Banswara Syntex Ltd. (BSL) clocked a turnover of Rs. 924 crores, a growth of 14 per cent over Rs. 809 crores in 2010-11. The company’s turnover in value for yarn increased by 13 per cent, fabric by 14 per cent and garments by 29 per cent. This confirms the company thrust on value-added fabrics and readymade garments.
Production of synthetic yarn during 2011-12 increased to 279 lakh kg, up two per cent, and that of worsted yarn increased to 14.02 lakh kg, up by 16 per cent. Production of garments increased by seven per cent to 21.93 lakh pieces. During the year the company produced more of value-added fabrics and technical textiles. However, the overall production of fabric at 311 lakh metres was down by four per cent. Over the previous year the company started production of shirting fabric also.
During the year, the textile industry faced global recession and the Indian currency witnessed sharp fluctuations against the US dollar. The finance cost also increased considerably. Profit before interest, depreciation and tax for 2011-12 was Rs. 136 crores against Rs. 139 crores in 2010-11.
During the year, the export turnover of the company, excluding export benefits, was at Rs. 472 crores as against Rs. 461 crores during 2010-11, up by about 2.37 per cent. The growth took place in all the three segments of yarn, fabric and garments. The export performance of the company was adversely affected by the sharp fluctuations in the exchange rate of the Indian rupee against the US dollar.
During the year, Banswara Syntex marketing as well as design and development teams collected feedback in the international market by participation in trade fairs, meeting customers, etc. The company has added a few more new customers worldwide. Its design studio for fabric and garments helped it tap new areas/customers domestically and internationally.
Expansion, diversification
During the year the company invested Rs. 82.64 crores for capacity expansion in all the areas of operation. The ring spinning capacity increased by 2,004 spindles, besides addition of 112 looms in the weaving section. One mercerizing machine and one raising machine were installed in the finishing house and one line each added for production of trousers and jackets. The company discarded/sold 4,908 spindles, 144 airjet spindles and 12 looms during the year.
The total production capacity of the company as at March 31, 2012, for yarn production was 1,43,416 ring spindles, including 14,400 spindles for worsted yarn spinning, 592 air jet spindles, 340 shuttleless looms, 28 air jet jacquard looms, seven stenters with processing capacity of five million metres a month and 2.95 lakh pieces of garments per month.
The company has plans to invest about Rs. 34 crores for expansion and modernization of the plant during 2012-13. This would add 8,256 ring spindles, 6,720 worsted spindles, 30 looms and some yarn dyeing machines to increase yarn dying capacity by two MT per day.
Joint venture
Carreman Fabrics India Ltd., the joint venture company, has a weaving unit with an installed capacity of 60 rapier looms of its own alongwith 17 additionally installed looms. The company has 50 per cent stake in JV with an equal stake from Carreman of France.
During 2011-12, the JV company produced 62.77 lakh metres of grey fabric as against 64.83 lakh metres in the previous year. Net profit increased 21 per cent to Rs. 29.21 lakhs from Rs. 24.13 lakhs.
BSL, as a measure of further diversification of business, has entered into another joint venture agreement with Treves S.A., France, with 50:50 partnership and incorporated a special purpose vehicle (SPV) to be known as Treves Banswara Pvt. Ltd. They will produce laminated knitted and woven textiles for internal furnishing of trains, buses and other automobiles.