Ambika Cotton Mills Ltd. clocked a turnover of Rs. 52,939.73 lakhs for the financial year 2016-17 as against Rs. 49,408.24 lakhs in 2015-16, and a profit of Rs. 10,128.92 lakhs (Rs. 8,887.67 lakhs). This represents a growth of 7.15% in total income. The improved financial performance for the year was on account of continued strengthening of the core production process, better generation and evacuation of wind power, coupled with outsourced power at favourable prices. The company is continuously working on strategies for product innovation and enhanced productivity. During the year, Ambika invested Rs. 1,752 lakhs towards strengthening manufacturing operations in its spinning segment and has invested Rs. 1,007 lakhs in knitting. The company’s knitting facility would knit fabrics upto 8,000 kg per day as of now, of which 90% is exported.
The implementation of the spinning phase is still pending on account of the uncertainty related to use of land and appropriate clearance from authorities. However, the company has planned to invest further an estimated Rs. 2,000 lakhs in its knitting segment in order to augment the capacity further to 16,000 kg per day. Ambika, on account of its manufacturing specialty cotton yarn, continues to evoke good demand and has created specific markets for its products. This ensures more sustained profitable operations. The company continues to strengthen its production base by modernization and adding balancing equipment and improvising the production process. It has already installed windmills for 100% of its captive requirements and has also installed EHT line (110 KVA sub-station) for smooth flow of quality power.