VFL closed FY 22 with a revenue of ₹1,547 crore. Vinay Thadani, who has been the CEO for a little more than a year, attributes the growth story in the post-pandemic period to the better capacity utilisation of 85%. The second reason has been the rise in raw material prices, which has had a consequent spin-off effect on overall revenues.
Thadani speaks of a change in the demand pattern (for the company's customers) after the COVID-19 pandemic, particularly because of the China + 1 policy of many countries. Those countries were considering India as an alternative to China, with India being that mature textile economy. Till the pandemic, as Thadani outlines, VFL was an out-and-out domestic-centred company. Even in FY 21, only 1.81% of the company's revenues of ₹967 crore came from the international market.
In the last FY, this number has climbed up to 8–9%. During the pandemic, even as many Indian states and also other countries remained under lockdown, there were still some nations which were open. "We felt that we should diversify; this was the right time to go into the Western markets." In the first year, VFL managed to add 12 countries (mostly in South Asia and MENA regions) to its portfolio, and last year it added three more geographies (in Europe). Now, the immediate target is Latin America.
The export growth has also raised the company's ambitions: this year VFL is targetting a 15–20% revenue share for its exports. The company is planning another two lines for denim with ₹30 crore which will be raised internally. The capacity will then rise to 100 MMPA (million metres per annum). Nandan Denim stands at 110 MMPA and another small group company Nova Textiles with three lines has 30 MMPA. The Chiripal Group altogether would be having a capacity of 240 MMPA, which Thadani asserts is the largest in Asia. [One line produces roughly 10MMPA.]
The capacity utilisation currently stands at 85%. "The highest that one can go up to is 92%. But we will be targetting 88% this fiscal year." Overall, the company would be looking at a turnover of ₹2,000 crore.