Pioneering Growth with Strategic Capacity Expansion
Nitin Spinners, one of India’s leading manufacturers of cotton and blended yarn, knitted fabrics, and woven fabrics, has announced a massive Rs. 1,100 crore investment to expand its production capabilities. This strategic move aims to strengthen its position in the textile industry by significantly increasing its spinning, weaving, dyeing, and finishing capacities. With a focus on high-value products, sustainability, and operational efficiency, the company is set to achieve new milestones in global textile manufacturing. Out of the total investment Rs. 800 crores will be financed through debt and balance will be from internal accruals.
Scaling Up Production to Meet Growing Demand
The investment will see Nitin Spinners augment its existing infrastructure across spinning, weaving, and finishing. Currently, the company has a spinning capacity of 110 tonnes per annum (TPA). With the addition of approximately 66,096 new spindles, the production capacity will increase by 22.4 TPA, bringing the total to around 132 TPA over the next 24 months.
Similarly, in the weaving and finishing segment, Nitin Spinners is poised for a significant leap. The current capacity of 40 million meters per annum is set to expand by an additional 35 million meters, bringing the total to 75 million meters per annum. This expansion will be supported by the installation of approx 66,096 Spindles with production capacity of 22,400 MTPA, 240 Airjet/Rapier looms, along with state-of-the-art dyeing and finishing facilities, further strengthening the company’s ability to cater to the growing global demand for premium-quality textiles.
Robust Revenue Growth
Nitin Spinners clocked a total revenue of Rs. 2,464.36 crore, reflecting a 17.0% year-on-year increase for the first nine months of FY25. This strong performance underscores the company’s resilience and growth momentum.
Commenting on the results, Mr. Dinesh Nolkha, Chairman and Managing Director, stated: “The performance for Q3 and 9M has been stable, with improved demand across our product segments. This gives us confidence in sustaining growth and creating value across our operations. Our strategic initiatives are delivering results, and we see significant opportunities for further expansion. As part of our growth strategy, we are announcing capital expenditure across the existing verticals to further enhance our capabilities and widen our product offerings. With momentum building in key areas, we remain focused on improving efficiencies and value additions to drive long-term growth and profitability.
Diversifying the Product Portfolio for Market Leadership
A key driver behind this expansion is the diversification of Nitin Spinners’ product portfolio. The company is introducing premium specialty yarns, including Cotton-Linen, Cotton-Modal, Cotton-Viscose, and dyed yarns, aimed at catering to high-margin markets. The move into yarn-dyed and special finish fabrics is expected to unlock new growth opportunities, particularly in the fashion and apparel segments.
Additionally, the expansion will enable greater production efficiency and integration. Approximately 60% of the newly added spinning capacity will be used in-house for fabric manufacturing, ensuring better quality control, reduced dependency on external suppliers, and optimized operational costs.
Sustainability and Cost Optimization: A Step Towards a Greener Future
In line with its commitment to ESG (Environmental, Social, and Governance) principles, Nitin Spinners is prioritizing sustainability in its expansion plans. The company is investing in renewable energy infrastructure, adding 14MW (DC)/11MW (AC) of solar power capacity to reduce its carbon footprint. Additionally, initiatives like zero-liquid discharge, zero coal usage, and waste reprocessing are being integrated to enhance operational sustainability.
These efforts align with the rising global demand for environmentally responsible sourcing. With many international brands prioritizing sustainability, Nitin Spinners’ green initiatives will enable it to secure new partnerships and reinforce its leadership in sustainable textile manufacturing.
Enhanced Profitability Through Value Addition and Market Expansion
With a focus on high-value, finished woven fabrics, the expansion will drive higher-margin opportunities. The additional 35 million meters of woven fabric capacity will allow the company to strengthen its presence in formal wear, fashion wear, and casual wear segments, catering to menswear, womenswear, and kidswear.
Moreover, Nitin Spinners is entering new market segments such as furnishings and specialized technical textiles, including fire-retardant dress materials. This diversification is expected to open new revenue streams and contribute significantly to long-term profitability.
Government Incentives to Bolster Growth
The expansion project qualifies for multiple incentives under the Rajasthan Investment Promotion Scheme (RIPS) 2024. These include interest subsidies, capital subsidies, and electricity duty benefits, which will further enhance the project’s financial viability. The support from the government underscores the strategic importance of Nitin Spinners’ expansion and its role in boosting India’s textile manufacturing sector.
Leveraging Cutting-Edge Technology for Competitive Advantage
Nitin Spinners continues to invest in best-in-class technology and state-of-the-art machinery to enhance cost efficiency and production turnaround times. The company’s ability to reprocess waste material further optimizes raw material costs, while its captive solar power plants significantly reduce energy expenses. Additionally, streamlined logistics and a favorable plant location near cotton-producing regions ensure a faster turnaround time (TAT) and cost-effective operations.
A Bright Future Ahead
Nitin Spinners’ Rs. 1,100 crore investment marks a transformative phase in the company’s journey. With a focus on capacity expansion, product diversification, sustainability, and cost optimization, the company is well-positioned to capture new market opportunities and drive long-term growth. As global demand for high-quality, sustainable textiles rises, Nitin Spinners is set to emerge as a frontrunner in the industry, reinforcing its legacy as a leader in India’s textile manufacturing landscape.
