Sutlej Textiles and Industries board nods greenfield project for 89,184 spindles

The Board of Administrators of Sutlej Textiles and Industries Limited at its assembly held in the present day i.e. 09th Could, 2022, have thought of and authorised organising of a inexperienced discipline mission for 89,184 spindles comprising of Cotton Mélange Yarn and PC Gray Yarn together with Dye Home in Jammu & Kashmir at an estimated mission price of Rs914 crore which can be carried out round This fall FY 2025. The mission can be funded by way of inside accruals and debt.

The present capability of the Firm in yarn manufacturing is round 4.21 lakh spindles. The Firm operates at round 94 – 95% capability utilization.

The complete Indian Textile & Attire Business after witnessing a powerful restoration from the pandemic is now embarked upon a brand new trajectory of development. Textile & Attire (T&A) being one of many largest in world commerce and exports is successfully within the midst of a gradual shift away from single supply nation and the efforts focused at diversifying the availability chain.

Since India’s T&A price chain has underlying strengths within the type of nation being an enormous supply of uncooked supplies (India is likely one of the world’s largest producers of uncooked cotton), with presence throughout the worth chain and high quality of the merchandise, the aforesaid phenomenon is being thought of as an enormous alternative for the Indian Textile Business. Indian spinners and residential textile gamers are being thought of as the important thing beneficiary of this beneficial pattern.

The textile sector continues to witness sturdy demand. This constructive outlook is additional getting supported by a beneficial coverage within the type of Authorities’s initiatives to reinforce the convenience of doing enterprise, generate employment, create market entry, appropriate sector’s weaknesses like the shortage of scale, increase textile exports, formidable schemes like PLI scheme for MMF Phase, Mega Funding Textile Parks (MITRA) Scheme and Extension of RoSCT, RoDTEP and completely different FTAs already executed or deliberate to learn the complete textile worth chain.

Moreover robust enchancment in capability utilization, this has additionally spurred a sequence of aggressive capex plans throughout spinning, processing, made ups and garment manufacturing by main textile gamers.

With the 2nd largest spindle capability on the planet, the Indian spinners are seeing full utilization of their capacities and superior margins because the yarn enterprise stays robust. The unprecedented development and enchancment in profitability over the previous few quarters has been on account of China+1 coverage and US ban on Chinese language textile merchandise constructed from Xinjiang cotton. With enlargement in capacities, consolidation and export demand for Indian yarn nonetheless at fairly good ranges, the Indian spinning enterprise is witnessing robust development.

The Firm is just not current within the greige (gray) product phase. As a way to praise the dyed/melange product providing, the Firm must have gray product in its product basket. In view of accelerating demand of cotton/polyester blends throughout a number of classes of finish use, there may be market potential for gray blended yarns each in home and exports.

At round 2:50 PM, Sutlej Textiles and Industries was buying and selling at Rs73.35 apiece down by Rs1.35 or 1.81% on the BSE.