Sutlej Textiles and Industries Ltd. has for the year ended March 31, 2016, achieved a turnover of Rs. 2,302 crores, which is an increase of 20 per cent year on year. Net profit for the year was Rs. 143 crores, an increase of 24 per cent over the previous year.
Mr. C.S. Nopany, Chairman, Sutlej Textiles and Industries Ltd., said: “The financial year 2016 has been a challenging one due to the global economic slowdown. Despite these challenging times, I am pleased that Sutlej, with its strategy of focusing on operational efficiency, organic and inorganic growth through capacity expansion both in spinning and home textiles, has reported increased revenues and profits during the year. In spite of challenging headwinds for the sector with margins under pressure, we continue to concentrate on enhancing our scale of operations which will ensure consistent performance, coupled with growth. Work on creating new capacities in Rajasthan Textile Mills for producing value-added products and expansion of home textiles is progressing as per schedule. Once completed, these will enable us to enhance our domestic as well as global foot-print.”
BTM acquisition
Discussions on acquisition of Birla Textile Mills (BTM) were successfully concluded on September 30 last on receiving statutory approvals. BTM, located at Baddi in Himachal Pradesh, has a capacity of 83,376 spindles and manufactures cotton, synthetic & blended yarn in grey & dyed form. STIL’s total spinning capacity has gone up to 377,688 spindles as on March 31, 2016. The company had spent around Rs. 20 crores on de-bottlenecking and value-additions at the BTM unit during the year.
Work on the project for adding 35,280 spindles at the Bhawani Mandi facility in Rajasthan has commenced. Civil work is progressing, and orders for key plant and machinery have been placed.
Home Textiles Division expansion is on track. Orders have been placed for 20 single-width looms and 20 Jacquard attachment, four electronic Chenille yarn machines and one multi-chamber stenter forming part of the expansion project. The project is to be completed in phases, with the first phase of 16 looms installed and commissioned in July 2015. Post completion, the annual capacity in its existing facility will increase to 9.6 million metres. The growing presence in the home textile segment will result in further strengthening the company’s end-to-end operations.
STIL was felicitated with the prestigious SRTEPC Gold Trophy for Best Export Performance for Exports of Fabrics to “Focus SAARC” countries for 2014-15 and the Silver Trophy for the Second Best Export Performance of Spun Yarn for the year by Mr. Santosh Kumar Gangwar, Minister of State for Textiles, at a glittering function held in Mumbai on January 23 last.
Sutlej Textiles and Industries, an ISO 9001:2008 certified company, is one of India’s largest spun-dyed yarn manufacturers. Under the leadership of Mr. Nopany, the company has focused on value-added yarns to build its significant presence across the value chain. Over the years, the company has also successfully carved out a niche for itself and emerged as a leading player in the dyed yarn segment. Its total spinning capacity, post the acquisition of Birla Textile Mills, stands at 377,688 spindles as on March 31, 2016.
STIL, with a strong global clientele, exports to nearly 60 countries. It has presence across major developed and emerging economies like Australia, Argentina, Bangladesh, Bahrain, Belgium, Brazil, Canada and China.
STIL has also been the recipient of numerous prestigious awards like the Niryat Shree – Gold Trophy Award for its export performance in spun yarn, the Gold Trophy from SRTEPC for best performance in export of fabrics to focused Latin American countries and the Silver Trophy from SRTEPC for the second best export performance in the spun yarn category.