Century Textiles & Industries Ltd

Century Textiles & Industries Ltd

Century Textiles and Industries Limited is principally engaged in manufacturing of Textiles Pulp and Paper and Real estate. The Company is a multi-location multi-product organization with diversified interest from textile to real estate to pulp & paper. It is a paper producer offering writing and printing grades copier specialty grades tissue and packaging boards. Its ready-to-wear garments are marketed under Cottons by brand 'Century'. The Company's New Textile Mill Birla Century in Gujarat manufactures textile fabrics. In the real estate business the Company operates under the brand 'Birla Estates'. It has land parcels in prime locations in Worli 30 acres Kalyan 132 acres and Pune 45 acres where the Company is rolling out its development plans for premium and mid income housing and commercial use. In addition to owned land Birla Estates has already signed a MoU to develop 1 million sq. ft. of residential project in Gurgaon. Century Textiles and Industries Limited was incorporated in the year 1897 as a Public Limited Company at Mumbai. In the year the Company began their Rayon Division at Kalyan near Mumbai to manufacture Viscose Filament Rayon Yarn. In the year 1960 they signed a technical collaboration and know-how agreement with Alemene Kunstzigde Unie N.V. of Holland and Verinigts Glazstoff-Fabriken AG of Germany to set up a super two-tyre yarn and a cord plant with capacity of 6 1/4 tonnes per day. In the year 1961 the Company obtained a licence for a rayon grade caustic soda plant of the capacity of 30 tonnes. In the year 1963 the company commenced production of Viscose Tyre Yarn / Industrial Yarn. In the year 1964 they commenced the production of Caustic Soda and other chemicals. In the 1969 they acquired a salt manufacturing unit at Jamnagar to ensure continuous supplies of good quality salt to the caustic soda plant. In the year 1974 the company diversified into production of Cement by establishing their first cement plant at Baikunth near Raipur (Chhattisgarh) to produce 0.60 million Tonnes Per Annum (TPA) of Portland Cement. In the year 1980 the company established their second Portland Cement plant at Maihar in Madhya Pradesh with a capacity of 0.80 million TPA. In the year 1984 the Company established Rayon and/or paper Grade Pulp and Writing & Printing Paper Unit with an installed capacity of 20000 tonnes each per annum at Lalkua near Nainital (Uttaranchal). In the year 1985 the Company established their third Portland Cement plant at Gadchandur in Maharashtra with a capacity of 1 million TPA. In the year 1987 the Company entered into new markets such as Taiwan South Korea Hongkong and Japan. In the year 1990 the chemical division of the Company obtained permission from the Govt. to introduce the membrane cell technology in the caustic soda plant. In November 1991 the Company was selected by the MP Govt. for establishing maintaining and operating a 2 x 210 MW thermal power station at Pench in the Chhindwara Dist.. The Company established a separate unit 'Century Power' to undertake the project. In the year 1995 the Company established their second paper unit based on Bagasse adjacent to the existing Pulp and Paper Plant at Lalkua with a capacity of 84600 tonnes of paper per annum. During the period of 1995-96 Company commenced commercial production in their fourth Portland Cement Plant with a capacity of 1 million TPA adjacent to the existing plant at Maihar. In the year 1997 they commenced generation in Thermal captive power plant. In the year 2002 the Company bunged its operations at Bagasse paper plant at Nainital and as new dimension made treaded into branded apparels by leveraging on its brand 'Century'. The company had ranged into value-added readymade garments in the year 2003 and also posted in accessories under the brand name of 'Cottons by Century'. In March 2005 the installation of 6 MW Power Plant using LSHS/Furnace oil was completed and the plant commenced commercial production. In cement segment the new captive thermal power plants of 15 MW at Maihar Cement Unit and 10 MW at Century Cement Unit were commissioned in March 2006 and April 2006 respectively. In October 2006 the company's project on blended cement was registered under the Clean Development Mechanism with the executive body of the United Nations Framework Convention of Climate Change (UNFCCC). In February 2007 the company commissioned the expanded Paper unit for manufacturing Paper from waste paper with a capacity of 211 tonnes per day. During the year 2007-08 the company completed the modification and upgradation work at all cement units was completed and the cement manufacturing capacity was increased to 7.80 million tonnes per annum with effect from March 1 2008. The company set up a new clinker line of the capacity of 2.50 million tonnes and an equivalent cement grinding facility adjacent to the existing plant of Manikgarh Cement at Gadchandur Maharashtra along with a captive Thermal Power Plant of 40 MW. During the year 2008-09 the company commissioned the prime grade tissue paper plant at Lalkua Dist. Nainital Uttarakhand with a capacity of 100 tonnes per day for manufacture of a number of varieties of tissue paper.On 4 October 2014 Century Textiles and Industries (CTIL) announced that the company's Manikgarh Cement Unit No. II (expansion unit) with a capacity of 2.80 million tonnes per annum has commenced production of cement and started cement dispatches from 26 September 2014.On 1 February 2016 Century Textiles and Industries (CTIL) announced that at a meeting of the Board of Directors of company held on 1 February 2016 it has been decided that activities related to real estate development presently being carried under different divisions of the company should be consolidated and undertaken under a new division viz. `Birla Estates' for development of surplus land available with the company located at its various divisions and also to undertake business activities such as Builders Promoters/Developers for land & buildings etc. including purchase of land anywhere in India. The Board of Directors of Century Textiles and Industries (CTIL) at its meeting held on 22 August 2017 approved the sale of Century Yarn and Century Denim units of the textiles segment situated at Satrati in Madhya Pradesh on a slump sale basis as a going concern for a lump sum consideration of Rs 2.51 crore. CTIL said that the operations of the Yarn and Denim units were not viable due to their small sizes and hence it was considered appropriate to sell these units. On 1 February 2018 Century Textiles and Industries (CTIL) announced that with effect from 1 February 2018 CTIL has granted Right to Manage and Operate the Viscose Filament Yarn (VFY) business of the company to Grasim Industries Limited (GIL). Consequently the company shall be deemed to have suspended operations of VFY business during a period of 15 years with effect from 1 February 2018. Earlier the Board of Directors of CTIL at its meeting held on 12 December 2017 approved entering into agreement with Grasim for granting Right to Manage and Operate the Viscose Filament Yarn (VFY) business of the company to Grasim for a duration of 15 years for a commuted royalty of Rs 600 crore. Grasim shall also provide CTIL Rs 200 crore as in interest-free refundable security deposit and pay to CTIL consideration for the transfer of working capital to Grasim at actual. Post completion of the tenure of the agreement CTIL shall resume operations of the VFY business.The Board of Directors of Century Textiles and Industries (CTIL) at its meeting held on 20 May 2018 approved the draft scheme for the demerger of the cement business of the company into UltraTech Cement Limited. The Board has approved the swap ratio as recommended by the independent valuers of l (one) new equity share of UltraTech for every 8(eight) equity shares held in CTIL. CTIL said that the demerger aims at deleveraging CTIL's balance sheet and creating an opportunity for its next phase of growth in the remaining businesses with a primary focus on Real Estate. It also achieves unlocking of the value of the cement division to its shareholders through the issuance of equity shares of UltraTech directly to the shareholders of CTIL. UltraTech is the largest and one of the most valuable cement players in India and the shareholders of CTIL will continue to have exposure to cement through their highly liquid equity shareholding in UltraTech.During the year 2017-18 the Company has incorporated a Wholly Owned Subsidiary namely Birla Estates Private Ltd for the purpose of undertaking Real Estate Development Projects. In view of no business left to undertake the Board of Bander Coal Company Private Ltd. Company's associate has commenced the process of voluntary liquidation of the said associate and has already appointed a liquidator under the applicable provisions of law.As of 31 March 2018 Industry House Ltd. in which Company holds about 35% shares is an Associate Company.During the FY2019the Company has undertaken a project to expand the Prime Grade Tissue Paper Plant capacity from 100 tonnes per day to 200 tonnes per day with an Anchor GSM of 19 grams at a total capital outlay of Rs 100 crore at the existing Pulp and Paper Plant at Lalkua District Nainital Uttarakhand. The project is expected to be commissioned and operational in the 2nd quarter of FY 21.During the year 2018-19 the Company has incorporated a Wholly Owned Subsidiary namely Birla Century Exports Private Ltd for the purpose of conducting distribution business in the USA directly with brands and retailers.During the FY2020the company done Technical upgradation removing of bottlenecks and balancing the Bagasse based (PM3 Machine) and recycle paper-based paper plant (PM4 Machine) with an investment of Rs 65 Crore which will increase monthly paper manufacturing capacity from 7200 Mt to 8500 Mt for each plant. This expansion will help in reducing overall manufacturing cost (of these two machines) quality improvement and increase in production. Also Installation of new evaporator at a cost of Rs 105 Crore.This will help lowering down Power cost and increase in pulp production.During the year 2019-20 the month of March saw the world being impacted by the COVID-19 pandemic and the nation going into a lockdown. The lockdown disrupted the normal business activities and created pressure on absorption and collections.During the FY2021the total exports of the Company amounted to Rs 345.85 Crore as against Rs 598.72 Crore in the year 2020 representing about 12.91% of the total income.During the year 2020-21the new Tissue Plant to manufacture Prime Grade Tissue Paper with a capacity of 100 tonnes per day was installed and trial run of the plant has been started on 14 March 2021. Due to Covid-19 no erection and commissioning activities have been undertaken during 2020-21 for upgradation of paper machines 3 & 4 and for installation of a new evaporator.During the quarter ended 30 September 2021 pursuant to a Joint Venture Agreement with Grasim Industries Limited the Company has incorporated a joint venture company namely Birla Advanced Knits Private Limited to foray into manufacturing of Man Made Cellulosic Fibre (MMCF) Knit Fabrics. The Company and Grasim each have 50% holding in the joint venture company.During the year 2021-22 Company launched two new real estate projects viz. `Birla Niyaara' at Worli Mumbai in the month of February 2022 and 'Birla Tisya' at Rajajinagar Bengaluru in the month of December 2021. Besides this the second phase of `Birla Vanya' Kalyan was launched in the month of September 2021. During the year Birla Estates Private Ltd. a Wholly Owned Subsidiary of the Company signed an agreement to jointly develop a prime 52-acre land parcel in North Bengaluru with M S Ramaiah Realty LLP. It formed a Joint Venture in collaboration with Grasim Industries Limited namely `Birla Advanced Knits Private Limited' (JV Company) to manufacture Circular Knit Fabrics in Bharuch District.During 2022-23 as part of technical upgradation and production enhancement Paper Machine no.4 (Recycle based paper) was upgraded with a new state of Art technology Shoe press along with Nipco-P roll leading to increase in production capacity byup to 20% on account of sheet dryness increase. This resulted in reduction in steam consumption increase in Moisture and qualityimprovement. Head box servicing and change of both top and bottom lip was done along with shoe press installation to reduce 2-sigma cross directional GSM variation in final Paper. In addition to this Rewinders of Paper Machine nos.3 and 4 were also technically upgraded with new slitting station from Mariocotta Italy to improve the cutting quality. DCS of De-inking plant and Paper Machine nos. 3 and 4 was upgraded in place of obsolete system to keep automation reliability. Double doctoring at Couch to avoid rewetting and Edge Trim Squirt box to reduce Edge cuts/trim carryover with paper was additionally installed on both Paper Machine nos. 3 and 4 for better machine runability. Erection work of new Evaporator equipment was completed.During the year 2023 Company completed 2 commercial projects Birla Aurora Worli and Birla Centurion. It launched 5 residential projects Birla Alokya Birla Navya and Birla Vanya Birla Niyaara and Birla Tisya' establishing its presence in major cities such as Mumbai Metropolitan Area (MMR) the National Capital Region (NCR) and Bengaluru.