Rs. 955 cr. massive expansion underway
Incorporated in 1992 in Bhilwara with a small capacity of only 384 rotors, Nitin Spinners over the years has expanded its operations to include open-end yarns, ring-spun yarns, blended yarns, knitted fabrics, and finished woven fabrics. It now has an installed capacity of 3,07,344 Spindles and 3,488 Rotors, producing 75,000 tons of yarn per annum. It also has an installed capacity of 63 Knitting Machines, producing 8,500 tons of knitted fabrics per annum and 168 looms and dyeing, printing, and finishing capacities to make approximately 300 lakh meters of fabrics per annum.
Nitin Spinners Limited is India’s leading and one of the world’s most efficient manufacturers of cotton yarn, blended yarn, knitted fabrics, and finished woven fabrics. We have progressively enhanced our domestic and international presence across markets backed by our product innovation, in-depth R&D capabilities and sustainability. With efficient integrated operations and a clear vision for the future, Nitin Spinners has successfully executed its strategic growth plan in line with evolving need for textile products to drive sustainable development.
Nitin Spinners boasts of a vast product presence across India and over 50 countries spread across the globe. Emerging as a solution provider, the Company has slowly and steadily made its presence in key international markets such as the Unites States of India (USA), the United Kingdom (UK) and European nations. With a presence in these key geographies, the Company is well-suited to capitalise on the emerging opportunities in these markets and expand our presence in emerging markets.
Strengthening our capacities Amid the pandemic, we acted swiftly to stay on track with our business goals and invested strategically in the most critical areas of our long-term growth.
We introduced new initiatives and measures across functions, while systems and processes were strengthened manifold to create an enabling environment for the Company to pursue growth.
Our organisational capabilities delivered a strong performance. We have also been successful in almost doubling our international business. While the COVID outbreak was undoubtedly a catastrophic event, we saw in it the opportunity to fast-track our growth process to emerge as a globally recognised player in the textile industry. We focused on enhancing our research and development (R&D) capabilities in such a way that it helps us in creating an innovative portfolio of products that fulfils the unmet and unarticulated needs of our customers.
Pursuing sustainability
We undertook several targeted measures during the year to help us remain on track toward our goal of sustainable, long-term growth. The infusion of new technologies and talent pool across different levels and functions has ushered a new level of dynamism into the organisation as we gear up to become future-ready across functions, systems, processes, and people.
We are excited by the growth opportunities in our textile industry, underpinned by the increasing demand for e-commerce and more sustainable clothing solutions. We focused on offering products made from sustainable fibres like organic and BCI cotton or recycled fibres. Our unique product portfolio, expertise in understanding the best material choices, and customerfocused innovation capabilities help us deliver textile solutions that are sustainable by design. This helps us to contribute to a sustainable ecosystem and allows us to grow our existing customer base as well as service new customers.
Road ahead
Our ability to create value is a direct result of the significant efforts and resilience of our people. To capitalise on growing demand and further strengthen our product range ,we are undergoing capacity expansion at our existing facilities at a cost outlay of Rs. 955 crore enhancing capacity of all the three segments. The expansion plans will complete in year 2023-24.
REVENUE FROM OPERATIONS
Nitin Spinners has registered quantum jump in FY 22 revenue at Rs. 2692.32 Crores against Rs. 1624.41 Crores in the previous year, registering an increase of 65.74%. The revenue of Yarn increased by 71.51% during current year from Rs. 1095.22 Crores to Rs 1878.43 Crores. The revenue from Yarn constitutes 69.77% of the total revenue. Revenue of Fabric has increased from Rs. 423.71 Crores in the previous year to Rs. 679.52 Crores during year under review and registered growth of 60.38%. The Fabric revenue constitutes 25.24% of the total revenue from operations.
The Exports of the Company has almost doubled to Rs. 1953.63 Crores in the current year from Rs. 1016.57 Crores in the previous year registering an increase of 92.18%. The Exports constituted 72.56% of the total revenue during the year. The increase in exports were mainly led by robust demand of cotton yarn in international markets, introduction of new range of products and restrictions on import of products made from cotton produced in Xinjiang area of China by USA Government.
Capacity expansion
Mr. Dinesh Nolkha, Managing Director, Nitin Spinners, said : “As part of the overall expansion project, Nitin Spinners is adding capacities in spinning, weaving, knitting and finishing departments. “We will be increasing our spindleage from 3.32 lakh equivalent spindles to about 4.88 lakh equivalent spindles, increasing our capacity from 75,000 metric tonnes to about 110,000 metric tonnes per annum. Similarly, our knitting capacity as well as our weaving capacity will also be ramped up by about 35% each”.
Nitin Spinners is investing in increasing the manufacturing capacity for blended yarn. The company has been able to use sustainable recycled fibres, recycled cotton, organic cotton and blends of fibres like viscose and modal. Currently, Nitin Spinners has a capacity of 28,000 spindles for manufacturing blended yarn. The company is adding 45,000 spindles as part of the overall expansion plan specifically for blended yarns.