Interview with Dilip Ghorawat

Face2Face
Dilip Ghorawat
Dilip Ghorawat
Director & CFO
Sutlej Textiles
Sutlej Textiles

What value additions do you make to your yarns?

Sutlej Textiles is a one-stop shop for all kinds of spun yarn. The company is also the largest manufacturer of dyed yarn in the country. Besides, the company is the largest manufacturer of cotton mélange and cotton blended yarn. Our total capacity for dyed yarn is 340,000 spindles, and for cotton mélange is 106,000 spindles. This is a valued added product. The company has developed many types of yarn, which will improve its profitability in the long run.

What are the latest innovations from your stable?

The company has invested approximately Rs 90 crore in FY16 towards technology upgradation and de-bottlenecking. This will help the company to introduce a new variety of yarns in the coming years. The company always looks for value added niche yarn, and this is the reason there is sustainability in the profitability of the company for the last five years. The company is also having a thrust on exports. The company's exports forms about 26 per cent of its revenue at present, in spite of a challenging global market. This signifies the importance of the value added dyed yarns being manufactured by the company. We will be introducing some club yarns. Further, the company is doing an expansion of Rs 270 crore at Bhawanimandi, Kota for the manufacture of cotton blended and cotton mélange yarn. The capacity will go up from 106,000 spindles to 141,000 spindles, which the company hopes to commercialise by 2017. Further, the company is also into manufacture of home textiles, which contributes around 5 per cent of its total revenue. The company is doing an expansion of Rs 88 crore, ramping up the production from 2 million metres to 9.6 million metres. The company is exporting 25 per cent of its home textiles to the Middle-East, Mexico and will start the US in the next six months. The company has hired designers and is spending on the marketing team for further support to the textile sectors on the whole.

Which are your best markets – domestic and international?

Currently, out of the total exports of the company, 26 per cent comprises exports to around 55 countries. This includes European countries, the US, Turkey, Mexico, and Middle-East countries. This year, we have added Japan, and the remaining 75 per cent is sold within the country. The domestic market forms a majority of our clientele. Our major customers are corporate clients to whom we supply through the market in Ludhiana, Bhilwara, Mumbai, Ahmedabad, Delhi, Tirupur. Our customers are big industries like Page Industries, Raymond, Grasim, Siyaram, Donear, Shivalik Prints and other leading manufacturers of textiles.

What expansion plans lay ahead?

The company is implementing an expansion programme of Rs 270 crore project at Bhawanimandi to manufacture spindles of cotton mélange dyed yarns, which will commence operations in 2017. The home textiles' expansion from 2 million metres to 9.6 million metres at a cost of Rs 88 crore at Vapi, Gujarat will happen in phases. The production will commence in March 2017.

What is the budget allocated to R&D?

The company has modern, state-of-the-art quality testing equipment like Uster, etc. The company has spent around Rs 20-25 crore in R&D at all its plants. The company further plans to spend Rs 10 crore in R&D, developing mélange developmental centres. The company will always try to produce value added niche yarn at its laboratory, and then introduce it into the market. It will always try to facilitate the sustainability of its profitability going forward.
Published on: 21/06/2016

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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