Sutlej Textiles and Industries Ltd. (STIL) is one of India’s largest integrated textile manufacturing companies, specialising in synthetic, natural and blended yarns, all types of spun yarns and home textile furnishing. The company also processes fabrics. It is one of the largest manufacturers of value-added mélange yarn in India, making single-ply, double-ply and multiply grindle, roving grindle core spun, slub and other fancy yarns. It is also a one-stop shop for all kinds of spun-dyed yarn manufactured from natural or man-made fibres across any blend and any shade in the count range of 6s-50s.
Sutlej has units located in Rajasthan, Jammu & Kashmir, Himachal Pradesh and Gujarat. Its total spinning capacity was 416,616 spindles at the close of 2016-17. Nearly 57 per cent of the company’s spindleage was less than 10 years old as on March 31, 2017, indicating high capability and efficiency.
Daily production was 260 tons of dyed synthetic and blended yarns, cotton mélange and cotton blended mélange and dyed yarns, as well as yarn from speciality fibres (Modal, Tencel, bamboo, coolmax, fancy yarns like siro spun, siro compact, lycra twisted, core spun, double core yarn, etc.) in single ply, double ply and multi-fold.
Sutlej has decided to expand its Baddi unit in Himachal Pradesh by 28,800 spindles to manufacture 100% polyester industrial yarn and other grey blended specialty synthetic yarns. It has also decided to focus on the Home Textiles business and undertook an expansion of its capacity from 2.5 million metres to 9.6 million metres per year, which was completed in March 2017.
Expansion projects
Sutlej has successfully completed expansion of Rajasthan Textiles Mills, Bhawanimandi, by 35,280 spindles to manufacture value-added cotton mélange and cotton-blended dyed yarn and has commenced commercial production from March 15, 2017. It would also be adding 17 knitting machines in the RTM expansion project. The addition of the new capacity enables the company to further strengthen its position as a leading player in the niche cotton mélange, cotton blended dyed yarn and knitted fabric segment.
Sutlej has also completed expansion project of Damanganga Home Textiles, Daheli, Bhilad, Gujarat at a cost of Rs. 81.41 crores as against estimated cost of Rs. 88.50 crores. The same has increased its capacity to 9.6 Mn metres p.a. from 4.8 Mn metres p.a. The expansion of operations in Home Textile Division will ensure further strengthening of company’s end to end operations from Yarn to Home Textile.
Sutlej has decided to expand spinning capacity of BTM by setting up facilities for 28,800 Ring Frame Spindles to manufacture 100% polyester and coarse count polyester cotton yarn for industrial application and other grey blended speciality synthetic yarn, i.e., Modal / Linen, Polyester / Linen, Polyester / Modal involving an estimated capital outlay of about Rs. 215 crores. This will increase the spinning capacity of BTM to 112,176 spindles and that of the company to 445,416 spindles. The project is slated to become operational by April 2019.
Product mix
Over the years, Sutlej has evolved its product mix: the production of cotton melange increased from 26 per cent in its overall yarns mix in 2013-14 to 35 per cent in 2016-17 on account of growing applications and acceptance of melange, enhancing the profitability. The company is increasing its capacity of specialty Lycra twisted P/V yarn from 300 tonnes to 600 tonnes a year, strengthened development centres and will produce new types of yarns, fancy yarns, etc., at these development centres.
Global presence
The company’s customers are spread across more than 60 countries, making it one of the largest Indian exporters of polyester viscose blended yarn with a growing presence in both developed and emerging economies like Australia, Argentina, Bangladesh, Bahrain, Belgium, Bolivia, Brazil, Canada, China, etc.
Sutlej has strengthened its development centres this year to produce value-added yarns and a new type of fancy yarns that help get better margins and sales. At present its margin is about 17%, and going forward in next 2 years the company is looking for a margin of about 22% on the increased volume. At present its sales are about Rs. 100 crores, which will grow to Rs. 200 crores.
Sutlej intends to add quality products, install 18 knitting machines in Bhawanimandi, undertake a spinning project in Baddi to commission 28,800 spindles manufacturing specialty yarns. It intends to commission a plant to produce recycled fibres in Jammu & Kashmir (replacing outsourcing) and a solar power plant in Bhawanimandi.
Home Textiles
In 2006, Sutlej Industries extended its portfolio from specialised yarn manufacture to home textiles. This business accounted for a larger share of the customer’s wallet. Going forward, it would mean least dependence on yarns while enhancing profitability. The company also invested in cutting-edge equipment, state-of-the-art German software, full-fledged testing laboratory, focused product range (upholstery and curtains) and contemporary designs (derived through collaborative working with reputed European studios).
The company has a well-equipped and state-of-the-art design and development center with the advanced hardware and designing software facilities for development of new designs for home textile products and furnishing fabrics. New furnishing fabrics designs are being developed on a regular basis with different basic material, colours, weaves, textures, design pattern, shades, etc., as per the latest trends and requirements of the customers.
Capacity
Sutlej has its reputation for customised solutions across diverse designs, blends, colour and finishes from a single integrated unit. It trebled its manufacturing capacity in late FY17 on the grounds that growth of the upholstery and curtain segments at 12 per cent is one of the fastest within the country’s fabric segment.
Sutlej has implemented phased capacity expansion. The second phase expansion of weaving capacity with 28 looms were commissioned in FY17, raising the capacity to 9.6 million metres per annum. It has also developed new designs and add-ons in line with the evolving market trends, strengthening realisations and has further expanded its presence within the country and the Middle East.
The Home Textiles business will market 50 per cent of the output from the expanded facility within India and the rest abroad (principally the US, the Middle East and ASEAN). The company is optimistic of prospects, with growing demand and corresponding under-penetration in B and C Indian urban locations. It has seeded demand in these markets; its increased captive production will progressively service these seeded markets. Besides, the company intends to introduce new designs and finishes to strengthen consumer traction.