The Indian textiles industry, currently estimated at around $1 billion, is estimated to grow further. By 2030, India will have 68 cities with a population of more than one million each. Growing urbanisation leads to increasing demand for denim. Denim continues to be the preferred fabric with the potential to expand because of the fashion quotient, its stretch, lightweight, styling and detailing. The denim category is growing in India at a CAGR of 15%, while the global market is growing at 3-5%.
Suryalakshmi Cotton Mills Ltd. (SCML) has emerged a leading integrated manufacturer of finest yarn, premium denim fabric and garments, while continuing its domestic operations for the last five decades. Driven by its operational excellence and value-added quality products, the company is the most preferred original denim manufacturer (ODM) for the popular brands across the world. This has enabled the company to acquire a dominant market share across the mid and premium denim segment.
Suryalakshmi delivers cutting-edge designs to customers with the help of its integrated modern state-of-the-art manufacturing facilities. One of the reasons behind its competitive advantage has been its presence across the entire value chain, right from yarn manufacturing to production of finished garments. It understands and evaluates the changing trends and stays ahead of the curve by predicting the future trends.
Net sales of the company stood at Rs. 76,191.59 lakhs in FY16-17 against Rs. 75,979.80 lakhs in FY15-16. However, its strong operational excellence and higher realisations helped it maintain profitability levels. Its PBT and PAT stood at Rs. 3,241.52 lakhs and Rs. 2,186.70 lakhs respectively.
Starting primarily as a yarn manufacturing company, over the years the company has evolved as a fabric and garments manufacturer with continuous and seamless integration. Today, it is engaged in producing cotton, polyester and blended yarns across its four manufacturing units. The company’s key strength lies in delivering quality products to its domestic as well as international customers and proactively investing in cutting-edge spindles.
Manufacturing capacity
With state-of-the-art manufacturing units located in Telangana and Maharashtra, the company has an installed spindle capacity of 86,352 which is expected to reach 95,000 by the next financial year. Over the years the company has not just increased its capacity but has also widened its portfolio with value-added yarns, thus complementing its captive need for niche products. With an average spindle age of 11 years, the spindles not only yield optimum result but also enable it to adhere to the Uster standards, the global spinning benchmark.
Suryalakshmi has reached 93% of average capacity utilisation levels and has increased production of value-added products. It has launched many new design variants and participated in several global exhibitions to showcase its new line of products.
Over the course of FY16-17, the company also managed to bring down the costs and improve productivity. Its manufacturing unit at Amravati with 25,000 spindles is fully operational, delivering yarns of high quality and large variety. From yarns that comprise 5%, of USTER to garments with AQL 1.5% system, it delivered best-in-class quality products.
The company continues making strategic investments in strengthening R&D processes to comprehend customer preferences in line with the latest industry trends. It has collaboration with leading designers from Europe and Asia to give their insights for a better customer experience.
Further, its captive power plant in Ramtek, Maharashtra, caters to the power requirements of its denim manufacturing process. With assured raw material linkages, this is an integral part of the backward integration process aimed at reducing operating costs.
A state-of-the-art denim manufacturing facility of the company is located at Ramtek with an installed capacity of 40 million metres per annum.
Summer and winter collections
In order to make itself a truly global company, Suryalakshmi has formed a fashion team which studies ongoing trends in the global fashion industry. The efficacy of this approach is vindicated by the company’s ability to launch eye-catching spring-summer and autumn-winter collections every year. This initiative has helped it emerge as an abiding partner instead of just another manufacturing vendor for its niche portfolio of global partners.
Over the years Suryalakshmi has spread its wings not just across the length and breadth of India but also at the global level. Today the company has a presence in 27+ countries across North and South America and Asia and is associated with some of the top brands of the industry like Lee, Wrangler, Levi’s, JC Penney and Walmart, among others.
Garment
SCML has its presence across the value chain of the fashion wear segments, ranging from menswear, women wear to kids wear. It continuously focuses on product development backed by its collaboration with insights from fashion experts from around the globe.
Exports
Exports of the company during the current year at Rs. 150 crores registered a growth of 7% over the previous year. The growth in terms of volume is however 15%. The company continued its dominance in the fiercely competitive international markets. Suryalakshmi also could consolidate its position by supplying fabric to various garment manufacturing countries like Nicaragua, Lesotho, Egypt, Madagascar, Tanzania, Cambodia, Indonesia, Vietnam, China, Sri Lanka and Bangladesh.