitive advantages and maintain high operating margins.