Himatsingka focusing on design and technology for profitable growth

Himatsingka Seide, a family-owned business with Rs 2,500 crore (sales) a vertically integrated home-textile major with manufacturing operations in India and with global footprint, it have retails across 22 countries. The group is known for its innovative designs and fabrics for upholstery, drapery and bed linen. Started by first-generation businessmen brothers Dinesh Kumar and Ajoy Kumar Himatsingka in 1985, the listed company is a significant player in the home-textile space. Dinesh Kumar Himatsingka and son Shrikant’s focus on design and technology has ensured their company remains on a fast growth track.

The group has always been forward-looking in terms of expanding their product portfolio, acquiring plants and setting up facilities. The company’s focus on fabric, design, drapes and pattern differentiates their products.

The focus on design, technology and scale has provided highly profitable growth for most of the company’s life. Other design-based exporters typically lack the scale and technology orientation in which Himatsingka has invested.

During a business trip to Europe, Dinesh the group managing director had a chance to observe successful textile houses, which applied great technology to quality raw materials, the right yarn, texture and colour to create distinctive products and recognised an opportunity to do one better.
The business got a boost when Dinesh’s son Shrikant joined in 2001. Today, much of the expansion and new initiatives are overseen by him.

The company invested Rs 1,200 crore between 2006 and 2008, as part of its expansion plan. In 2007, it invested $125 million (Rs 535 crore) to set up a new bed linen manufacturing facility at the Hassan SEZ, about 200 km from Bangalore. In the same year, it acquired Italian company Giuseppe Bellora known for its bed linen brands, New York-based home furnishing player Divatex Home Fashions, and DWI Holdings, a licensee of the Calvin Klein Home and Barbara Barry brands.

Himatsingka with a global presence and workforce of over 5,000 has grown at a CAGR of 15-18 percent over the last five years. They hope to continue with this and expand their manufacturing and distribution network. However, with export challenges remaining, the company plans to focus on more selective products, sales channels and innovative selling and merchandising. For fiscal 2013, the company’s consolidated revenue grew 18.3 percent to Rs 1,689.43 crore, while profit after tax was up 73.4 percent to Rs 57.32 crore.