The icon of the textile industry is back on its feet and providing solace to the other actors of this ailing sector. After last year’s catastrophic balance sheet showing Rs 200 million losses, Ciel Textile has made Rs 300 million net profits for 2004. “This should be positive for the morale of the whole industry,” chairman Arnaud Dalais pointed out. “The strategy to treat Ciel Textile that we initiated in 2002 is bearing fruit,” he adds. Actually, the good performance is due to a cocktail of factors.

First of all, the sale of the Harris Wilson shops has allowed the company to pocket the tidy sum of Rs 50 million. The restructuring at management level and industrial operations level has proved an appropriate remedy. The increasing value of the euro has finally been a great boom for Ciel Textile.

The group has also thrived through the performance of its different units. Tropic Knits, the T-shirt producer, has become profitable again. “This is the biggest satisfaction because Tropic Knits has suffered from losses for two years. This change has contributed a lot in the group’s recovery. We’ve made a lot of progress but what is even more encouraging is the fact that we should progress even more.” Aquarelle, the shirts unit, also has reasons to celebrate. With excellent results in 2004, it is the leader in this niche.

The only hurdle has been Floréal Knitwear. As it needs more labour force to function properly, it has faced losses. The laying-offs and closing down of production sites three months ago have not benefited enough time to reach profitability. The management made these decisions because it was a “matter of survival”.

Times are still tough but the group’s chief operating officer, Harold Mayer, remains confident. He strongly believes that this unit as well as Ferney Spinning Mills should become cost-effective again as from next year.