Saturday, July 20, 2024

Orient Craft Announces Debt-free Status, Eyes Jharkhand as Next Growth Destination

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Orient Craft Limited, India’s leading player in the garments manufacturing and exports industry, today announced it’s 100% debt-free status. It worked closely with a consortium of 11 banks, including the State Bank of India (SBI), United Bank of India (UBI), HDFC and Yes Bank to successfully monetize its marquee land and factory assets to pay-off a total debt of Rs. 850 crores. It completed the resolution of the ‘One Time Restructuring‘ it underwent, post the Covid pandemic induced financial stress. Orient Craft’s efforts in voluntarily monetizing its non-mortgaged assets, and paying all dues in toto without seeking any hair-cut or waivers was lauded by members of the banking consortium.

Sudhir Dhingra, Founder, Chairman & MD

Orient Craft is now free from Non-Performing Asset (NPA) status and is focussed on re-building its business under the leadership of its founder, chairman & MD, Sudhir Dhingra. Orient Craft will continue its legacy in garment manufacturing and export, under a new avatar, now housed in Ranchi (Jharkhand). This set up is a large world class, state-of-the-art and one of its kind in the country. It is a fully integrated manufacturing campus with a 3.5 lacs sq. ft. production facility, housing 2500+ machines working on double shift (effectively 5000+ machines), supported by in-house integrated services such as embroidery, washing, and printing, capable of delivering Rs. 1200 crores in annual revenue.

Talking about his focus on the growth of Orient Craft, Sudhir Dhingra, Founder, Chairman & MD shared, “The recent fulfilment of our financial commitments to banks and to all other business stake holders has offered a vital fillip to our business. At Orient Craft, we have always been guided by strong business ethics focused on long-term partnership with financial institutions and trade alike. With financial stress now behind us, we see immense growth opportunities in the coming years”. It is an opportune moment when the garment exports industry is at the cusp of multi-decade growth. “In the post-covid world, global fashion brands are looking to increase sourcing from India, Sudhir added.” The recent Free Trade Agreement (FTA) with Australia, and imminent FTA with UK, and European union will also open business growth opportunities.

After its presence in India for over five decades, the Indian garment exports industry size is only $16 billion** of the total $1.36 trillion global garment market***. With structural shifts and additional regulatory support, India is well positioned to double the size to $30 billion by 2027****. Orient Craft, through its new facility in Ranchi (Jharkhand), aims to gain a lion’s share of this opportunity.

In 2024, the textile and garment industry in India contributes approximately 2.3% to the country’s GDP*. The Government of India has ambitious plans for the textile industry with an aspiration is to secure a larger share of the global textile market, targeting an increase in exports from $45 billion to $100 billion. Orient Craft understands the opportunity, this focus, brings to players in the industry, and is investing in modern infrastructure and skilled talent to meet these aspirations.

About Orient Craft
Established in 1978, Orient Craft is Indias leading manufacturer and exporter of premium ready-to-wear garments and home furnishings. Inspired by the power of innovation Orient Craft’s garment design house, is supported by a large and world-class manufacturing infrastructure which delivers broad-based multiproduct offerings across fashion segments, categories and consumer life cycle. Orient Craft has a unique in-house ability for design and product development, which provides superior, comprehensive, product solution to its buyer by co-creating products.

The company is focussed on elevating the power of the garment manufacturing and exports industry in India as a key employment sector. It is doing this by focussing on its own socially responsible growth and its strategic plan to skill and employ a significant number of workers, including differently-abled individuals and un-educated & under-privileged women from local areas.

At its peak, pre-Covid, Orient Craft employed 32,000 employees, spread across 24 facilities across 5 states, serving 40+ premium main-stream fashion brands across US, Europe, UK and Australia.

*Textiles & Apparel: Invest India
**The Textile& Apparel Exports of India: IBEF
*** Apparel Market Size & Share Analysis – Growth Trends & Forecasts (2024 – 2029): Mordor Intelligence
****CareEdge Ratings

(The above press release has been provided by NewsVoir.)

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