Vardhman Polytex Ltd. (VPL) has reported a turnover of Rs. 209.45 crores for the quarter ended December 2016 as against Rs. 212.42 crores for the quarter ended December 2015 which included real estate turnover of Rs. 3.32 crores which was noncore, one time activity.
The management strongly believes that value addition in the product will add value in the performance of the company and accordingly the company is steadily shifting its product base from core grey yarn segment to Melange yarn, Snow yarn, Nappy yarn, Compact yarn and Fancy yarns.
In order to achieve the correct product mix, modernization of plants are underway. The company has already completed modernization of its Nalagarh plant by having the compact attachments. The modernization of other plant will be completed in the next two-third quarters. Modernization will help the company to attain up to 50% product mix in the value-added segment by March. This will definitely improve the margin and profitability of the company.
The management is continuously and consciously making its effort to reduce its debt by which fortunes of the company being revived. Its endeavour is to make the company more debt lean and profitable in the coming years
VPL is the flagship company of the Oswal Group having the turnover of Rs. 878.09 crores for the year ended March 31, 2016. The company has its facilities located at Bathinda, Ludhiana and Nalagarh. The installed capacity of the company is 1,96,000 spindles with manufacturing capacity of 1.10 tonnes of grey and polyester cotton yarn along with various value-added products and state-of-art in house dye house of 15 TPD.