India’s Top 500 Companies 2022

INDIA’S TOP 500 COMPANIES 2022 46 Experts’ View Vishal Fabrics has become one of the leading manufacturers of premium denim fabrics in India. How would you summarize this journey since its inception in 1985? What are some of the key milestones of the company in recent years? Vishal Fabrics Limited is a listed Company, incorporated in 1985, having a CAPEX for denim manufacturing with a processing capacity of 80 MMPA. We manufacture fabrics ranging from standard to super- premium segments but we are more focused on the premium segment. We have investedheavily inourmanufacturing units and adopted sustainable production policies. Constantly upgrading to state- of-the-art technology to meet our end- to-end processes and deliver operational excellence. We are one of the largest process houses, with a capacity of 105 MMPA for dyeing and processing of fabrics. In 2016-17, we commercialized the operation of four denim lines and by 2018, commercialized the operation of four more denim lines, with 80 MMPA denim manufacturing capacity. We added another denim line that started its operation in March 2022 with a total capacity of 10 MMPA and one more denim line will be commercialized in the upcoming quarter. We have achieved the highest ever revenue ( ` 1547 Crores), EBITDA ( ` 161 Crores), and PAT ( ` 69 Crores) in FY 2021-22. Despite a challenging economic environment over the last two years, our debt-to-equity ratio remained favorable at 1.13x, reflecting underlying balance sheet resilience. We are expanding our footprint and targeting new geographies for export growth. Despite a challenging economic environment in the last couple of years, the company has managed to achieve stellar performance. What is your company’s success mantra? We have been passionate about changing the fashion trends in the world and standing at the forefront of the denim revolution. We believe in investing in sustainable end-to-end production processes. The pandemic had been a rough time for everyone. We worked hard during the pandemic and focused on our strategy to expand post-pandemic. We spearheaded growth in the industry through strategic collaborations with leading global retail brands for direct sales. We were successful in expanding our footprint and venturing into new topographies. We also added additional capacity to our units to drive the next leg of growth. We expanded our facilities with the addition of another denim line that has been running since March 2022 and another denim line that is underway. We also carefully curated a plan to ensure better utilization of our unit capacities. We optimized our operational efficiencies. With the rise in prices of raw materials, we also faced some issues. However, we resorted to the price-hedging strategy to deal with this. What are some of the key ESG initiatives taken by your company in recent years? What impact did it have on society? We are committed to preserving the environment and finding more sustainable ways for our production unit. We have invested in Effluent Treatment Plant which ensures Zero Liquid Discharge at manufacturing units. We are OEKO- TEX certified. Our plants use a go green washing machine for sampling and development and we use a water spray technology for washing which saves 803 KL of water per annum. VFL have created a massive green cover at our plant and the industrial park in an attempt to preserve, enhance and encourage green spaces. We use eco-friendly dyes as an alternative to harmful chemical dyes. We conduct our CSR activities through educational welfare activities through our registered trusts, ‘Chiripal Charitable Trust’, ‘Happiness Reserves Foundation’, and ‘Milestone Educom Trust’ which have impressive track record of making education development a reality. Our company organizes one of the largest robotics festivals called “Robotex India” to create opportunities for the younger generation to explore science and technology and innovation through robotics, thus building a creative and futuristic ecosystem. VISHAL FABRICS LIMITED Vinay Thadani CEO Dun & Bradstreet