Sutlej has commenced work on the greenfield project, setting up of a green fibre project to manufacture polyester staple fibre (PSF) by recycling of pet bottles, proposed to be set up at Baddi (HP). The new project to manufacture raw white & black recycled fibre will have a capacity of 120 MT/day. The total project cost is Rs. 189 crores, funded by a mix of internal accruals and debt. Commercial production is expected to start by the first quarter of 2020-21. The new plan is expected to fulfill 75% of the captive requirement of key raw material PSF.
In the first 9 months of the current financial year, Sutlej has clocked a revenue of Rs. 1,972 crores, an increase of 5% over the previous year.
Commenting on the performance, Mr. C.S. Nopany, Executive Chairman, Sutlej Textiles and Industries Ltd. (STIL), said: “Q3FY19 has witnessed unprecedented fluctuations in rates of crude oil, polyester staple fibre, a derivative of crude oil, one of our major raw-materials, exchange rates, etc., creating uncertainty in the market place and disrupting demand in domestic as well as in export markets and putting severe pressure on realization rates and margins in synthetic yarns. However, because of our robust business model having varied product mix and value-added yarns in our product portfolio, we could counter these challenges to a large extent. I am hopeful that once stability returns and demand normalizes, Sutlej should be able to deliver a better performance.”
Modernisation
Sutlej is regularly investing in technology upgradation and plant modernization. The company invested around Rs. 28 crores in the current year towards technology upgradation, debottlenecking, etc. This is expected to further improve efficiency and sustaining plant utilization. Sutlej plans to invest a further amount of Rs. 30 crores towards technology upgradation and debottlenecking.
STIL, an ISO 9001:2015 certified company, is one of India’s largest spun dyed yarn manufacturers. Under the leadership of Mr. C.S. Nopany, Executive Chairman, a Chartered Accountant and Master of Science in Industrial Administration from Carnegie Mellon University, the company has focused on value-added yarns and home textiles. Over the years, the company has also successfully carved out a niche for itself and is holding leadership position in the dyed yarn and cotton mélange yarn segment.
The total spinning capacity of the company presently stands at 420,840 spindles, out of which 35% is dedicated to Melange Yarn and 65% to various blends. The company caters to the requirement of marquee clients like Page Industries, Siyaram, Raymond, Donear, etc.
Home textiles
Home textile is an emerging business for Sutlej. The company had its successful participation at Heimtextil at Frankfurt recently. The main focus is on curtains, upholstery and made-ups.
The company acquisition of American Silk Mills (ASM) has given it an edge in latest technology in design & manufacturing. Sutlej’s state-of-art manufacturing facility in Gujarat has a capacity of 9.6 million metres per annum, with 126 dobby & jacquard looms, including 36 looms with double width.
Looking into the future, Sutlej is focused on strengthening capabilities in home textiles. The company is investing in wider width printing machines and digital printing capabilities, steaming and washing machines, solutions for fancy yarn and embroidery.