From cotton mills to the stock market, how this businessman woven a success story that only began after his retirement
While the goal of retirement is to live an easy, slow, and peaceful life, the case was completely different for the entrepreneur. Dwarka Prasad Mangal. At 62 in 2010, Mangal was retired, bursting with energy, and wanted to do something on a large scale. âI didn’t want to do the regular consulting work,â he tells SMBStory.
It was then that he decided to embark on entrepreneurship. Having worked in the textile industry for several years, including in companies such as Rajasthan Spinning and Weaving Mills, Jagatjit Cotton Textile Mills and more, Mangal decided to focus on this industry to make its debut in the business market. This is how the manufacturer of cotton yarn, Lagnam Spintex, came into the world.
In 2010, it moved its base from Delhi to Bhilwara, Rajasthan, to establish a ring yarn and open end yarn manufacturing unit. A total of Rs 31 crore was invested to start the business, and according to Mangal he contributed around 30 percent of the amount, and the rest was financed by a bank.
However, he admits the move was not easy. âIt was difficult since I invested the earnings of my life in the company. In addition, moving from Delhi to Bhilwara, which is not as developed, was not easy, âhe says.
The change, he adds, has been more difficult for his eldest son, Anand Mangal. âAnand was born and raised in Delhi. He also lived in London for a few years. But we were determined to make our project a success.
Anand studied at the University of Bradford and worked with ICICI Bank for a few years before joining the company in 2012.
Commercial production started in 2012 with 960 rotors open. The company recorded Rs 35 crore that year. They too started exporting to Europe from 2013 and extended to other countries. Today, 55 percent of production is exported to countries like Italy, Turkey, Portugal, Colombia, China, Bangladesh and more. Bangladesh, Highlights Mangal, is the company’s largest market.
As production increased, Lagnam Spintex added 480 rotors in 2014 in the same unit and 480 more in 2015.
India and the market
Cotton holds the largest share of yarn production in India, according to a Statista report, and cotton yarn has a 71% market share. In addition, the textile and clothing industry contributes around 2.3 percent of the GDP. In addition, India is one of the largest producers of textile yarns in the world.
Lagnam exports to several countries around the world and its cotton yarn is particularly used in the manufacture denims, terrycloth towels, stockings, home textiles, industrial fabrics and more.
In addition, significant revenues of the company come from the global market. This year, Mangal says he expects a turnover of Rs 325 crore, of which Rs 180 crore will come from exports.
How were they able to chart this course of growth?
By leveraging technology and striving to always keep the quality of the yarn second to none, he says.
He adds that the factory, over the years, has also automated several production processes to ensure top quality and logistical ease, and the machines are exported from different countries such as Germany, Switzerland and Spain. .
Currently, Lagnam has installed 1,920 rotors and 25,536 spindles, producing 35 tonnes of wire per day. In 2018, the company was also listed on the SME platform of the National Stock Exchange. This year it migrated to NSE’s main platform.
Impact of COVID-19 and the way forward
Calling the COVID-19 pandemic a nightmare, Mangal recalls that the production unit was completely closed for almost a month between March and April 2020, which resulted in losses in the coming quarters. The labor shortage also exacerbated the company’s problems, with several workers fleeing cities to their hometowns.
Mangal adds that the company has been able to survive thanks to exports. âThe demand in India was nil because no one was going out. In the world market, there were disruptions, but there was no lack of demand. “
Mangal points out that the pandemic has changed a lot of things, but the biggest change it has brought about is the perception among global sellers and buyers that a face-to-face meeting is important to keep the business going.
âPreviously, the buyer’s mindset was that the seller had to meet with them in person to form a relationship but this is no longer true,â he says, adding that his international business travel has declined significantly. , thanks to digital means of interaction. .
Going forward, the entrepreneur’s plan is to continue to expand his presence across the globe and to penetrate deeper into the markets where he is present. The company is also on the road to recovery. âThe months between October 2020 and March 2021 played a role in the resumption of activity,â he concludes.