Sumeet Industries Ltd. has reported a satisfactory performance for 2011-12. The company produced 68408.420 tons of pet chips / polyester / polypropylene multifilament yarn and despatched 67630.95 tons. Income from operation has increased from Rs. 820.40 crores to Rs. 824.48 crores. The company has successfully commissioned polyester filament yarn (POY & FDY), a direct spinning unit, through MEG and PTA.
The company has been exploring all the export possibilities. During the year it exported pet chips and polyester chips products worth Rs. 908.63 lakhs. At present it is exporting pet chips and polyester yarns to South Africa, Bangladesh, Egypt, Saudi Arabia, China, Peru, Argentina, Portugal, Indonesia, Iran, the US and Singapore. Exploring export markets has been a key area of focus for the company which expects reasonable growth in overall export sales in the current year.
Research & Development
The company is laying great emphasis on innovation in product and process technology and operational efficiencies. For its recently commissioned continuous polymerization plant and also for POY and FDY, it has set up a separate fully equipped well-designed lab for testing of MEG and PTA and developing better quality of pet chips and yarns with different deniers and filaments. It has institutionalized a multiple-stage quality control system at the material handling, operations and finished goods stage. The enhanced quality so developed has been performing well in the domestic as well as international markets.
Successful efforts are being made to re-engineer the products & process to reduce cost and optimize material consumption. The product lines of the plant are designed to change product with minimum changeover losses and thus meet customer requirement even for small quantities.
Business overview
Recently Sumeet Industries successfully commissioned its expansion in spinning capacity of POY and FDY. The project has been imported from Barmag, Germany, having the latest high-speed winder equipped with state-of-art technology of auto doffer system and 8.6 MW gas-based genset captive power pant at a total cost of Rs. 150 crores.
The company has established its presence in the entire polyester yarns value chain. The business outlook is very impressive and positive. Value addition and operating margin in polyester FDY and POY is much higher than polyester chips.
By implementing this project, the company expects to increase turnover by more than Rs. 300 crores and operating profit by Rs. 25 crores. As such, this project will improve operating margin substantially.
The company is also gaining a substantial market share and enjoying significant competitive advantages over other players, with economies of scale, advanced technologies, superior quality of products and better client relationship.
As a business strategy, Sumeet Industries believes in specialization in its core business segments to become a vertically integrated player in the polyester industry to remain cost-efficient and competitive in the market with its peer group. It offers a strong technology-based value proposition to customers. Over the years, it has developed capabilities to customize and improve the product designs by absorbing, adapting and improving the acquired technology from both national and international suppliers.
This, coupled with the company’s strategy of producing varied denier and filament of yarns, will enable it to supply different yarn qualities to different categories of manufacturers and to grow in a competitive market.