Suryalakshmi Cotton commissions 4th plant at Amravati
IndiaÂ´s leading denim producer, Suryalakshmi Cotton has successfully commissioned its 4th state-of-the-art plant in Amravati, Maharashtra. Built at a cost of Rs 131 crore, the fully automated and ultra-modern unit will manufacture high-grade, value-added fancy yarns such as Ring Slub, Stretch, Elli Twist and Compact.
IndiaÂ´s leading denim producer, Suryalakshmi Cotton has successfully commissioned its 4th state-of-the-art plant in Amravati, Maharashtra. Built at a cost of Rs 131 crore, the fully automated and ultra-modern unit will manufacture high-grade, value-added fancy yarns such as Ring Slub, Stretch, Elli Twist and Compact. About 40 per cent of the yarns manufactured in the plant will be consumed by the companyÂ´s captive denim fabric unit at Nagpur, Maharashtra and the balance will be sold to global and domestic players. The state-of-the-art plant deploys world-class technologies and will help Suryalakshmi Cotton to continue its market leadership through premium products at premium prices.
With a total investment of Rs 131 crore, the plant has commenced operations with the worldÂ´s most advanced and energy efficient technology. The plant includes fully automated, state-of-the art, imported spinning technology and is in line with the companyÂ´s strategy to produce value-added and premium fancy yarns. With the addition of 26,000 spindles to its existing capacity of 61,000, the total spindle capacity at Suryalakshmi Cotton goes up to 87,000 spindles. Trial runs at the plant have been successfully completed and the plant entered commercial production of yarns from September 25, 2015.
Commenting on the companyÂ´s latest milestone, Paritosh Agarwal, Managing Director, said: Â´The plant is a strategic landmark in our companyÂ´s vision of building world-class facilities in line with ever-changing global fashion trends. Set up within stipulated timelines with no cost overruns, it proves our superior execution and process skills. With commencement of operations at the new plant, we will significantly cut down our dependence on third-party vendors for procuring yarn enabling better quality control and increased cost efficiencies.Â´
Â´With fancy yarns being a premium product and high margin business, we anticipate annual revenues of Rs150 crore plus from this plant alone. Most importantly, the in-house unit expands our scope to invest in R&D enabling us to be in sync with the latest trends in the world of denim and to cater to international and domestic fashion demands more effectively. The high value yarns produced in this plant would be used for captive consumption in our denim division. Also, the plant will utilise power from our 25 MW captive power plant, further adding to the companyÂ´s bottom lineÂ´ he added.
Taking inspiration from the Prime Minister, Narendra ModiÂ´s call for Â´Made in India, Sold to the WorldÂ´, Suryalakshmi Cotton hopes to produce international quality fancy yarns and sell it to buyers across the globe and in India.
Located in Amravati, which is the cotton belt of Maharashtra, the unit has abundant access to high quality raw material and labour. Further, it is fully compliant to leverage the interest subsidy benefits provided by the Central and State Governments. The plant would provide direct employment to around 250 people and indirect employment to many more. The plant will utilise power from the companyÂ´s 25MW captive thermal power plant at Ramtek and thus enable substantial lowering of power costs. On its part, the Ramtek power plant would increase its production of electricity to cater to the needs of the Amravati unit.