Morarjee Mills recently undertook a backward integration project to integrate the manufacturing processes and to reduce dependence on vendors of yarn and weaved fabric. The expansion project is intended to replace the outsourcing of raw materials (yarn and fabric) and enable the company to achieve higher levels of integration of spinning, weaving and printing activities and thereby improve the margins.
The expansion project comprised the spinning facility expansion by 40,128 spindles, weaving capacity increased by 112 looms, printing capacity enhanced by 78 lakh meters per annum, and installation of “Ready for Dyeing” (RFD) machinery.
The weaving, printing and processing facility was commissioned in March 2016 and the spinning facility was commissioned in September. The company registered total revenue of Rs. 38,182 lakhs in FY17.