Coats Group CEO Rajiv Sharma inspects the Madurai Sustainability Hub after inauguration.
| Photo Credit: N. Anand
Coats Group Plc., one of many world’s largest thread makers, will proceed to deal with the core enterprise of constructing sustainable sewing threads and is unlikely to re-enter readymade clothes which it divested in 2000, in accordance to Group CEO Rajiv Sharma.
“We sold the garments division of Madura Coats, a subsidiary of Coats Viyella, to Indian Rayon in 2000. [Re-entering the segment] will be like rubbing an old wound,” he stated throughout an interplay.
Indian Rayon acquired the clothes division as a going concern with workers, model licences, distribution and manufacturing networks. It turned the proprietor/licencee for India for premium manufacturers corresponding to Louis Phillippe, Van Heusen, Allen Solly, Byford, Peter England and Sanfrisco,
“They (brands) are doing extremely well. The performance is much better than what we could have achieved, if it was with us,” he stated whereas ruling out the potential for having a re-examination.
According to him, Coats is at the moment specializing in reaching sustainability targets in key areas corresponding to water, vitality, minerals, waste and other people to make sewing threads for attire, footwear and efficiency materials.
To obtain its purpose, Coats opened a 100% targeted ‘Sustainability Hub’ at its Madurai spinning and twisting plant and introduced new goal for 2026.
“In the phase-I (spanning four years till 2022), we have substantially delivered on the target. In the second phase, we will make threads using recycled, renewable or new generation items such as wood pulp, corn, bamboo shoots and banana skin. Emission reduction across the company’s entire value chain is at the heart of these new targets,” he stated.
Coats posted income of about $1.6 billion for FY22, of which India accounted for 10-11%. In the following few years, India has the potential to scale it up to 16-18%. Tamil Nadu contributes to 60% of Coat’s manufacturing capability,” he stated.
To a query about Russian operations, he stated it was closed due to the struggle to shield and safeguard its workers, limitations on financial institution transactions and logistics points.
Besides, Coats additionally closed its operations in Argentina, Brazil, Hungary, South Africa U.S., Mauritius and Budapest as they weren’t sustainable.
“There are still more places, which can be closed down. We are also looking for acquisitions,” he stated.
