The company plans to invest Rs 955 crore for capacity expansion, which will be funded by Rs 300 crore of internal accruals and Rs 655 crore of debt
Nitin Spinners is India’s leading manufacturer of cotton yarn and blended yarn with knitted and woven finished fabric. The company’s leadership in cotton and blended yarn along with fabric manufacturing is driven by delivering international quality standard products with continuous investment in latest technologies. Elaborating, Managing Director Dinesh Nolkha says, “We have achieved the highest ever revenue of Rs 2,692 crore, growth of 66% over the previous year along with highest-ever profitability. We have doubled our exports during the current year as compared to the previous year.”
“At present we are operating at nearly optimum capacity and strategically enhancing capacity in all these segments, including spinning, knitting and woven fabric to meet the increasing market demand. We are also increasing our blended yarn production capacity substantially and are investing Rs 955 crore for capacity expansion, which will be funded by Rs 300 crore of internal accruals and Rs 655 crore of debt. We aim to capture the benefit of growing market opportunity in international as well as domestic sectors and strengthen the company’s position by widening our product portfolio as well,” he adds.
Impressive Financials
Nitin Spinners clocked revenues of Rs 2,692 crore in FY22 as compared to Rs 1,624 crore in FY21, registering a growth of 66%. Apart from operational efficiency and value-added products, increased selling rates due to higher raw material price also resulted in higher revenue. During the year the company produced 71,850 metric tonnes of yarn as against 63,973 metric tonnes in the previous year. Out of the yarn produced, 24% is exclusively consumed in the knitted fabric and woven fabric division. Knitted fabric production was to the tune of 8,057 metric tonnes during FY22 and woven fabric production for the year was 269.47 lakh metres.
Production Capacities
The finished fabric production was to the tune of 213.73 lakh metres in FY22. In spinning, the capacity utilisation level was around 96% for the last financial year while the weaving capacity was 95%, knitting was 85% and finished fabric was around 83%. As part of the overall expansion project, Nitin Spinners is adding capacities in spinning, weaving, knitting and finishing departments. “We will be increasing our spindleage from 3.32 lakh equivalent spindles to about 4.88 lakh equivalent spindles, increasing our capacity from 75,000 metric tonnes to about 110,000 metric tonnes per annum. Similarly, our knitting capacity as well as our weaving capacity will also be ramped up by about 35% each,” informs Nolkha.
Blended Yarn
Nitin Spinners is investing in increasing the manufacturing capacity for blended yarn. The company has been able to use sustainable recycled fibres, recycled cotton, organic cotton and blends of fibres like viscose and modal. Currently, Nitin Spinners has a capacity of 28,000 spindles for manufacturing blended yarn. The company is adding 45,000 spindles as part of the overall expansion plan specifically for blended yarns.