Zenith Hopes Continual Investment Will Make it a Global Player
January 5, 2001
Calcutta, India — Zenith Textiles, a division of Zenith Exports Limited, which manufactures silk decorative fabrics, is hoping to break into contract and residential markets on the merits of its made-ups and specifically its cushion covers. The company is looking at 15% annual growth according to managing director Loyalka S. K. He believes that Zenith's design team (backed by Nedgraphics CAD system) and 210-member workforce can continue this trend.
"The trends are clear where pure silk has its important role but limitations too and silk blends would offer new opportunities for innovations, assist new creation. We are bullish on new blends with wool, linen; cotton will fill the void," he said.
In terms of penetrating markets, Zenith has its operations through Zensilk Inc and works with its long time representatives, The Purcell Letchinger Group Inc in the U.S.A. Zenith stocks its range as well and operates through its appointed agents and wants to add in London, France, Germany also. The new territories it is eyeing include Japan, Australia.
Among several similar manufacturers how is Zenith different? "We are distinguished by designs primarily and offer short runs even just 100 meters, especially custom-made fabrics and by stocking many items," said Loyolka.
Zenith is a public limited company and has various operations, including spinning, silk weaving, leather. While the spinning unit (cotton and polyester) is reporting losses due to unfavorable market conditions, the leather gloves unit is up against intense price competition in the international market. The one growing profit is the silk division.
Loyalka said that the family's size enabled the company to diversify in 1994 while keeping family members at the helm of operations. Then, Zenith began producing silk fabrics where the continuous batch in terms of quality was demanded by the customers. Most of the fabrics like silk scarves and home furnishings were either handloom or woven in power loom which had limitations.
By then the company had constructed a $12 million silk manufacturing plant with six jacquard looms and 18 dobbies. While the handloom and powerloom furnishing fabrics fetched $7 to $8 a meter, the average value realization had increased to $16 a meter. The earlier facilities, especially in jacquard, which wove a single design of 13.5 inches restricted creativity. Thus, Zenith added four new looms. It enabled the company to offer 55-inch widths of a single design.
"This let us enter the niche segment and creativity could be expressed better and we expect good response from American markets," he said. The company also added three dobbies at a cost of $1.2 million. Zenith plans to invest $3 million in the year 2002 including funds for printing facilities and additions in preparatory facilities.
While satins are its strength, structured taffetas, it is also effective in producing various weave combinations like satins with jacquard weaving, double weft twills, high quality dupions.
The silk fabric division unit is located in southern India.
Zenith is one of few Indian textiles companies to obtain ISO9000 certification from BVQ1,U.K.
"The trends are clear where pure silk has its important role but limitations too and silk blends would offer new opportunities for innovations, assist new creation. We are bullish on new blends with wool, linen; cotton will fill the void," he said.
In terms of penetrating markets, Zenith has its operations through Zensilk Inc and works with its long time representatives, The Purcell Letchinger Group Inc in the U.S.A. Zenith stocks its range as well and operates through its appointed agents and wants to add in London, France, Germany also. The new territories it is eyeing include Japan, Australia.
Among several similar manufacturers how is Zenith different? "We are distinguished by designs primarily and offer short runs even just 100 meters, especially custom-made fabrics and by stocking many items," said Loyolka.
Zenith is a public limited company and has various operations, including spinning, silk weaving, leather. While the spinning unit (cotton and polyester) is reporting losses due to unfavorable market conditions, the leather gloves unit is up against intense price competition in the international market. The one growing profit is the silk division.
Loyalka said that the family's size enabled the company to diversify in 1994 while keeping family members at the helm of operations. Then, Zenith began producing silk fabrics where the continuous batch in terms of quality was demanded by the customers. Most of the fabrics like silk scarves and home furnishings were either handloom or woven in power loom which had limitations.
By then the company had constructed a $12 million silk manufacturing plant with six jacquard looms and 18 dobbies. While the handloom and powerloom furnishing fabrics fetched $7 to $8 a meter, the average value realization had increased to $16 a meter. The earlier facilities, especially in jacquard, which wove a single design of 13.5 inches restricted creativity. Thus, Zenith added four new looms. It enabled the company to offer 55-inch widths of a single design.
"This let us enter the niche segment and creativity could be expressed better and we expect good response from American markets," he said. The company also added three dobbies at a cost of $1.2 million. Zenith plans to invest $3 million in the year 2002 including funds for printing facilities and additions in preparatory facilities.
While satins are its strength, structured taffetas, it is also effective in producing various weave combinations like satins with jacquard weaving, double weft twills, high quality dupions.
The silk fabric division unit is located in southern India.
Zenith is one of few Indian textiles companies to obtain ISO9000 certification from BVQ1,U.K.
