In order to cater to its ever-increasing customer base, Vardhman is expanding its existing spinning capacities with installation of additional spindles at Budhni and Satlapur. The projects are expected to commence commercial production in 2013-14. An additional 220 looms will also be in operation by December 2013. Apart from these expansions, the company continues to modernize its capacities and go in for line balancing as and when required. It also continues to lay emphasis on process improvements, diversification of products, rationalization of costs, improving efficiencies and building a strong customer base.
In 2012-13, Vardhman registered a turnover of Rs. 4,159.71 crores as compared to Rs. 3,918 crores, showing an increase of 6.17 per cent over the previous year. Exports amounted to Rs. 1,599.59 crores. Production of yarn increased from 138,046 MT to 148,003 MT during the year. Yarn sales revenue moved up from Rs. 2,421.77 crores to Rs. 2,523.46 crores, an increase of 4.20 per cent.
Production of fabric (grey and processed) grew from 187.12 million metres to 219 million metres, showing an increase of 17.04 per cent over the previous year. Sales revenue from fabric (grey and processed) also increased from Rs. 1,199.81 crores to Rs. 1,366.96 crores, showing an increase of 13.93 per cent.
VMT Spinning Company Ltd. (VMT), a subsidiary of the company, which is a joint venture with Marubeni Corporation, Marubeni Hong Kong and South China Ltd. and Toho Tenax Ltd. of Japan, performed better compared to the previous year. Revenue from VMT operations moved up to Rs. 147.45 crores from Rs. 144.51 crores the previous year.
Vardhman Acrylics Ltd. (VAL), another subsidiary of the company which is engaged in the business of manufacturing of acrylic fibre, recorded revenue from operations of Rs. 436.49 crores as against Rs. 390.14 crores in the corresponding period last year.
Vardhman Yarns & Threads Ltd. (VYTL), a joint venture with American & Efird Inc. (A&E), is engaged in the business of threads manufacturing and distribution. VYTL is a joint venture partnership of 51:49 with A&E, which is the second largest player in threads manufacturing and distribution across the world. During the year under review, revenue from operations was Rs. 540.54 crores as against Rs. 464.69 crores the previous year, registering an increase of 16.32 per cent.
Vardhman Nisshinbo Garments Company Ltd. (VNGL), which is a joint venture partnership of 51:49 with Nisshinbo Textiles Inc. of Japan for manufacturing world class men’s shirts, clocked revenue from operations of Rs. 17.66 crores as compared to Rs. 7.43 crores the previous year.