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Vardhman modifies strategy, diversifies portfolio

Vardhman is among the biggest names in textiles in India, with one of the largest spinning and fabric capacities.

This textile giant has rapidly modified its business strategies to carve its own niche regardless of the presence of several small- and medium-level players with the shortest lead times.

Vardhman has been able to sustain its volume by adding new customers and shortening production lead times which was possible due to a big in-house production capacity from yarn to fabric.

Vardhman has also bounced back significantly by diversifying into many new products which it earlier did not have, effectively recovering its lost ground. A few years back, it started its liquid ammonia plant. Last year, it added a printing plant. The product basket is diversified. It is now not only in cotton but creates blends like cotton Tencel stretch, cotton modal super stretch and difficult products like bi-stretch. These are the types of products which are in demand in the women’s wear segment.

With India being the hub of raw materials like Tencel fiber and different types of yarn, these product variations were not difficult for Vardhman. It is now producing 100 per cent Tencel, 100 per cent modal and is very competitive in terms of lead time as compared to China. The company’s focus on basics or core programs still accounts for 70 to 75 per cent of its total volume as it has a huge capacity build-up.