In conversation with Anand Mangal, Managing Director, Lagnam Spintex Ltd

Lagnam’s quality products and increase in selling price with high global demand attribute to our growth in profit, asserts Anand Mangal, Managing Director, Lagnam Spintex Ltd

What is your outlook on the textile sector? Also, what are the global opportunities that you are focussing on?

With China + 1 strategy, the entire textile sector is in a growth mode. We are currently exporting to the quality-conscious market of Bangladesh, Turkey, Argentina, Peru, and European countries such as Portugal, Germany, Belgium, Netherlands, Poland, etc.  

Lagnam Spintex’s net profit for Q3FY22 zoomed 107 per cent at Rs 9.40 crore as against Rs 4.54 crore recorded in Q3FY21. What factors are responsible for this stellar performance? 

Lagnam’s quality products and increase in selling price with high global demand attribute to our growth in profit. Along with this, there are multiple initiatives to control our costs of raw materials, electricity, etc., which directly add to our bottom line. The government’s RoDTEP Scheme i.e. Remission of Duties & Taxes on Export Products has definitely given a big boost to our export and profit as well. 
 
With inflation leading to a rise in input costs, are you implementing any cost rationalisation measures to safeguard profit margins? Also, what are the other challenges that you are facing currently? 
Some of the input costs like freight, etc. are passed down to the customer. On the other hand, the major cost of raw materials, which is at an all-time high, is a concerning matter for the entire textile industry. For safeguarding against this rise in prices, we are very diligent in our raw material procurement process as our team is frequently visiting the market and buying the best raw material at the optimised price.  
 
What are your Capex plans for FY23?  
We are planning to invest Rs 218 crore to double our turnover in quantity as well as to enrich the product mix of the company to improve the value addition further. This installation of 41,472 spindles of 100 per cent cotton compact yarn will be completed by April 1, 2024.   
 
At the moment, what are your top three strategic priorities?  
Our top strategic priorities are:  
•    Continue to grow our global presence. 
•    Increase value-added products wherever possible! 
•    Optimise various costs to keep us competitive.