Rajasthan-based manufacturer of cotton yarn, knitted fabrics and woven fabrics, Nitin Spinners plans to double its woven fabric capacity with an investment of Rs 100 crore over the next two years. The expansion will be executed at the company’s existing facility in Chittorgarh district, Rajasthan.
Dinesh Nolkha, Chairman and Managing Director, says, the expansion is being driven by high utilization rates by the firm. To alleviate these capacity constraints, the company aims to diversify its product portfolio, and add fashion fabrics. Its newly added capacity will help generate an additional Rs 1,000 crore in revenue.
Nolkha anticipates cotton and yarn prices will remain stable as over the past year cotton prices have declined by 15 per cent and yarn prices by almost 10 per cent.
Nitin Spinners experienced sluggish demand in 2023, particularly in cotton yarn exports. However, international demand is now gradually recovering, with European markets stabilizing and the US market showing signs of resurgence. The company has seen particularly strong demand for a variety of textile products in the US. The domestic market has remained stable, with recent large orders received by garment exporters from international brands further boosting domestic demand.
In Q3, FY25 spanning October-December 2024, Nitin Spinners reported revenue of Rs 838 crore, a profit margin of 13.9 per cent m and a profit after tax of Rs 44 crore.
