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In interaction with Gaurav Davda, Head, Corporate Finance & Strategic Initiatives, Jindal Worldwide Ltd

Geyatee Deshpande
/ Categories: Mindshare, Interviews
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In interaction with Gaurav Davda, Head, Corporate Finance & Strategic Initiatives, Jindal Worldwide Ltd

Speaking with DSIJ,  Gaurav Davda, Head, Corporate Finance & Strategic Initiatives, Jindal Worldwide Ltd states that for the company, the important strategic focus is backward integration, which shall enable it to save on the conversion margin thereby, improving returns to the shareholders.   Following is the detailed discussion:

What is your growth strategy in place to increase market share across product segments? 

Our growth strategy has always been based on innovation and building excellence in our set of products. Disciplined and sustainable growth has been our approach to aspire for market leadership in our respective segments. After the initial setback due to the onset of the pandemic, we geared up our utilisation capacity and rationalised our supply chain to meet the demands of both domestic as well as export markets. 

Our aim is to increase our SKUs in each of the product categories thereby, being able to service all our customer needs. Additionally, a key focus on exports has worked very well for us. We hope to lay larger emphasis on exports as we see this as the next driver of growth for the Group. 

We hope to increase capacities by approx. 20-25 per cent across all our product lines. We are also looking to more than double our FY20 revenue in the next 3-5 years. 

What are the new product launches that investors should look forward to in 2021? 

New products in FY21-22 shall be a deeper offering of all our existing products. We are looking to offer higher value products and a greater number of SKUs to be able to service the domestic as well as the international markets. 

We aim to offer products in the premium segment so as to be able to improve our margins. 

What are your top three strategic priorities right now? 

For the coming fiscal year, we would like to focus on further expansion of our production capacity in denim as demands are rising for denim fabric. In addition, we are looking forward to enter into the technical textiles vertical in the next 12-24 months and also focus on increasing our export footprints in newer geographies. Another important strategic focus is backward integration, which shall enable us to save on the conversion margin thereby, improving our returns to the shareholders. 

 What is your outlook on the textile industry? 

In the last decade, the textile sector has mostly remained static; however, it is changing now with a few spurts of growth. There have been movements in terms of a steady increase in demand from global buyers for fabrics as well as garments. The changing geopolitical landscape and preference of buyers away from China have already started to act as a growth catalyst favouring the Indian textile sector. Time is apt to make a quantum leap in terms of technology and infrastructure upgradation. To boost textile manufacturing and investment in the sector, mega-investment Textile Park along with the establishment of seven more textile parks over the next 3 years will be instituted by the Government of India. This, along with the PLI scheme, will help in bringing in plug-and-play infrastructure and attract more global textile buyers to India. Overall, the textile sector is poised to become more competitive globally, going forward. 

What are your major growth triggers? What is the growth outlook for Jindal Worldwide?

The demand for casual wear across the globe is and will continue to be a key growth trigger for us. In the past few months, we have seen an increase in demand for various types of denim from our partner brands. The same trend is prevalent in tier 2/3/4 towns and cities as well. This has definitely driven the growth of the company in the last few quarters. 

Similarly, we want to become a company that offers extra value to its customer. Hence, we will be constantly looking at expanding our product portfolio so that our partners perceive us as a one-stop solution for all their fabric requirements. 

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