India : Downturn Forces Century Textiles to Refocus On Domestic Market

Century Textiles and Industry Ltd will refocus attention on the domestic market, and reduce its exposure to the export market primarily because of a downturn in the overseas market.

The company had cut production in its textile mills by 25 per cent because the export prices had proved unremunerative, and had diversified production patterns to meet domestic demand through the varieties, patterns and designs. Its annual report stated that total exports amounted to Rs 419 crore. To cater to domestic demand, it has test-launched its range `Cottons by Century'' in Mumbai. This will be launched nationwide this year. The company is hoping that its promotion of the Seal of Cotton trademark will increase consumer preference for cotton and, in turn,
spur its sales.

The company also decided to dispose of its existing fleet of two ships this financial year and close the shipping division. The ships were not sold yet because buyers had not been located and the market itself was volatile, according to Mr S. K. Birla, Director, who chaired the meeting. At the meeting, queries were raised on the surplus land available with the company and Mr Birla clarified that there was no proposal for its development.

Regarding the cement division, Mr Birla said that prospects were bright for this segment and that the company was targeting growth in the North and that in a period of 18 months, much growth would be witnessed in the South.

On reports that Ms Vidula Khaitan was being groomed to take over the company some day, Mr Birla said that it represented "wishful thinking" on the part of some.