Denim producer Suryalakshmi commissions fourth plant in Amravati

 
Paritosh Agarwal, managing director, Suryalakshmi Cotton, said, “The plant is a strategic landmark in our company’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.”
 
With fancy yarns being a premium product and high margin business, the company anticipates annual revenues of Rs 150 crore plus from this plant alone. Most importantly, the in-house unit expands Suryalakshmi Cotton’s scope to invest in R&D enabling it 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 its denim division.

 
The plant will utilise power from Suryalakshmi Cotton’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.
 
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.
 
Suryalakshmi Cotton is a leading producer of denim fabric in the country with a capacity of 40 million meters per annum and well positioned as an original denim manufacturer (ODM) to both international and domestic markets. This step is in continuation of the company’s strategic endeavour to create presence across all 3 value chains of clothing – yarn, denim fabric and garments. The plant will help the company in creating a robust strategy to intertwine latest fashion trends across the three divisions. This will also de-risk the company’s revenues and at the same time help in maintaining a focus on high-value high-margin businesses.