Nandan Terry’s Towel Stories
Ronak Chiripal,CEO, Nandan Terry
For Gujarat-based Chiripal group scion Ronak Chiripal, the journey as the CEO of Nandan Terry has been full of challenges.
Armed with a rich family experience in the textile industry since 1972, and a Master in Business Management from Syracuse University, New York, the 32-year-old Chiripal set up Nandan Terry in 2016, with an eye on the niche towel segment. Soon after though, demonetisation, GST roll-out, and the biggest of them all, Covid-19, hit the company hard.
“It has been a roller-coaster,” says Chiripal. “We had one challenge or the other almost every quarter in the last couple of years.”
A part of the ₹6,800-crore integrated textile manufacturer Chiripal group — a leader in domestic denim production — Nandan Terry managed to carve a niche for itself in the 100% cotton towels segment, with customers spread across the U.S., Japan, the U.K., West Asia and Australia. The company expects to clock a turnover of ₹1,000 crore in FY22, almost double from ₹539 crore in FY21. That, however, has not been an easy task in an already crowded market with the presence of established brands like Welspun and Bombay Dyeing. The strategy of foraying into non-conventional geographies helped the firm. “Not many were supplying to South American regions, Japan or Korea. Our idea was not to focus only on the bigger markets like the U.S, but also on these niche ones,” says Chiripal. “In the Japanese cultural tradition, towels are given at every occasion. They use thin towels that can be used a few times and are then disposed. Owing to frequent use, Japan became a very big market for us,” says Chiripal, adding that even though South America is a little unorganised, there are retailers in Argentina, Chile and Peru, and it being a coastal market the demand for beach towels is higher.”
The company’s portrayal as a fashion-conscious brand has worked in its favour as well. “The consumer does not want to see towels only as a commodity product,” says Chiripal.
Going ahead, Nandan Terry is looking at expansions worth ₹60 crore. “It would lead to capacity addition of 25% by April or May this year,” adds Chiripal. He wants to focus on contract manufacturing for now. “We will invest in our own capacity, but would like to wait and watch.” An IPO is also on the cards.
The company is now planning to scout for opportunities in the home textile segment.