Sutlej to invest in value-added niche yarn

“The company always looks for value-added niche yarn, and this is the reason there is sustainability in profitability for the last five years,” Dilip Ghorawat, director & CFO of Sutlej Textiles told Fibre2Fashion.com. “The company’s export forms about 26 per cent of its revenue at present, in spite of a challenging global market. This signifies the importance of value-added dyed yarns.”

An investment of approximately Rs 90 crore has already been made in fiscal 2016 for upgrading technology and de-bottlenecking to develop new varieties of yarn in the coming years. It plans to invest Rs 10 crore in R&D for the development of its melange yarn centre.

Further, Rs 270 crore worth expansion will be made to increase the capacities of its existing value-added products – dyed yarns, cotton blended yarns and cotton melange yarns. The company will also be introducing some club yarns.

Rs 88 crore worth investment will also be made for the expansion of its home textiles category, which contributes around five per cent to the total revenue.

These yarns are expected to help in further improving its profitability. (MCJ)

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Fibre2Fashion News Desk - India