The company has strengthened its product lines with more automation to be able to take advantage of the growing demand for its products
Rajapalayam Mills, a manufacturer of yarn of different counts, has commissioned a fully integrated fabric unit with a capacity of 122 looms. Though there was subdued demand for fabric due to lockdown imposed during the first half of FY 2020-21, it has started picking up from the third quarter and the fabric unit has reached its optimum utilisation level from the last quarter. The fabric unit has been producing special value-added fabric especially from its Jacquard looms and the quality is well-appreciated by customers in the export market. The unit has produced and sold 41 lakh metres of fabrics so far and expects better revenue and profitability in the coming years.
Rajapalayam Mills is also planning to expand its weaving capacity by adding 30 looms, which will increase the existing looms’ capacity from 122 looms to 152 looms in the existing loom shed without incurring any additional construction cost. The additional looms will commence commercial production during the fourth quarter of the current financial year. The total outlay for all the above capex proposals is Rs 180 crore. Further, as a part of its continuous thrust on modernisation, Rajapalayam Mills decided to replace all the old open end spinning machines with the most modern and fully automatic open end machines at a cost of Rs 45 crore. The installation of all the new open end machines was completed by the end of April 2021.
With the installation of these advanced machines, Rajapalayam Mills will focus on selling open end yarn in different value-added segments like knitting, denim etc. which are untapped by the company so far. In addition to this, the company has also invested in modernising other textile machinery and equipment. Rajapalayam Mills is presently having a mercerization machine with a capacity to produce 60 tonnes of mercerized yarn per month. Encouraged by the order flow for gassed, mercerized yarn, particularly for superfine counts, the company has proposed to triple the existing production capacity of this yarn from 60 tonnes to 180 tonnes per month.
The second line of the mercerization plant is slated to come into stream during the second of the current financial year 2021-22 while the third line will commence commercial production during January 2022. In order to take advantage of the current higher demand for yarn, the company has also proposed to expand its spinning capacity by adding 18,144 spindles. Meanwhile, retail sale of textile products across the globe is witnessing a robust trend. This demand along with lower levels of inventory with retailers will boost the demand for yarn manufactured in India for the current financial year 2021-22. In fact, India is becoming a strong alternative sourcing base to China for textile products.
Rajapalayam Mills has reshaped itself to acquire a better position by strengthening its product lines with more value-added customised yarn counts viz. mercerized yarn, melange yarn, core yarn, etc. to take full advantage of the current market trend. The company is continuously monitoring various process parameters and has also implemented various system controls to deliver consistent quality of yarn and fabric to the end customers. Rajapalayam Mills has also strengthened the product lines with more automation like fully automatic contamination removal system at the blow room stage, 100% ring spindle monitoring system, installation of link coners, etc. which has resulted in the overall improvement of efficiency of the mill.