Sutlej Textiles and Industries Ltd. (STIL) keeps expanding its presence in the global home textile market. The company has acquired the Design Sales & Distribution (DS&D) business and brand of American Silk Mills (ASM) LLC based at Plains, Pennsylvania. The acquisition adds strength of this leading American boutique designer and distributor of residential and contract furnishing textiles to Sutlej’s home textiles portfolio.
ASM will continue to design, develop and market its products under the brand name of American Silk Mills, thus furthering its legacy as a leader in this field for over 120 years.
Founded in 1896, American Silk Mills is still among the oldest and most established American textile brands by designing, weaving and distributing innovative textiles for the residential, contract, transportation and specialty markets. These products include innovative indoor/outdoor performance fabrics, fine jacquard textiles, multiple grades and styles of velvets, quality silks, and Sensuede, an eco-friendly synthetic suede noted for its durability, cleanability and long-lasting comfort.
ASM offers strategic fit on its strength of original designs based on American sensibilities, innate understanding of customer markets and a unique product portfolio that includes dobby, jacquards, velvets and suedes using a variety of fibers like rayon, linen, cotton, polyester, silk and acrylic.
Mr. S.K. Khandelia, STIL President, said: “American Silk Mills offers great synergy to access the American home textiles market using a sound platform of design & development combined with Sutlej’s scale and economics of production in India”.
“We are excited to partner with Sutlej Textiles,” said Cynthia Douthit, President of American Silk. “Increased investments in our infrastructure, inventory positions, technology and creative capital will position us to continue as a design leader, allow us to service our customers more efficiently and create and source enduringly beautiful textiles.”
STIL has units located in Rajasthan, Jammu & Kashmir, Himachal Pradesh and Gujarat, with total spinning capacities of 416,616 spindles at the close of 2016-17. Nearly 57 per cent of the company’s spindleage was less than 10 years old as on March 31, 2017, indicating high capability and efficiency.
Daily production amounts to 260 tons of dyed synthetic and blended yarns, cotton mélange and cotton blended mélange and dyed yarns, as well as yarn from speciality fibres (Modal, Tencel, bamboo, coolmax, fancy yarns like siro spun, siro compact, lycra twisted, core spun, double core yarn, etc.) in single ply, double ply and multi-fold.
Home textiles
In 2006, Sutlej Industries extended its portfolio from specialised yarn manufacture to home textiles. This business accounted for a larger share of the customer’s wallet. Going forward, it would mean least dependence on yarns while enhancing profitability. The company also invested in cutting-edge equipment, state-of-the-art German software, full-fledged testing laboratory, focused product range (upholstery and curtains) and contemporary designs (derived through collaborative working with reputed European studios).
The company has a well-equipped and state-of-the-art design and development center with the advanced hardware and designing software facilities for development of new designs for home textile products and furnishing fabrics. New furnishing fabric designs are being developed on a regular basis with different basic material, colours, weaves, textures, design pattern, shades, etc., as per the latest trends and requirements of the customers.
Expansion projects
On the brownfield project in Rajasthan, Sutlej has commenced commercial production of 35,280 spindles at a project cost of Rs. 270 crores. The company has also commenced commercial production of 17 circular knitting machines. These are dedicated capacity focused towards producing value-added cotton and cotton-blended dyed and Mélange yarn.
Sutlej is also expanding capacity of speciality synthetic yarn at its Himachal plant. It is adding 28,800 spindles at an estimated investment of Rs. 215 crores and the project is likely to have commercial production in FY20. The incremental capacity would be dedicated towards manufacturing 100% polyester industrial yarn and other grey blended specialty synthetic yarn.
Apart from creating fresh capacity, Sutlej has also invested around Rs. 31 crores in the current year towards modernisation, technology upgradation and debottlenecking, etc. This will result in further improvement in efficiency and sustaining plant utilization. The company intends to deploy a further amount of Rs. 49 crores during FY18 towards technology upgradation, and debottlenecking, etc.