Trident has charted out expansion plans to further consolidate its global leadership. The company has already emerged one of the top terry towel and wheat straw-based paper manufacturers in the world. With an installed capacity of 3.66 lakh spindles, 3,584 rotors and 388 looms, the company manufactures 8,400 tons of cotton yarn/month and 14.5 million pieces of towel/month. Trident also has capacity to manufacture 15,000 tons of paper/month and has 50 MW of captive power.
The Board, at its meeting held on May 15, approved an investment of INR 1,667 crores on textile expansion and diversification projects to register sustained growth in the future. The proposed investment would enable the company to add additional capacity of cotton yarn and value-added yarn, and to diversify into the sheeting segment of home textiles at Budni in Madhya Pradesh.
The expansion envisages installation of 1.76 lakh additional spindles and other balancing equipment to manufacture around 38,802 TPA of additional cotton yarn of higher count and value-added varieties which will be implemented in a phased manner and will be fully operational by September 2015. Post expansion, the yarn production capacity will go up to 5.42 lakh spindles.
To further diversify its product portfolio, the company plans to venture into manufacturing bedsheets and pillow covers. With an installed capacity of 500 looms, it will manufacture 3.6 million metres of sheeting/month which would be exported to countries like Japan, Korea, Europe and the Middle East.
Trident plans to commence work on these projects by September after its financial closure and expects to create additional employment to more than 9,000 families in the region. The investment would be funded through a combination of debt, equity and internal accruals.
The expansion would take advantage of the central location with convenient access to the prime business nodes and proximity to the ports which would provide logistical benefit to the company both for import and export. The proposed expansion would provide a base to increase its market reach in southern and eastern parts of the country both for raw material procurement and sales of finished goods to utilize market conditions more efficiently and well in time.
Keeping pace with the technology, the company has partnered with global best technology suppliers like Karl Mayer, Toyota, Staubli, Benninger, Unitech, Zimmer, Rieter and Loptex, for its expansion and diversification plans.
Commenting on the expansion plan, Mr. Rajinder Gupta, Chairman, Trident Group, said: “With this expansion programme, we plan to expand our markets to the countries which have been, till now, strong customer bases of competing nations, viz., China, Turkey and Pakistan. We also intend to improve our product offering as well as product pricing by selling towels and bed sheets together, thereby harnessing customers who could not be tapped erstwhile, due to non-availability of complete range of home textile products.”
After the proposed expansions under Trident Ltd. and Trident Corporation Ltd., the production capacity of the Trident Group would rise to 688 looms manufacturing 30 million pieces of towels/month, 500 looms manufacturing 3.6 million metres of sheeting/month, 5.42 lakh spindles and 3,564 rotors manufacturing 12,000 tonnes of cotton & blended yarns/month and 110 MW of captive power. This will make Trident one of the largest integrated home textile manufacturing facilities in the world. Apart from being a renowned name in the home textile segment, the company is also the leading wheat straw-based paper manufacturer with a monthly production capacity of 15,000 tons of eco-friendly paper.
Trident is associated with global retail brands across the globe, including Ralph & Lauren, Calvin Klien, JC Penney, IKEA, Target, Wal-Mart, Macy’s, Kohl’s, Sears, Sam’s Club, Burlington, etc. It has also frequently received accolades from its patrons in recognition of its delivering high quality standards and for its customer-centric approach. With a compounded annual growth rate (CAGR) of more than 30 per cent, Trident has established itself as one of the fastest growing groups in India.
In 2012-13, Trident clocked a turnover of Rs. 3356.8 crores, an increase of 22 per cent over the previous year. Commenting on the results, Mr. Arun Goyal, CFO of Trident Ltd., said: “The company has been able to achieve higher revenues mainly due to better utilization of capacities. The result further reflects growth in profits due to increased production on account of debottlenecking & modernization, higher percentage towards manufacturing of value-added yarn, favorable foreign exchange movement and increase in domestic sales realizations.”
In the last quarter of 2012-13, revenues of the Yarn Division registered an impressive growth of 42 per cent to Rs. 460.9 crores as compared to Rs. 324.3 crores in the corresponding quarter of the previous year. PBIT was higher by 77 per cent at Rs. 44.5 crores (Rs. 25.2 crores). Revenues from terry towels were flat at Rs. 319.9 crores. PBIT grew by 56.5 per cent to Rs. 51.8 crores vis-à-vis Rs. 33.1 crores in Q4 FY12.
Awards & accolades
During FY13, the company received the following Awards and recognitions:
• Recognized as “Principal Partner – Bath” for 2012-13 by Sears Holdings Corporation for partnering development of successful Bath Shop programs
• Special Commendation for the Golden Peacock Environment Management Award-2012 from the World Environment Foundation
• CITI Birla Award for Human Resource Management in Textile Mills during 2011-12 by the CITI-Birla Economic and Textile Research Foundation
• 1st Position in CONCOR EXIM Star Award in the category of “Exporter-Northern Region” and 2nd Position in the category of “Financial Performance–Northern Region” by Container Corporation of India Ltd.
• Silver trophy for “Top Exporters – Terry Towels” in the category of ‘Made-ups’ and the Bronze trophy for “Highest Global Exports” by the Cotton Textile Export Promotion Council (Texprocil).