3 weeks ago
Garware Technical Fibres CEO sees positive Q2 outlook, value-added focus
Garware Technical Fibres is a company that makes special fibres and ropes for fishing, construction and shipping.
Its CEO, Mr. Rehman, said the company had a good first quarter thanks to its focus on innovation.
He expects the next quarter to go well too.
Most of the company's business comes from special, high-value products instead of basic ones.
Sometimes the materials the company needs cost more, partly because of problems in West Asia.
When that happens, the company can pass most of the higher cost on to its customers.
Its fish-farming business is a big part of its success, especially in Norway.
Its building and infrastructure business has also been growing quickly.
The company's factories are busy, using about 80 to 85 percent of their capacity.
Its long-term goal is to double its profits every five years.
Garware Technical Fibres CEO Rehman said Q1 results reflected the company's innovation efforts and he expects a positive Q2 outlook.
Raw material price volatility, partly driven by the ongoing West Asia crisis, remains a key challenge along with container availability and shipment delays.
Around 80% of the company's business comes from value-added products, with the remaining 20% commodity-oriented ropes that it plans to upgrade.
Aquaculture contributes nearly 35% of business with Norway as its largest market, while geosynthetics have grown at around 40% CAGR over three years.
Capacity utilisation stands at around 80-85%, annual capital expenditure is Rs 50-70 crore, and the company aims to double profits every five years.
- Who
- Rehman, CEO of Garware Technical Fibres
- What
- The company reported strong Q1 results reflecting innovation efforts and expects a positive Q2 outlook, with a strategic focus on value-added products despite raw material price volatility.
- Where
- Company operations span key markets including Norway, Chile, Canada, Northern Europe and India.
- When
- Following the company's Q1 results, with a positive outlook stated for the upcoming Q2 quarter.
- Why
- The company aims to mitigate raw material cost pressure through its value-added business model and innovation to support margin expansion and long-term profit growth.
Key facts
- CEO
- Rehman
- Value-added share of business
- Around 80%
- Aquaculture share of business
- Nearly 35%
- Geosynthetics growth
- Around 40% CAGR over past three years
- Patents
- Around 28-29 approved; more than 100 filed
- Capacity utilisation
- Around 80-85%
- Annual capital expenditure
- Rs 50-70 crore
- Long-term profit goal
- Double profits every five years
Quotes
Rehman
CEO of Garware Technical Fibres
“"Q1 results are a testimony of the effort that we put in in the area of innovation and trying to understand and solve customers' problems,"”
businesstoday.in
“"Garware’s long‑term planning is aimed at doubling profits every five years."”
businesstoday.in
Sources
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