Expanding business horizons with quality yarns and cords
Fabcord International, established in November 2014, stands as a prominent entity in the industry, renowned for its superior quality carpet yarns and cords.
Over the years, the company has excelled in the production of multiply twisted yarns, cords, and other related products.
With a remarkable presence in the global as well as domestic market, Fabcord International has emerged as the preferred supplier for carpet, rug, and bathmats manufacturers across geographical locations.
Driven by a clear vision for the future, Fabcord International is committed to further expand its presence and capabilities. By leveraging strategic investments, embracing technological advancements, and maintaining a firm commitment to quality, the company aims to cement its status as a premier provider of yarns and cords in India as well as overseas.
What’s more, upholding the principles of sustainability and social responsibility Fabcord International remains dedicated to meeting the evolving needs of its clients and with this visionary approach guiding its operations, the company is poised for sustained growth and success.
Recently, Fibre2Fashion had the privilege of speaking with Chitrang J Jariwala, the founder of Fabcord International, to gain deeper insights into the company’s operations, range of product offerings, and his vision for shaping Fabcord’s unique identity in the marketplace.
Jariwala underlined that Fabcord was established with a clear mission to deliver supreme quality and service to its customers even as he emphasised the company’s commitment to innovation and continuous improvement, stating that these principles are at the core of Fabcord’s ethos.
He also highlighted the company’s achievements in developing multiply twisted yarns and cords that meet the highest standards of durability and performance.
In addition to its focus on product excellence, Fabcord International places great importance on building strong relationships with the customers. Jariwala highlighted that customer satisfaction is always paramount for Fabcord, and the company strives to exceed expectations by providing excellent service and support at every stage of the customer journey even as he underscored Fabcord’s dedication to understanding and fulfilling the unique needs of each client, whether large-scale manufacturer or a smaller business.
Following are the excerpts from the candid dialogue:
Can you walk us through Fabcord International’s journey so far?
The business was started by my father in 1998 under the name C. K. Lace Industries, which is our parent company.
In 2014, we branched out to establish Fabcord International. Initially, Fabcord mainly focused on export operations, but over time, we diversified into both the export and domestic segments.
Like any business, our journey has had its own share of ups and downs. Nevertheless, Fabcord has managed to distinguish itself as a leading manufacturer, exporter, and supplier of premium carpet yarns and cords. Since Fabcord International’s inception in November 2014, the company has excelled in producing multiply twisted yarns and cords, earning recognition as a preferred supplier for carpets, rugs, and bathmats manufacturers globally.
With a strong presence in both global and domestic markets, we are committed to expanding our footprint and capabilities further. Our growth strategy centres around quality, with the principal aim to solidify our position as a premier provider of yarns and cords even as our overarching goal is to cater to the evolving needs of our clients, upholding the principles of sustainability and social responsibility.
What are your major products offerings?
When we (Fabcord International) started operations, the focus was primarily on fancy carpets cords. Initially, our export ventures targeted markets in Türkiye, Egypt, and other countries in the Middle East, offering products such as Malai Dori and Flat Dori, which encompassed round and flat cords, respectively. These products formed the cornerstone of our business from 2014 to 2016.
In 2017, we expanded our product portfolio to include various yarns, including multiply twisted yarns, high bulk yarns, space-dyed yarns etc. We procured raw materials and employed value-added processes to manufacture in-house, catering to both the domestic and global markets.
While our initial focus was solely on exports, over the past eighteen months or so, we have diversified our operations to meet the burgeoning domestic demands as well.
At Fabcord, we specialise in manufacturing high-quality multiply twisted yarns for carpets, rugs, and bathmats, using premium polyester and nylon materials. Our expertise extends to producing various cords, including satin rat tail cords and carpet yarns, among others.
Equipped with an advanced in-house research and development facility, we excel in twisting and cabling processes, complemented by online heat setting procedures and dyeing facilities featuring Effluent Treatment Plants (ETP).
This comprehensive infrastructure enables us to tailor products precisely to our clients’ specifications, ensuring flexibility and customisation. Our commitment to excellence is reflected in our continuous efforts to enhance the quality and value of our products and services, aligning them with the evolving demands of our customers.
Adhering strictly to the globally mandated quality parameters, we uphold our reputation as a reliable supplier in the international and domestic markets. Our mission is clear: to establish ourselves as leaders in yarn manufacturing, supplying, and exporting globally and domestically.
Besides our comprehensive range of services tailored to meet the diverse needs of our clients, we also take pride in producing GRS (Global Recycle Standard) certified recycled polyester yarns, underlining our commitment to sustainability.
Our extensive product line caters to various applications, including knitted carpets, tufted carpets, weaving carpets, and bathmats. We offer yarns in a wide range of lustre and deniers, ensuring suitability for diverse requirements and preferences. Clients can choose from an array of options, including bright, semi-dull, top-dyed, dope dyed, and multi-colour yarns (space dyed), available in an assortment of colours and qualities.
We also offer polyester bright multiply yarn, micro polyester (or micro shaggy) multiply yarn, high bulk yarn, and bulky yarn, available in distinct colours and qualities to suit varied preferences and applications.
What is the breakdown in volume between domestic and export markets?
In our company’s initial stages, a sizeable portion, approximately 75 per cent of our operations were oriented towards exports, while the remaining 25 per cent served the domestic market. However, challenges arose, particularly concerning delayed payments within our export endeavours. This prompted a strategic re-evaluation, leading us to transition our focus towards the domestic market. The primary concern with exports was the frequent delay in payment receipt, causing financial strain and uncertainty.
In contrast, the domestic market offered a more favourable payment structure. Here, new clients often made upfront payments upon engagement, providing immediate financial stability. Moreover, existing customers typically settled invoices within a month, ensuring a steady and predictable cash flow.
The stark contrast in payment terms between the two markets underscored the need for a shift in our business strategy.
As a result, we redirected our efforts to capitalise on the advantages presented by the domestic market’s payment system. This strategic pivot allowed us to mitigate the risks associated with delayed payments in exports and leverage the stability offered by the domestic market to ensure the financial sustainability of our operations.
By prioritising the domestic market while also maintaining focus on the overseas clients, we could streamline our cash flow management, reduce financial uncertainty, and maintain a more resilient business model. This shift enabled us to achieve greater stability and better position ourselves for long-term growth.
What initial challenges did you confront in the domestic market, and any positive changes that you have witnessed lately?
Initially, the domestic market posed diverse set of challenges. One major issue was the limited quantity demands from domestic clients, often requesting only 500 kilogram or between 1 to 2 tons per order.
These small orders were not viable for us, creating a tricky situation. Compounding the issue was the fact that our raw material suppliers were unwilling to provide materials in quantities less than three tons, which made things even more challenging for us.
However, a significant shift has occurred in the domestic market lately with many manufacturers moving towards machine-oriented production methods. This shift has positively impacted the demand for yarn.
Historically, the manufacturing of products such as bathmats, carpets, and rugs relied heavily on labour-intensive practices. These traditional methods naturally limited production volumes and, consequently, the demand for yarn remained relatively low and inconsistent.
With the advent and adoption of automated machines, the landscape has changed dramatically. Automated production methods have increased drastically the volume of finished products, which in turn has heightened the demand for yarn. This transition has not only streamlined production but also led to larger and more consistent order flow. As a result, the minimum order quantities (MOQs) have increased, aligning better with our production capabilities as well as the supply scale from our raw material providers.
How do you manage to uphold quality standards while addressing the distinct needs of domestic and export markets?
Maintaining quality in both markets is not overly difficult for us as one might think. Our advantage lies in the modern machinery and technologies that we employ.
Having started yarn manufacturing in 2017, most of the machines and technology that we use are the latest ones. Our state-of-the-art facility enables us to produce high volumes while maintaining the quality criteria.
We also avoid job work and focus entirely on in-house production to ensure quality control.
What is your current production capacity?
Our current production capacity ranges from 350 to 400 tons per month.
Do you also offer customisation as per customer requirements?
Yes, we customise our yarns based on customer preferences. Previously, customers would buy the same products repeatedly, but now there is a demand for innovation every few months. To meet this demand, we have set up an R&D department with dedicated personnel and in-house facilities like dyeing plants, cone dyeing, and hank dyeing, everything.
Are there any expansion plans in consideration of your growing business?
Yes, we are actively pursuing a larger space to support our expansion plans. Our objective is to acquire a parcel of land where we can construct a building as per global standards, meeting all the compliance requirements and other parameters as we intend to increase our global client base. This will position us for potential collaborations while enhancing our growth prospects.
We are considering several locations in proximity to Surat, including Palsana, Sachin, and Dahej, which offer strategic advantages for our operations. Our target is to have the new unit operational within one and a half years or so. This timeline is crucial for us to capitalise on the favourable market conditions currently available.
By moving swiftly and strategically, we aim to bolster our capacity, improve our infrastructure, and align our facilities with international benchmarks, thereby reinforcing our competitive edge in the industry.
We have been focusing significantly on the domestic market due to critical challenges faced in certain export markets, such as delayed payments and demands for heavy discounts in event of any issues. Despite these difficulties, we continue to serve other global markets effectively.
However, the domestic market still presents its own set of challenges, particularly regarding MOQs. Nonetheless, we are committed to navigating these challenges to strengthen our presence both domestically and internationally, ensuring that we can meet the demands of all our markets efficiently.
How do you plan to overcome challenges related to lead times, considered critical in today’s landscape?
Unfortunately, reducing lead time significantly is challenging due to many factors like raw material procurement delays and limited number of domestic suppliers. While we aim to streamline processes and enhance efficiency, certain constraints persist even as we try to navigate the bottlenecks to mitigate the challenges pertaining to lead time.
What are your growth projections going forward?
Despite some recent challenges, I anticipate steady growth over the next few years. The COVID-19 pandemic and its aftermath posed some major obstacles, disrupting operations, and impacting the markets globally. However, I remain optimistic about our prospects as things have started becoming normal again.
We have also adapted well to certain challenges, implementing strategies to navigate the complexities brought on by the pandemic.
Looking ahead, I foresee sustained growth for the next 4-5 years, at least. And our resilience and adaptability have positioned us well to capitalise on the emerging opportunities as we continue to innovate and optimise our operations to meet the evolving market demands.
This proactive approach, coupled with our commitment to quality and excellence, I feel, will drive our growth trajectory and ensure that we remain competitive in a dynamic environment.
As an SME, are you receiving adequate support from the government?
With the implementation of GST and digitisation, processes have become smoother for us. Overall, we have received adequate support, enabling us to navigate regulatory requirements efficiently.
What is the status of Surat as a textile hub currently as you see it?
Surat remains a prominent textile hub, alongside other industries like diamonds, automobiles, and food processing. Despite periodic fluctuations, Surat, which is renowned as the textile city of Gujarat, maintains a strong position in the market.
Surat’s MMF sector in particular is robust, with many companies establishing production units in nearby regions like Silvassa to leverage various government incentives.
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