Coates Group CEO Rajeev Sharma inspected the Madurai Sustainability Hub after its inauguration. , photo credit: N Anand
Coates Group plc, one of the world’s largest thread manufacturers, will continue to focus on the core business of making sustainable sewing threads and is unlikely to re-enter readymade garments, which it sold in 2000, According to CEO Rajeev Sharma.
“We sold Indian Rayon to the garments division of Madura Coats, a subsidiary of Coats Viala, in 2000. [Re-entering the segment] Would be like rubbing an old wound,” he said during an interaction.
Indian Rayon took over the textile division as a going concern with employees, brand licence, distribution and manufacturing network. It became the owner/licensee in India for premium brands such as Louis Philippe, Van Heusen, Allen Solly, Byford, Peter England and Sanfrisco,
“They (the brands) are doing very well. The performance is much better than what we could have achieved if it were with us.”
According to him, Coot is currently focusing on achieving sustainability goals in key areas such as water, energy, minerals, waste and people making sewing threads for apparel, footwear and performance materials.
To achieve its goal, Coates opened a 100% focused ‘Sustainability Hub’ at its Madurai Spinning and Twisting Plant and announced new targets for 2026.
“In Phase-I (duration of four years till 2022), we have worked on the target to a great extent. In the second phase, we will make threads using recycled, renewable or new generation materials such as wood pulp, corn, bamboo shoots and banana skins. Emissions reduction throughout the company’s entire value chain is at the heart of these new goals,” he added.
Coats posted revenue of around $1.6 billion for FY22, of which India accounted for 10-11%. In the next few years, India has the potential to increase this to 16-18%. Tamil Nadu contributes 60% of the coat’s manufacturing capacity,” he said.
Responding to a question about Russian operations, he said it was closed due to restrictions on war, bank transactions and logistics issues for the safety and security of its employees.
In addition, Coates also closed its operations in Argentina, Brazil, Hungary, South Africa US, Mauritius and Budapest as they were not sustainable.
“There are still more places that can be closed. We are also looking for acquisitions,” he said.
