Artificial leather maker Mayur Uniquoters' profit in 2013-14 grew nearly 1,000 per cent compared to its bottomline in 2008-09.
In the fiscal year 2014 the company's net profit rose to Rs 56.8 crore from 6 crore, five years back in FY09. Mayur Uniquoters' revenues jumped nearly five times in the last five years to Rs 469.6 crore from Rs 115 crore.
"If you see from 2009 to this, turnover was very low that time. So when your turnover is low there is a good scope of having big revenue jump like what you have seen," Suresh Kumar Poddar, CMD and CEO, Mayur Uniquoters told NDTV.
In the last one year, the company's stock gained over 50 per cent on the BSE. On Monday, the stock ended flat at Rs 436.40, underperfoming the broader Nifty and Sensex which gained nearly 0.50 per cent.
"But now in the next coming five years we will not be able to do that much, but of course, I am pretty sure on the topline we should do more than 20 per cent and in the bottomline we should do 25-30 per cent," Mr Poddar said.
Mayur's products are widely used in the automotive industry, furnishing industry, footwear industry, leather goods industries, garments industries, and for products like ladies purses, handbags etc., he said. Footwear contributes to the bulk of revenues and 47-48 per cent of the company's manufacturing capacity is utilised for the industry, the company said.
While it's automotive clients include names like Maruti Suzuki, Honda Motorcycles, Bajaj Auto, Mahindra, Ford, and General Motors; the company counts Bata, Action, Liberty, Relaxo, Paragon, and others among its footwear clients.
"So far as automotive companies are concerned, there you are selected for a particular model. Generally it has been seen till the life of that model they continue with you until and unless they have a quality problem or big differences in the prices from the competitor otherwise they continue till that model runs," Mr Poddar said. (Watch)
For lower end cars and for two-wheeler seats artificial leather is used uniformly, but in high-end cars, it is used as a combination, he said.
"In the seat and backrest area (of high end cars) they use leather and in the side, in the headrest they use artificial leather just as a combination."
While in the automotive industry, the company is involved in the making of seats, for the footwear industry the top look of a pair of shoes or sandals come from the company's products, Mayur said.
"Suppose you are making a sandal and your cost of manufacturing is say Rs 200 for example, so my material cost will be approximately Rs 30-35. That means 15-20 per cent of your raw material cost will be our material for footwear manufacturers."
Speaking on the design aspect of footwear, Mr Poddar said the company is as much involved in the process as the shoemakers themselves.
"Footwear companies they have their designer, they just give us the basic ideas now we have to go to them with hundreds of samples in different textures, in different colours, different prints, different embossing and they select out of that, it's not that it always comes from them."
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