Trident Group investing in technology to gain global leadership in home textiles

Started as an agro-based manufacturer in 1990 in Punjab, the Trident Group has diversified and expanded manifold, giving way to businesses based on sustainable growth. Under the dynamic leadership of Mr. Rajinder Gupta, its Chairman, the Trident Group continues to grow embracing new challenges, expanding boundaries and creating new opportunities.

Trident-RajinderGupta

Trident Ltd., the flagship company of the group, is one among the top five global terry towel giants in the world. Trident is also one of the world’s largest agro-based paper manufacturers and one of the largest yarn producers in India.

Trident derives its strengths from its integrated business model, large-scale operations, continuous expansion, business excellence, global presence and more than 25 years of lineage. In 2012-13, the company introduced various new and value-added products in paper and textile divisions for its existing and new customers.

With best-in-class technology, proven track record and an employee strength of 10,000, Trident has a strong clientele comprising MNCs in 70 countries across the globe, including nine of the top 10 retailers in the US, six leading retailers in Europe and five of the top seven in Australia and New Zealand (ANZ). The company declared a consolidated turnover of Rs. 33,577 million during 2013, of which 48 per cent was from exports amounting to Rs. 16,082 million.

Mr. Rajinder Gupta says: “With our emphasis on quality and innovation combined with improving productivity through various initiatives, viz., Total Productivity Management (TPM), 5S Kaizen and Kobatsu Kaizen, we have further strengthened our engagement proposition to our customers offering them advantages of economies of scale and consistently high quality products at competitive pricing”.

Trident-AbhishekGupta

Yarn business

In the yarn segment, the company has an installed capacity of 365,904 spindles and 3,584 rotors, capable of manufacturing 8,400 tonnes of cotton and blended yarn per month. It also has yarn processing capacities of 6,825 TPA. The yarn products are marketed under the Trident brand. The yarn segment contributes 46 per cent of the company’s aggregate revenues. The segment has its presence in 19 countries and its exports contributed 27 per cent to the total yarn revenues of Rs. 16,837 million during 2013, which is an increase of 44 per cent from Rs. 11,685 million in 2012.

As part of the company’s Rs. 16,668 million expansion plan, 1.76 lakh spindles, producing 38,802 TPA yarn, will be added to its manufacturing capacities, thereby increasing the yarn capacity to 5.42 lakh spindles, 3,584 rotors capable of manufacturing 12,000 tonnes of cotton and blended yarn per month. Thanks to its full utilization of the plant capacity in the previous year, the yarn division production clocked 84,490 MT in 2013, a 41.7 per cent increase over 59,611 MT produced in 2012.

Trident produces a wide range of yarns like cotton yarn, blended yarn, special open-ended and other specialized yarns, organic cotton as well as spun yarn. It has just launched core filament yarn and contamination free yarn in line with its strategy to increase value-added products. The company has installed state-of-the-art machinery from LMW, Rieter, Murata, Zinser and Savio, besides LMW-India.

The company’s products enjoy good overseas demand and have entered new markets like Denmark, Turkey, the UAE, Bahrain, Tunisia, Algeria, Ivory Coast, Vietnam, Pakistan, Morocco, Indonesia, Nepal, Netherlands, Slovenia and Mexico with its niche products that are likely to deliver higher margins as well.

Trident-pic-6Home textiles business

The company is amongst the world’s largest terry towel manufacturers and draws economies of scale from large capacities. In its home textiles segment, it has installed capacity of 388 looms of different specifications, namely, Jacquards (54), Air Jet Dobby (296) and Rapier Dobby (38). Trident’s capacities are capable of producing 43,200 tonnes of towels per annum. This also translates into 14.5 million pieces of towels and 90,000 bathrobes a month.

The company exports contribute to 85 per cent of the segment’s total revenue of Rs. 12,694 million. During 2013, the company’s home textiles segment clocked a total revenue and PBIT of Rs. 12,694 million and Rs. 1,195 million respectively. The home textile products are sold under various established brands like Home Essential, Classic, Kids and Mom, Floral, Colors and Indulgence. Its integrated business model brings in natural synergies in home textile segment’s business operations. Around 20 per cent of the yarn produced is utilized by its home textile segment.

As a part of its expansion plans, the company proposes to increase its current capacity to 500 looms. Post expansion, it will be able to manufacture 3.6 million metres of sheeting per month. Trident is also planning to venture into bed sheets and pillow covers products as part of its future diversification plan.

Trident has tie-ups with some of the global-best technology partners and system providers to bring best-in-class, cost-effective and fast produced products. The company is associated with some of the world’s well-known retail companies as its customers like Ralph & Lauren, Calvin Klien, Target, IKEA, Wal Mart, Bed, Bath and Beyond and J C Penny, to name a few. Also it has plans to penetrate into new geographies like Japan, Korea, Europe and the Middle East.

Trident has captive power capacity of 50 MW produced through three mega turbines and two power boilers. This makes it self-sufficient for all its businesses. In 2013 it produced 3.20 lakh MWH units of energy for its captive consumption. It applies the multi fuel-boiler technology for use of multiple fuels, including waste materials like wheat-straw, pulp, etc.

Trident-pic-9

Financial performance

Trident’s net sales for 2012-13 increased to Rs. 33,352.6 million from Rs. 27,322.8 million in the previous year, with a growth of 22 per cent. The operating profit EBIDTA for the year was Rs. 5,778.1 million (Rs. 3,202.4 million), an 80 per cent increase. Its net profit was Rs. 493.3 million as against net loss of Rs. 437.4 million. Export sales accounted for 48 per cent of net sales. During the year, export sales increased by 12 per cent from Rs. 14,413.8 million in 2012 to Rs. 16,081.7 million in the current year.

In order to attain world-class quality the company has installed Texparts new technology ZUW Spindles (with centrifugal clutch) by replacing the old version of knurled spindles. It has also installed hairiness module in winding machines to arrest the bobbins of high hairiness in compact and off centering in CSY yarn and added an automatic folding and packing machine in its home textiles section.

Awards

For its excellence in performance, the Triden Group was awarded the Silver Trophy “Top Exporters – Terry Towel” in the category of ‘Made-ups’ and the Bronze Trophy for “Highest Global Exports” by the Cotton Textile Export Promotion Council (Texprocil).

The company has been recognised as the “Principal Partner – Bath” for 2012-13 by Sears Holdings Corporation for partnering the development of successful bath shop programs. It was also conferred the prestigious ‘CITI Birla Award for Human Resource Management in Textile Mills’.