Nitin Spinners Ltd. has announced the setting up of an integrated textile unit at Chittorgarh in Rajasthan for manufacturing apparel fabrics at an estimated project outlay of Rs. 650 crores.
Nitin Spinners is one of the leading producers of 100% cotton yarn and knitted fabrics at its plants at Hamirgarh in the Bhilwara district of Rajasthan. The company has an installed capacity of 223,056 spindles and 2,936 rotors, producing 50,000 tons of yarn per annum.
To move up the value chain, Nitin Spinners has also set up its Knit Fabric Division with 63 knitting machines with production capacity of 9,000 tons per annum. The company exports about 60% of its production to more than 50 countries.
Nitin Spinners produces a wide range of cotton yarns ranging from Ne 5 to Ne 24 in open-end and Ne 10 to Ne 80 in ring-spun yarns, with single and multi-fold types. The company also produces value-added yarns like Slub, Compact, Core Spun, Organic and BCI/TBC certified yarns and yarns manufactured from Supima and Giza cotton. The Knitted Fabric Division is equipped to knit various types of structures to meet the varied demands of customers for different end applications.
Product applications
The company products have multiple applications such as high value apparels, terry towels, all types of knitted garments, denims, furnishing fabric, sheetings, medical and industrial fabrics, mattress stickings, tea bags, etc. Its marketing strategy is based on the product type and the end user segment.
Nitin Spinners interacts with end-customers, understands their specific needs and accordingly prepares its production plans. The company has reached a reasonable capacity strength in grey cotton yarns and knitted fabrics with a wide range of product offerings.
New project
Looking at promising long-term growth prospects of the Indian apparel sector, Nitin Spinners is planning to enter the finished fabrics segment can cater to the growing needs of the sector. The apparel market is expected to grow at a CAGR of 11% on the back of growth drivers like the increase in per capita income, growing youth population, rapid urbanisation, improved standard of living in rural areas and greater penetration of online retailers.
The growing size of the apparel trade will need reliable fabric suppliers having economies of scale and be able to fulfil large orders. At present fabric processing in India is an unorganised and decentralised sector, with very few players operating on a big scale. With the GST implementation it will be more competitive to operate in a situation where multiple stage taxes are eliminated.
Keeping the above factors in mind, Nitin plans to put up integrated textiles units with facilities from spinning to processing as a greenfield project. The company has already purchased about 50 acres of land around 70 km from existing site and the same has been converted for industrial use.
The unit will have the capability to manufacture all types of processed fabrics to meet the complete requirements of apparel manufacturers. In the first phase it is planning an estimated capex of about Rs. 650 crores for setting up facilities for spinning, weaving, processing of woven and knitted fabrics.
Nitin Spinners will be able to supply all types of finished woven as well as knitted fabrics to all the leading apparel manufacturers in India. It is also targeting international fashion brands to cater to their fabric requirements.
The new project site is located on the national highway, well connected with ports and major consumption centers of northern and western India. Proximity to the existing facilities will give it cost advantages. Further it will have state-of-art processing and dyeing machineries to ensure international quality supply.