A forward-looking organisation, Sutlej Industries has been consistently investing in cutting-edge assets and technology upgradation, reflecting in enhanced automation (material handling to processing) and related efficiencies. Over the decade, the company has invested around Rs. 960 crores on expansion and modernisation.
“At Sutlej Industries, the year 2013-14 was characterised by the highest ever capacity utilisation and production, stronger efficiencies and higher average realisations. Our company reported a 12 per cent increase in revenues to reach Rs. 1,880.62 crores and 71 per cent increase in profit after tax to Rs. 131.38 crores in 2013-14. It is indeed satisfying that this performance was achieved during a phase marked by decelerated GDP growth, rising inflation and fluctuating exchange rates. The company expects to sustain growth from within India by paying close attention to changing lifestyles, cashing in on rising incomes and manufacturing products which are at par with the best in the world. Now with international economies reviving, we expect export demand to increase,” says Mr. C.S. Nopany, Chairman, Sutlej Textiles and Industries Ltd.
Sutlej Industries has extended from being a standalone grey yarn manufacture to a one-stop-shop for all kinds of spun yarn from natural or manmade fibres across any blend in the count range of 6S- 50S. The company is an integrated textile manufacturer with presence across the value chain, from yarn to fabric to home textiles. It possesses one of the largest product portfolios including spun-dyed and mélange yarns. The company is headquartered in Mumbai with four manufacturing units located in Jammu and Kashmir, Rajasthan and Gujarat.
Marketing strategy
Sutlej has invested in deepening relationships with marquee corporate customers and the development of multiple products across multiple grades. The company selects to market products in the early stage of its life cycle, helping strengthen the business of its downstream customers. It enjoys enduring relationships with an extensive network of agents and dealers in India and abroad. Sutlej Industries has a market presence in over 60 countries. Its export accounts for 25 per cent of 2013-14 revenues compared to 20 per cent in 2012-13.
Cutting-edge technology
Sutlej is a leading producer of spun-dyed yarns in India. It enhanced its spun-dyed yarn capacity by 110 per cent over the decade leading to an average daily yarn production of over 199 tonnes. The company is expanding its capacity by 30,672 spindles (to be commissioned by October 2014) with the objective to manufacture specialised cotton mélange yarn and increasing its total capacity from 2,61,736 spindles to 2,92,408 spindles.
The company has budgeted a capital expenditure of Rs. 175 crores for its expansion project. Sutlej expects to commission a Rs. 31 crores modernisation programme in the current year and further undertake such programmes to the amount of Rs. 66 crores in 2014-15. During the year under report, the company also established a synthetic yarn development centre in addition to an existing mélange development centre.
Sutlej is one of India’s largest exporters and manufacturers of value-added synthetic and blended spun dyed yarn. The company also manufactures cotton and cotton-blended dyed and mélange yarn. It is also among the few exclusive spinners of specialty yarns like modal, lyocell, lycra and tencel.
Having the capacity to manufacture almost every grade across different yarn varieties (cotton, synthetic and blended) comprising single-ply, double-ply and multiply grindle, roving grindle, core spun, slub and other fancy yarns, it is also one of the few fibre-dyed yarn manufacturers with the ability to provide virtually any shade.
As a result, Sutlej has emerged as a one-stop shop for all types of spun yarns. The company has invested Rs. 830 crores in cutting-edge technology across 10 years. Nearly 69 per cent of its spindleage is less than a decade old. Yarn exports accounted for 22.62 per cent of the company’s revenues in 2013-14. It exports yarn to around 45 countries across the globe.
The company’s yarn volumes grew by 2.63 per cent from 69.71 million kg in 2012-13 to 71.54 million kg in 2013-14. Average spindle utilisation was 95.52 per cent as compared to 94.41 per cent in the previous year 2012-13. Yarn exports increased by 47.25 per cent and stood at 19.53 million kg, valued at Rs. 425.43 crores. Domestic volumes stood at 60.14 million kg in 2013-14. Its Chenab Mills has an installed capacity of 1,71,288 spindles and the Rajasthan unit can produce nearly 90,448 spindles.
Fabrics
The company embarked on fabric manufacture in 2000-01 as an initiative directed towards forward integration. Its fabric unit, Damanganga Fabrics, is located in Bhilad (Gujarat) and equipped with cutting-edge equipment and a skilled workforce, translating into the manufacture of quality fabric. The company’s in-house design studio conducts continuous research regarding latest trends, cuts, shapes and colours.
The division possesses a diversified product portfolio, de-risking it from an overt dependence on a single product. The division also possesses the capability to innovate a variety of shades, colours, blends, texture and finishes. Sutlej is among the few to produce specialised fabric like teflon coated, insect- repellent, malodour resistant, polywool, lycra, poly wool lycra, teflon finish, WR fabrics, 100 per cent wool fabrics. The division achieved sales volume of 5.09 million metres. The facility has a capacity to produce 4.9 million metres of woven fabrics and 20 million metres of processed fabrics.
Home textiles
Sutlej entered the home textiles segment in 2006 through Damanganga Home Textiles. The plant is equipped with state-of-the-art equipment to produce furnishing fabrics and made-ups. Sutlej ventured into the home textiles segment to address a growing market of premium home textiles. The division is equipped with a world-class design facility comprising cutting-edge German design software. Its facilities also comprise a full-fledged testing laboratory with latest equipment for testing yarns and fabrics. The home textiles division accounted for 2.03 per cent of the company’s revenues in 2013-14.
Home textiles sales grew by 14.74 per cent from Rs. 33.79 crores in 2012-13 to Rs. 38.77 crores in 2013-14. Its exports increased by 20.13 per cent and export volumes stood at 0.7 million metres. New designs were introduced to cater to a widening market worldwide. Its capacity utilisation increased from 77.36 per cent in 2012-13 to 80.54 per cent in 2013-14. The installed capacity of the unit is 2.5 million metres per annum and intends to enhance it in due course of time.
R&D activities
The R&D Division has well-equipped and state-of-the-art quality testing and development equipment, managed by a committed team of highly qualified and experienced professionals. It has a separate mélange development centre having machines from blowroom to finishing with 768 spindles and knitting machines for quick preparation of samples in knitted form and a PV development centre with 384 spindles and other machines for development of synthetic blended yarn.
Sutlej Industries plans to set up a new mélange development centre having machines from blow room to finishing with 864 spindles, sample dyeing machines and quality testing equipment for lab dip matching to develop the samples of new varieties of fancy yarn with a capital outlay of Rs. 5 crores, which is expected to be operational before the close of financial year 2014-15.