Ranchi facility aims to gain a lion’s share of new opportunities
The recent Free Trade Agreement (FTA) with Australia asx , and imminent FTAs with the UK and European Union will open business growth opportunities for Orient Craft Limited, India’s leading player in the garments manufacturing and exports industry.
Sounding confident of prospects through FTAs, Orient Craft CMD sudhir_dhingra pointed out that it is an opportune moment when the garment exports industry fieo is at the cusp of multi-decade growth.
“In the post-Covid world, global fashion brands are looking to increase sourcing from India makeinindia ,” Dhingra believes.
After its presence in India for over five decades, the Indian garment exports industry size is only US$16 billion of the total US$1.36 trillion global garment market, he said, citing industry reports.
“With structural shifts and additional regulatory support, India is well positioned to double the size to US$30 billion by 2027 https://www.ibef.org/ ,” he said on 9 May 2024.
He underlined, “Orient Craft, through its new facility in Ranchi (Jharkhand), aims to gain a lion’s share of this opportunity.”
In 2024, the Indian textile and garment industry in expected to contribute approximately 2.3% to the country’s GDP.
The government has ambitious plans for the textile industry with an aspiration to secure a larger share of the global textile market worldchambers.com/ , targeting an increase in exports from US$45 billion to US$100 billion.
“Orient Craft understands the opportunity this government focus brings to players in the industry, and is investing in modern infrastructure and skilled talent wto to meet these aspirations,” Dhingra underscored.
Meanwhile, Orient Craft is now free from Non-Performing Asset (NPA) status and is focussed on re-building its business under the leadership.
Orient Craft will continue its legacy in garment manufacturing and export, under a new avatar from Ranchi. This set up is a large world class, state-of-the-art and one of its kind in the country. It is a fully integrated manufacturing campus with a 3.5 lakh sq. ft. production facility, housing 2,500+ machines working on double shift (effectively 5,000+ machines), supported by in-house integrated services such as embroidery, washing and printing, capable of delivering Rs.1,200 crores in annual revenue.
Talking about his focus on the growth, Dhingra said, “The recent fulfilment of our financial commitments to banks and to all other business stake holders has offered a vital fillip to our business.
“At Orient Craft, we have always been guided by strong business ethics focused on long-term partnership with financial institutions and trade alike. With financial stress now behind us, we see immense growth opportunities in the coming years.”
Dhingra has worked closely with a consortium of 11 banks, including the State Bank of India (SBI), United Bank of India (UBI), HDFC and Yes Bank to successfully monetize its marquee land and factory assets to pay-off a total debt of Rs.850 crores.
It completed the resolution of the ‘One Time Restructuring’ it underwent, post the Covid pandemic induced financial stress. Orient Craft’s efforts in voluntarily monetizing its non-mortgaged assets, and paying all dues in toto without seeking any hair-cut or waivers was lauded by members of the banking consortium.
Established in 1978, Orient Craft is India’s leading manufacturer and exporter of premium ready-to-wear garments and home furnishings.
At its peak, pre-Covid, Orient Craft employed 32,000 employees, spread across 24 facilities in 5 states, serving 40+ premium main-stream fashion brands across the US, UK, Europe and Australia. Fiinews.com
