Investing in best global technology to offer high quality products
To achieve anything remarkable, a company has necessarily to take continuous, well-thought measures. This seems to be the motto at Nitin Spinners. Over a period of 25 years, the company has gradually but surely taken steps towards expanding into different sectors. Mr. Dinesh Nolkha, Managing Director of the company, shares the growth story of the company.
Nitin Spinners was established in 1993 in Bhilwara as a small-scale unit with a capacity of only 384 rotors. In that year the open-end production was about 4-5 tonnes a day. Gradually, the company started growing. The success journey of Nitin Spinners thus began where its efforts yielded results. The Government’s major decision in the late 1990s of opening Indian markets through liberalization and globalisation had its positive impact on the business community of the country. Nitin Spinners benefited from the changing economic system. It was enough to take advantage of this change, hence was able to further expand business.
A business is successful only when it learns to function efficiently by maximizing production with minimal resources. Hence, Nitin Spinners decided to expand the open-end spinning capacity by upgrading the technology. This was important since the machines eliminate wastage and increase production significantly. This enabled the company to expand the capacity of rotors. By 1998, 1,600 rotors were running.
In 1999, the Government introduced the Technology Upgradation Fund which mandated value addition in the company which gave impetus to the company to expand its capacity as well as diversify. The company, through its relentless efforts has always made sure that it is expanding and moving towards its vision.
In the last 20 years, the company has been fortunate enough to see continuous growth. The compound annual growth rate in volumes and financial numbers has been more than 20%.
Apart from this, the company also diversified its product range. It established its first ring spinning plant in 2000 with about 14,000 spindles. A knitting facility was added in 2002 with 7 knitting machines. While expanding the company ensures that all the sectors are paid equal attention.
In the spinning sector, as of now, 300,000 spindles are in operation producing 180 tonnes of yarn every day. The open-end capacity increased to 3,500 rotors producing 25 tonnes of yarn. As of now, knitting produces 800 tonnes of knitted fabric a month.
Another reason for Nitin Spinners to enter the knitting sector was that it was instrumental in strengthening its association with the client. The company aims to keep the consumer satisfied for which customer interaction is very crucial. The company was able to understand the need of its customer which helped the business.
Nitin Spinners guarantees that it seizes most of the opportunities available. In the year when free and fair trade prevailed and the Multi-Fibre Arrangement was dismantled 2005 it was speculated that if India does not fasten its growth it will lose to other Asian Competitors. Nitin Spinners saw this as an opportunity to enter into international trade. It started exporting its products to Europe and America.
Currently, the company is looking into expanding into weaving. The reason for this is that after having a tremendous experience as the company started yielding high profits from the yarn business.
The company also has a range of experienced members on its Board. Mr. Dinesh Nolkha, who is the Managing Director as well as the co-founder, has been instrumental in expanding the company through his entrepreneurial skills and hard work. Mr. Dinesh Nolkha, who is an FCA & FCMA by qualification, has 26 years of industrial experience. He is also the co-founder of the company when it started with production of cotton yarn. Gradually, the business started expanding after introducing ring spinning.
Similarly, the expansion of the company’s profile to the weaving sector would be supervised by Mr. R.L. Nolkha, Chairman of Nitin Spinners. He is the most suitable person for this since Mr. R.L. Nolkha was one of the pioneers in the weaving industry in Bhilwara. Mr. Nolkha was associated with LNJ, Bhilwara, for 22 years from 1976 to 1997. He was also Managing Director of BSL Ltd. He started the first processing house in Bhilwara known as Bhilwara Processes Ltd. which later on became a nationwide brand.
The company further expanded its profile to worsted spinning and woollen spinning. Due to his great expertise in this sector the company requested Mr. Nolkha to join the company to provide his guidance for expansion in the textile industry.
As a Management Graduate with more than 19 years of industry experience, Mr. Nitin Nolakha is the Executive Director of the company. He is involved with the day-to-day activities and operations of the factory and has expertise in the cotton procurement.
Choosing Bhilwara for setting up the parent unit was a wise decision taken by the company. Today, Bhilwara produces about 80 million meters of fabric every month. Its strategic location is another plus point. It is located on the borders of Gujarat and Madhya Pradesh which are cotton-producing States. Bhilwara has a large production of J34 cotton. The cotton is available within radius of 250 km and nearly 1 million (10 lakh) bales are produced from this region. In 2018 Bhilwara was one of the largest base of cotton yarn for weaving purposes. At present, the company has two production units. One in Bhilwara which is a parent unit with a capacity of 2,25,000 spindles and the other one at Chittorgarh. Both these facilities are a composite unit.
The venturing into the apparel sector was also a golden opportunity for the company. The apparel sector business does not have organized players. The industry is fragmented with everything taking place on a very small level. The company aims to provide what every brand needs. Nowadays, when quality is the priority the top brands need good fabric. Nitin Spinners, by providing its quality services, would make sure that every brand gets the material from one place itself. Nitin Spinners concentrates only on the non-denim apparels.
Nitin Spinners is also in the process of setting up complete processing house. The weaving capacity is about 100,000 meters a day, which is produced using 200 machines. The company believes in having reliable technology to deliver quality products. For blow rooms and carding, the company uses the products of Trutzschler and Rieter. The preparatory machines such as the draw frames as well the Combers are from Rieter. The ring frames are from Rieter, Toyota and LWM. The winding set-up is from Muratec and Savio. The TFO Twister is a product used from Savio. Knitting is done the using the Mayer and Cie. technology and weaving is done on Picanol looms. Testing of the yarn is from USTER. All online Spindle monitoring is done by Pinter. Most of these technologies are from European countries.
The company has always been environment conscious since it uses solar power. In total, it uses 10 mega watt of solar power to run both the processing units. Since it is a complete processing plant the company has ensured that there is a ZLD treatment system which is the Zero Liquid Discharge. This system utilizes technology to minimize the liquid waste so that at the end of the process the wastage is zero and there is no pollution to the environment around.
One of the major qualities of the company is the strategies it uses. It ventures into new things but is very careful about its consequences. It takes everything slow and steadily and instead of just giving the quantity of expansion it concentrates more on quality. For the company, customer satisfaction is of the utmost importance.
When asked about the company’s unique selling point, Mr. Dinesh Nolkha said: “Good brand image, commitment to quality and timely delivery are things that the company is particular about. The consistency of quality products and to deliver these products in time is something that the company firmly believes in. Due to it’s the reputation of the company has significantly increased. The company is present in nearly 60 countries. The company exports 65% of production”.
The rule of thumb for the company is applicable to the domestic markets as well. This is the reason a lot of brands have collaborated with them.
Mr. Nolkha further said that when people become successful, they tend to forget their roots which has adverse effects as well. Spinning is the base of the company. The company is diversifying but it does not expand at the cost of the existing processes. The technology used for spinning is growing but the main problem is the usage of older machines who need more manpower. Therefore, the company’s vision will be solving this problem while concentrating on expanding as well. The production is being consumed by the domestic market and there are various variables such as Government foreign policies, free trade, international trade practices, etc., which the company will be dealing with in trading international. The company is working relentlessly towards balancing all these factors.
One of the major achievements of the company has been having on its Board Mr. R.L. Nolkha to give his guidance through his wide experience which he has acquired by working in this industry for 25 years. Another major breakthrough for the company was to become a listed company in the year 2006. It is very difficult for a textile-based company to become a listed company as people believe that there is no transparency in a textile-based company.
Through the company’s efforts, it was able to achieve public confidence which in turn improved the transparency and organization of the company. This also changes the brand image of the company in a positive way. The company started to be to more professional. Another achievement for the company was the change from being a yarn supplier to fabric supplier. In the next five years, Mr. Dinesh hopes to become a predominantly fabric supplier.
The year 2018 as proved to be very beneficial for the company as the turnover for the year Rs. 1,145 crores. Asked about the target for next 3-4 years, Mr. Dinesh Nolkha said that he expects the turnover to be Rs. 2,000 crores.
With over 25 years of experience, Nitin Spinners has already created a mark for itself. The company displays a mix of both, the dynamic nature of a young businessman and the patience through the guidance of a person from the older generation.