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THE TEXTILE MAGAZINE
AUGUST 2011
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pellent), ETI, etc.
Sewing thread
Another very important segment
is sewing thread which
contributes to 10 per
cent of total revenues.
The group entered the
thread business in 1982
as a forward integra-
tion to its yarn business.
VTL’s current capac-
ity is 33 tpd across four
plants, in Punjab, Tamil
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Pradesh. In 2002, the
company entered into
a strategic alliance as a
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manufacturing and dis-
tribution of its branded
sewing threads in India.
In 2008, this business
was spun off into a new
company, Vardhman
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and entered into a 51:49
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The JV has increased the
production capacity for
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rameters.
VTL ventured into manufacture of
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subsidiary Vardhman Acrylics Ltd.
The plant was set up in Gujarat in
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pan Exlan. The company has capac-
ity of 20,000 mtpa. It offers world
class wet spun technology with highly
automated, microprocessor control-
led systems. The company’s products
are marketed under the brand name
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hand-knitted yarns, blankets, jerseys,
sweater, saris, upholster, carpets, etc.
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venture partnership of 51:49 with
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manufacturing world class shirts. The
new JV started production during
the fag-end of 2010-11. The current
capacity on a full operational basis
is 1.2 million shirts per year, and the
company will be adding some capac-
ity and take it to 1.8 million shirts in
the near future.
VTL’s yarn exports are primarily
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and South Korea. South America is
another market that the company is
focusing on. As far as fabric is con-
cerned, exports are mainly to Bang-
ladesh and Sri Lanka.
OutLOOk fOr 2011-12
Vardhman Textiles Ltd. achieved a turnover of Rs. 960.22 crores during the quarter ended June 30,
2011, as against Rs. 806.71 crores in the corresponding quarter last year. !e company has achieved
PBDIT and PAT of Rs. 43.63 crores and Rs. 43.08 crores respectively during the quarter as against
Rs. 183.25 crores and Rs. 78.72 crores respectively.
For the second quarter (July-September 2011), the management expects that there will not be fur-
ther mark to market losses on inventories provided the cotton prices don’t move southward further.
Meanwhile, the business scenario looks tough for the remaining part of the year. But the manage-
ment will remain vigilant and deal with the situation with prudence and foresight. Nevertheless, the
year will be full of challenges with their impact on the company performance.
COrpOrAte newS