Nitin Spinners Ltd., promoted by Mr. R.L. Nolkha, Mr. Dinesh Nolkha and Mr. Nitin Nolkha, was incorporated as a private limited company on October 15, 1992, under the Companies Act, 1956 in Rajasthan by the name Nitin Spinners Private Ltd. Subsequently, it was converted into a public limited company on November 15, 1994, and the name was re-christened Nitin Spinners Ltd. (NSL).
NSL is presently engaged in the manufacturing of cotton yarn ranging from Ne 6 to Ne 80 in single, multifold slub, compact, core spun, Elitwist yarns. The company has the capacity to knit single Jersey, Rib, interlock fabric, Lycra blended fabrics and other possible structures. Knitting is the cheapest and fastest process of converting yarn into fabric. With a production facilities of only 384 rotors in 1993 regular expansion undertaken by the company at intervals has enable it to reach the present capacity of 223,000 spindles and 3,000 rotors for cotton yarn with a installed manufacturing capacity of 50,000 TPA and 49 knitting machines for knitted fabrics with a installed manufacturing capacity of 8000 TPA. The company also has coal-based captive power plant of 10.50 MW and dedicated 132 KVA line from state grid. The existing installed plant & machineries are imported and domestically acquired from known textile machinery manufacturers like Rieter, Toyoda, LMW, Savio, Mayer & Cie, Schlafhorst, Muratec, Truetzchler, etc., and lab equipments from Uster.
Based on growth in export performance, the company was converted into 100 per cent export-oriented unit (EOU) from January 15, 1999. However, the company had opted out of the 100% EOU status and it is converted into domestic unit (DTA) w.e.f. May 16, 2008.
During 2005-06, the company came out with an initial public issue of 2,33,33,945 shares to part-finance its expansion project. The company received encouraging response for the issue which was oversubscribed 18.48 times.
A three-star export house, NSL is also having ISO 9001 Quality Certificate and is also certified for OEKO Tex Standard & GOTS/OE Sustainable Textiles and for Producing Organic and BCI Yarns.
The company has also been awarded the Texprocil Silver Trophy for Second Highest Exports in the category of Grey Fabrics for 2006-07 and 2007-08 and Bronze Trophy for 2010-11, 2014-15 and 2015-16. The company has also been awarded for the first time by Texprocil Bronze Trophy for third highest exports of cotton yarn in counts 50’s and below for 2015-16. The Rajasthan Government has also conferred to the company with State Award for “Excellence in Exports” for 2007-08, 2010-11 and 2013-14.
NSL products are suitable for applications such as high value apparels & garments, undergarments, terry towels, denims, woven and medical fabrics, carpets, mattresses stickings, furnishing fabrics and industrial fabrics. Due to its impeccable quality standards, about 65 per cent of its produce is exported to more than 50 countries across the globe, including the US, Latin America, Middle East Asia, Far East Asian countries, European Union, African countries, etc.
NSL supplies its products to top textile domestic companies particularly of Western and Northern India like Arvind Mills, Raymonds, Decor, Alok, Ashima, Bhaskar, Nandan Exim, Creative Textiles, Pratibha, Maral, RSWM, etc.
Milestones
The chronological sequence of the key milestones achieved by the company and the various expansion and diversification projects undertaken by it since its inception are as tabulated below:
In 1993, the company commenced operations with open-end spinning with 192 rotors each aggregating 384 rotors. In 1994, it become a public limited company and undertook its first expansion project involving installation of one autoconer machine of 216 rotors from Schlafhorst AG & Co., Germany, and increased the number of rotors to 600 Nos.
NSL undertook its second expansion project in the year 1996-97 involving acquisition of two autocoro open-end spinning machines of 240 rotors each thus increasing the installed capacity of rotors to 1080 Nos. It was accredited as ISO 9002 company and it undertook its third expansion project involving two open-end spinning machines of 384 rotors from Elitex, Czechoslovakia thereby increasing the rotors capacity to 1464 Nos. The expansion was carried out mainly for balancing of excess capacity available at preparatory stage.
In 1999, NSL was converted into a 100 per cent export-oriented unit and was also awarded the export house status by Government. NSL undertook its fourth expansion project involving installation of 14,112 spindles to produce combed and carded cotton yarns of 20s to 40s counts. At this expansion phase, it also went for forward integration programme by installing 7 knitting machines.
The company undertook and completed its fifth expansion project 2003-04. This expansion project envisaged addition of 13,104 spindles and 6 knitting machines taking the total installed capacity to 1,464 rotors, 27,216 spindles and 13 knitting machines.
In 2005, NSL undertook and completed its sixth expansion project in February 2005 comprising addition of 408 rotors and 2 knitting machines thereby taking the total installed capacity to 1,872 rotors, 27,216 spindles and 15 knitting machines.
To keep pace with industry developments, NSL embarked upon mega expansion capex plans in 2006 comprising 50,400 spindles and 12 knitting machines along with captive power plant of 7.66 MW FO based and 10.50 MW thermal power plant. The project cost was Rs. 218 crores which was funded by way of term loan of Rs. 135 crores, equity capital of Rs. 49 crores and internal accruals of Rs. 34 crores. To fund this project, the company brought public issue of Rs. 49 crores and was listed on the stock exchanges on February 2, 2006.
To further enhance the project scope, during 2008, the company implemented an expansion project for addition of 2,000 rotors at a total capital outlay of Rs. 34.35 crores with term loan of Rs. 26 crores.
The company undertook major capacity expansion in 2014-15 by installation of 72,480 spindles and 18 knitting machines at a project cost of Rs. 286 crores, with term loans of Rs. 200 crores. The commercial production on expanded capacities commenced ahead of schedule from February 15. The project is entitled for subsidy benefits under TUFs of Central Government and RIPS by Rajasthan Government.
For 2016-17, the company is implementing another major capacity expansion by installation of 72,960 spindles for manufacturer of premium fine count compact yarns at a project cost of Rs. 290 crores, with term loans of Rs. 215 crores. Commercial production on expanded capacities is expected to commence in the last quarter of 2016-17.
During 2015-16, the company clocked a turnover of Rs. 767 crores out of which exports totalled Rs. 531 crores. The operating profit before interest, depreciation and tax was Rs. 137.76 crores and PAT was Rs. 44.16 crores.
Dinesh Nolkha, Managing Director, Nitin Spinners Ltd.
Mr. Dinesh Nolkha, aged 46 years is the Managing Director of Nitin Spinners Ltd., Bhilwara, presently looking after the day-to-day operations, Marketing, Exports and Finances of the company.
Mr. Nolkha is Vice President of the Mewar Chamber of Commerce & Industry since 2015.
Born in 1970 in Bhilwara (Rajasthan), Mr. Nolkha completed his initial schooling from Bhilwara & Ajmer and graduation from Jaipur. After graduation he went to Mumbai for pursuing professional course of Chartered Accountancy and Management Accountancy. He served as articled trainee with Sharp & Tannan, a leading firm of chartered accountants. He has secured fellow membership of the Institute of Chartered Accountants of India and the Institute of Cost & Management Accountants of India. He had a brilliant academic career having secured the 4th rank on all-India basis in ICMA final exams in 1991 and the 43rd Rank in ICAI final exams in 1992.
After completing his professional education, the entrepreneur instinct in Mr. Dinesh Nolkha prompted him to enter the textiles industry. He was instrumental in setting up Nitin Spinners Ltd. in 1993 with an initial investment of Rs. 3 crores. With sustained expansion, the total capital investments in the company have grown to over Rs. 850 crores.
Nitin Spinners is one of largest manufacturers of cotton yarn & knitted fabric with installed capacity of 225,000 spindles, 3,000 rotors and 49 knitting machines, producing 500,000 tpa yarn and 8,000 tpa fabrics. The company is having global presence with exports to more than 50 countries including the European Union, the US, the UK, China / Hong Kong, Latin America, Africa and other Asian countries.
The turnover of the company for 2015-16 was Rs. 767 crores, out of which exports automated to Rs. 531 crores. The company employs about 3,000 persons.
Accreditations and Awards
Nitin Spinners is certified to ISO 9001, OEKO Tex Standard & GOTS/EKO Sustainable Textiles and for producing Organic and BCI Yarns.
The company has been awarded the Texprocil Silver Trophy for Second Highest Exports in the category of Grey Fabrics for 2006-07 and 2007-08 and the Bronze Trophy for 2010-11, 2014-15 and 2015-16. It has also been awarded for the first time the Texprocil Bronze Trophy for third highest exports of cotton yarn in counts 50s and below for 2015-16. The Rajasthan Government has also presented the company the State Award for “Excellence in Exports” for 2007-08, 2010-11 and 2013-14.