Sutlej Textiles had visualised that the most effective strategy to counter a business slowdown would lie in capacity addition and revenue growth. In view of this, the company acquired the Birla Textile Mills (BTM) capacity of 83,376 spindles in 2015-16 and has further added 35,280 spindles in 2016-17. The result was that the company reported an increase in profits, validating its acquisition and expansion priorities.
The company had sufficiently recognised that capacity increase would not alone be enough buta churn in yarn manufacturing capacity towards value-added yarn varieties. In line with this priority, Sutlej increased the proportion of spindles dedicated to cotton blended and cotton mélange dyed yarns from 23 per cent in 2011-12 to 29 per cent in 2015-16. Besides, the proportion of revenues derived from these premium yarns also moved up.
The company added 138,280 spindles in the last decade and acquired 83,376 spindles from Birla Textile Mills (increasing spindle capacity to 3,77,688). It commenced production of value-added cotton mélange and cotton-blended dyed yarns. Around 54 per cent of the company’s spindleage are less than 10 years old, translating into high product quality and operating efficiencies.