Nandan Denim Ltd. (NDL), poised to become Asia’s largest denim fabric manufacturer, has reported a net profit of Rs. 63.32 crores for FY 2015-16 as against Rs. 51.43 crores in FY 2014-15, a rise of 23 per cent. Net sales for FY 2015-16 at Rs. 1,156.72 crores were higher by five per cent over previous fiscal’s net sales of Rs. 1,096.53 crores.
Mr. Deepak Chiripal, CEO, Nandan Denim Ltd., said: “Our financial performance validates that we are taking the right steps in the right direction. With the type of tighter operating controls, prudent raw material sourcing and growing capacity utilisation that we have, apart from concentrated efforts in moving up in the product segment, we are able to fetch superior financial returns for the investments. We are confident that post completion of the expansion plans, the company, with much larger production capacities and product baskets, would be optimally placed in the competitive market to cater to the larger demand arising from India and overseas markets.”
The company is currently undergoing a capex of Rs. 6,120 million which is scheduled to be completed by Q2 FY17. As of March 31, 2016, the company has completed capex of Rs. 4,004 million funded by debt of Rs. 2,599 million and equity of Rs. 1,405 million. Total debt increased to Rs. 5,184 million in FY16 in view of the ongoing capex compared to Rs. 4,709 million in FY15.
Nandan Denim is a part of a leading conglomerate, Chiripal Group, which was established in 1972, and is currently diversified across several businesses like textiles, petrochemicals, chemicals, packaging, infrastructure and education. The company which commenced its operations in 1994 with textile trading forayed into textile manufacturing in 2004. It currently specialises in denims, cotton fabrics and khakis.
Run by a professional management team with an average experience of more than two decades, Nandan Denim has one of the largest denim fabric manufacturing capacities in the world. The company expanded its denim fabric capacity from 71 MMPA to 99 MMPA in FY16. It plans to backward integrate by expanding its spinning capacity from 64 TPD (tonnes per day) to 124 TPD in FY17, resulting into higher operating margins and improved return ratios. The company also owns a captive power plant of 15 MW.