VEDPRAKASH CHIRIPAL, Chairman of the Chiripal Group of companies that includes leading denim manufacturers Nandan Denims and Vishal Fabrics, talks of the group’s journey so far and its long term goals
Please take us through the journey of the Chiripal Group, from 1972 to today, and give us an overview of your present businesses, manufacturing plants and facilities.
Chiripal Group started in 1972 in Ahmedabad, with a few power looms. Today, it is a group of companies that represent a comprehensive textile house, and has diversified into plastics, films, denim fabric and recently the educational segment as well. Though based in India, it is a global conglomerate comprising Chiripal Industries Ltd (fabric division), Chiripal Industries Ltd (petrochemicals), Nandan Denim Ltd, Vishal Fabrics Ltd, Nandan Terry Limited, Chiripal Poly Films Limited and Vraj Integrated Textile Park Ltd, which operate in a variety of industries including petrochemicals, spinning, weaving, knitting, processing, chemicals, education, real estate, terry towel and infrastructure. The Group employs about 25,000 individuals either directly or indirectly.
What is the outlook on the denim front? Tell us about your sustainability initiatives and goals. How have you achieved sustainability as a denim manufacturer, as it is a process famous for water pollution and consumption?
With Nandan Denims, we have been consistently pushing the boundaries to reach and acquire more markets with partnerships with domestic and global brands. Vishal Fabrics is another leading denim manufacturer under our group. Our group is associated with some of the most renowned fashion brands in the industry, and our denim business in India has grown rapidly over the years, fuelled by increased manufacturing capacity and agile technological adoption.
Chiripal Group has been committed to bringing about sustainability and developing environmental initiatives in the regions surrounding its manufacturing plants and facilities. Our group has made every effort to reduce, recycle, and reuse waste. The proportion of reusing and recycling among our denim verticals like Vishal Fabrics is 5-10%, and we are in the process of replacing outdated machinery with modern equipment to reduce waste. For sampling and research, we employ a go-green washing machine, which uses water spray technology to save water each year. As an alternative to synthetic dyes, eco-friendly dyes are used. We also have a large green cover around both the plant and the industrial park.
You have a substantial export market. Which countries are your prime buyers and how is the market faring now post-pandemic?
The group relies heavily on its export business, especially the US and European markets, as they make up for a large consumer base. Consumers in the US and Europe tend to change wardrobes with change in fashion trends. Post the pandemic, there has been a significant impact on the business environment, with added pressures on credit availability and margins. However, resting on our strategic abilities, we continue to grow and improve our profitability and performance.
How do you see the denim industry evolving in India and globally? How do you see the China Plus One strategy playing out for the textile industry?
The denim industry in India is already evolving in multiple ways. Denim producers across the world are looking to India as a developing denim export market because of its first-rate standards, low costs and a large pool of talented workers. The denim industry in India is being pushed by rising disposable incomes, Westernization of work culture, and the resulting increase in the appeal of denim jeans. The middle and working class are driving the denim boom.
The adoption of the ‘China +1’ strategy will further equip the Indian market to invest and also assure its continuous expansion and boost the denim industry's growth. The domestic markets for denim have grown significantly in recent years. Indian denim companies and producers are concentrating on expanding their global exports. Along with an increase in potential, supportive trade policies and favourable currency rate changes might help India achieve a significant increase in exports.
How was your FY 21 performance? Going forward, tell us about your long term growth strategy.
The Chiripal Group of companies has a group revenue of more than Rs 10,000 crore, with several verticals showcasing a robust performance in FY 21. While the pandemic posed many practical challenges for the textile sector, we were able to sail through, owing to our resilience and quick adoption of changing market trends. With a firm strategic vision, we currently have a net worth of Rs 2500 crore, with all the group companies combined. Our long-term growth strategy includes expanding our footprint in both local and overseas markets.