Suryalakshmi to expand, add 26,000 spindles.

Suryalakshmi Cotton Mills, which has interests in yarn, denim and garments, is setting up a spinning unit with a capacity of 26,000 spindles near Nagpur. This will add to the already installed capacity of 61,008 spindles. The commercial operational date (COD) for the unit will be in October this year, according to its managing director Paritosh K Agarwal.

The unit coming up near Nagpur will manufacture value added and fancy yarns such as ring, lycra, slub and compact. The Rs. 131 crore capacity expansion is funded by long-term loans of Rs. 95 crore and the remainder through equity and internal accruals, he said.

Yarn accounts for about 42.5 per cent of the revenues, denim for more than 50 per cent and garments about seven per cent of the revenues. For the year 2013-14, its net turnover was Rs. 701.85 crore, down from Rs. 705.44 crore in the previous year. Some of the demand for the yarn for making denim was being met from outside purchases. The company has 40 million metre annual installed capacity for denim in Maharashtra. It has a capacity to make 4,000 garments per day and set a target of Rs. 1,000 crore turnover in three years.

'The company aims to increase the sales of fabric both in domestic and overseas markets. It moved up the value chain to produce more high-margin products like stretch fabric and coated denim. The effort is to reduce the sales cycle and increase the offerings to the clients,' said Agarwal.

It has a network of associates for the US market and has opened a market consultancy for Europe. Suryalakshmi counts Levis, Wrangler, Polo RL, DKNY, JC Penney, Walmart, Jones, UFO, Perry Ellis, Next, Marks and Spencers, C&A, Zara, George, Burtons and others as its clients across segments. It is partnering with Aditya Birla Nuvo, Landmark Group and others for sustainable business.


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