'EBIDTA very important to achieve sustainability of business' – Dinesh, Nitin Spinners

09 Nov '11

9 min read

He also gives due credit to one of his ex-employees and who is now no more – Mr Kumbhat, who was their main cotton purchaser as well as looked after the commercial operations.

Nitin Spinners is the brain child of Dinesh Nolkha and was incorporated in October 1992. After completing his CA exams, he expressed a desire to become an entrepreneur rather than work for someone else and turned his eyes on the textile sector.

Nitin Spinners was started at an initial investment of Rs 28.5 million with a capacity of 150 tons of yarn per month. In the initial phase Dinesh started with two open-end yarn spinning machines and was spinning coarse yarn below 10s count.

However, the Nolkha family took care to ensure that their product portfolio did not clash with that at the LNJ Bhilwara Group, since Mr RL Nolkha at that time, was still working for the group. Which is the main reason that, although Bhilwara is renowned as a hub for manmade fibre textiles, Nitin Spinners turned to cotton as their main source of raw material for spinning export quality yarn.

In 1995, he realized that the machines that were chosen in 1992 were not up to the mark, in terms of delivering quality yarn. At that point of time, denim fabrics shot in to prominence, with Arvind Ltd becoming a phenomenon in denim. Alongside other companies like Aarvee Denims, KG Denims and Blueblends too started their denim operations.

However, the desirable quality of yarn needed to produce the denim fabric was not available in the quantities needed by these denim mills. This sparked an idea in the mind of Dinesh. Despite entailing a heavy investment, he invested in the latest autocoro machines. Within a period of one year, the order book of Nitin Spinners was bulging with orders from denim producers.

Alongside in the next three years, Nitin Spinners kept on adding new open-end spinning capacity and it touched 700 tons per month in 1997. In 1998, Dinesh decided to foray into ring spinning, which was the time when, Dinesh persuaded his father to quit his job and join the family textile business full time.

In 2000, the younger sibling – Nitin joined the business and also the first of the 14,000 ring spindles began operations. In 2002, they set up a fabric knitting plan and also kept on increasing ring spindles capacity. They took full advantage of the Textile Up-gradation Fund (TUF) in the new century and also went public in 2006.

Nitin Spinners exports yarn to all the six continents and to around 45 countries around the world. It also counts the leading fabric mills in India as its customers. Average age of the machines at Nitin Spinners is just 6-7 years. The technology and machines at the plant instills confidence in the overseas buyers about the products rolled out by Nitin Spinners.

The yarn produced by the spinner meet the Oeko-Tex standard 100 parameters as well as the ISI standards. The company has also been certified by 'Organic Exchange'. Alongside it also has won awards from Texprocil for being the second highest knitted grey fabric exporter for two consecutive years and also bagged an award for energy conservation. The Rajasthan government conferred the biggest textile exporter award from the state on Nitin Spinners in 2009-10.

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