Suryalakshmi Cotton, India’s leading integrated yarn-to-garment manufacturing company, has announced the successful commissioning of its fourth state-of-the-art plant at Amravati in Maharashtra. With a total investment of Rs. 131 crores, the plant has commenced operation with the world’s most advanced and energy-efficient technology. The plant, with fully automated, state-of-the-art, imported spinning technology, is in line with the company’s strategy to produce value-added and premium fancy yarns.
With the addition of 26,000 spindles to its existing capacity of 61,000, the total spindle capacity at Suryalakshmi Cotton goes up to 87,000 spindles.
Commenting on the company’s latest milestone, Mr. Paritosh Agarwal, Managing Director, said: “The plant is a strategic landmark in our company’s vision of building world-class facilities in line with the ever-changing global fashion trends. Set up within stipulated timelines with no cost overruns, it proves our superior execution and process skills. With commencement of operation at the new plant, we will significantly cut down our dependence on third-party vendors for procuring yarn enabling better quality control and increased cost efficiencies.
He added: “With fancy yarns being a premium product and high margin business, we anticipate annual revenues of Rs. 150 crores plus from this plant alone. Most importantly, the in-house unit expands our scope to invest in R&D, enabling us to be in sync with the latest trends in the world of denim and to cater to international and domestic fashion demands more effectively. The high value yarns produced in this plant would be used for captive consumption in our denim division.
The plant would also utilize power from our 25 MW captive power plant, further adding to the company’s bottom line”.
Taking inspiration from Prime Minister Narendra Modi’s mission of ‘Made in India, Sold to the World’, Suryalakshmi Cotton hopes to produce international quality fancy yarns and sell both in the domestic and global markets.
Located in Amravati, which is the cotton belt of Maharashtra, the unit has abundant access to high quality raw material and labor. Further, it is fully compliant to leverage the interest subsidy benefits provided by the Central and State Governments.
The plant would provide direct employment to around 250 people and indirect employment to many more. It will utilize power from the 25 MW captive thermal power plant at Ramtek and thus ensure substantial lowering of power costs. On its part, the Ramtek power plant would increase production of electricity to cater to the needs of the Amravati unit.
Suryalakshmi Cotton is a leading producer of denim fabric in the country with an annual capacity of 40 million metres and well positioned as an Original Denim Manufacturer (ODM) to both international and domestic markets. This step is in continuation of the company’s strategic endeavor to have presence across all the three value chains of clothing yarn, denim fabric and garments. The plant will help the company in working out a robust strategy to intertwine the latest fashion trends across the three divisions.