Sutlej Textiles’ total income for Q1 of fiscal 2017-18 stood at Rs 658.73 crores. EBITDA grew to Rs 76.28 crores. PAT was at Rs 23.58 crores and EPS was Rs 14.39. Now, Sutlej, one of India’s largest spun dyed yarn manufacturers, is undertaking brownfield capacity expansion of 28,800 spindles at its specialty synthetic yarn facility in Himachal Pradesh. The estimated project cost is Rs 215 crores and the project is likely to start commercial production from the fourth quarter of fiscal 2019. The incremental capacity would be dedicated towards manufacturing of 100 per cent polyester industrial yarn and other grey blended specialty synthetic yarn.
Another brownfield project, at Rajasthan, has 17 circular knitting machines and will have dedicated capacity focused toward producing value added cotton and cotton blended dyed and mélange yarn.
The company has invested in technology upgradation and debottlenecking. This will result in further improvement of efficiency and sustaining plant utilisation.
Sutlej has been able to achieve top line growth as new capacities have started commercial production, both in spinning and home textiles. Operations are expected to stabilise during the second quarter of fiscal year ’18. Value added products will be the profit driver in the future.
