The company currently operates 54,816 spindles and a high temperature-high pressure fibre dyeing plant
Reliance Chemotex, a leading synthetic yarn manufacturer, has clocked total revenue of Rs 368.36 crore for the year 2021-22, reflecting growth of 42 per cent YoY. Export revenue stood at Rs 247.90 crore, indicating growth of 73 per cent YoY. This has been possible due to its three-pronged strategy: a continued focus on technical textiles, further improving its already versatile, value-added product mix and strategic cost reduction. Established in 1977, it manufactures synthetic and blended yarn. The company currently operates 54,816 spindles and a high temperature-high pressure fibre dyeing plant.
It has been exporting yarn since 1987 and has a loyal customer base around the world. Its competitive advantage lies in its versatile product range and commitment to quality. The company manufactures 100 per cent polyester, 100 per cent viscose, 100 per cent acrylic, 100 per cent bamboo viscose as well as polyester, viscose and acrylic blended yarns which are used for knitting, weaving, upholstery, and carpet, medical and other industrial end-uses. Commenting on the results, Sanjiv Shroff, Managing Director, Reliance Chemotex Industries, said: “Our performance in the fourth quarter of this fiscal has been strong.”
“This has also been the case with the performance for the entire financial year under review. We have delivered robust results despite the escalating geo-political tensions in East Europe, a sharp increase in raw material and commodity prices, persistent issues with container availability, higher inflation and mounting interest rates. Our ongoing expansion and modernisation project, which was delayed by the pandemic, has been completed. We are now planning to undertake another expansion project with a total project cost of approximately Rs 100 crore,” he added.
“This project will expand our capacity by approximately 12,480 spindles, focus on the modernisation and expansion of our dyeing facilities and add machinery to help debottleneck certain production processes. This expansion will allow us to take further advantage of economies of scale, thereby reducing operating costs, expand our product offerings and improve profitability,” Shroff elaborated. Meanwhile, the company remains committed to expanding its solar power capacity.
“We have enhanced our solar power capacity to 3.5 MW and will be strategically scaling it up to 5 MW. This will reduce the company’s carbon footprint and lead to significant cost savings while also insulating us to a certain extent from fluctuations in the industrial power tariff rates. Given the company’s product-centric approach, versatile and value-added product mix, long-standing customer relationships and robust balance-sheet, we are confident of continuing our growth journey,” Shroff added. The company is guided by its consumer-centric marketing ideology and an unconditionally strong value system.