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BW Businessworld

A Mixed Bag

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The decision to diversify into high-margin businesses helped Navi Mumbai-based garments maker Sudar Industries enter the list of fastest growing companies (Rs 100 crore-Rs 999 crore in net sales). Sudar, which went public in 2011 with a Rs 70 crore initial public offer, saw its net sales revenues shoot up from Rs 115 crore in 2010-11 to Rs 849 crore in 2013-14. In just the last financial year, the growth was a phenomenal 94 per cent. The company’s profit after tax (PAT) went from Rs 7 crore in FY2011 to Rs 41 crore in FY2014.

“A couple of years ago, we diversified to manufacture advanced intermediate fine chemicals used for manufacturing active pharmaceutical ingredients (API) and agro-chemicals by acquiring Benzo Petro International in Vadodara, which helped in both top and bottom line growth,” says M.G. Subramaniam, executive director.

In the year following the acquisition, Sudar’s chemical business notched up revenues of Rs 80 crore; the same jumped to over Rs 300 crore in the last fiscal. Yet, the bulk of the company’s business comes from apparel. Going forward, the new businesses will bring in more revenues, says Subramaniam.

The company’s growth mirrors the life of its promoter, Murugan M. Thevar. Starting out as a tailor 22 years ago in Mumbai, the company founded by him now exports garments to the tune of Rs 125 crore.

As for the future, the company plans to manufacture advanced intermediaries and set up a new plant for API production with a capital expenditure of Rs 33 crore.

(This story was published in BW | Businessworld Issue Dated 11-08-2014) ]]>