Hyderabad-based yarn producer Suryajyoti Spinning Mills Limited is expecting to garner export revenues of Rs 160 crore once its weaving and processing (finished product) plant on the city outskirts reaches full capacity utilisation of 18 million metre per year in the next six months.
“We are currently utilising 9 million metre capacity per year of the total installed capacity at the plant as we are yet to stabilise our nationwide market reach. We will be going in for full capacity utilisation in the next six months,” RK Agarwal, managing director of Suryajyoti Spinning and chairman of AP Spinning Mills Association, told Business Standard.
Suryajyoti had commissioned its weaving and processing plant last year with an investment of Rs 130 crore, raised through issue of foreign currency convertible bonds (FCCBs) and debt from State Bank of India. The plant commenced commercial production last month, and is currently catering to the requirements of global apparel majors like US-based GAP Inc and Tukish garments brand Taema.
“We clocked export revenues of Rs 90 crore last year, and expect this touch Rs 120 crore on the back of the revenue addition from export of our finished products,” Agarwal said.
The company, which has a combined capacity of 90,000 spindles at its two plants in Hyderabad for yarn production, is contemplating using its weaving and processing plant as a backward integration unit to enter into the apparel manufacturing business. “Though at the drawing board stage right now, we are seriously considering foraying into the garmenting segment in the next two years,” he said, while declining to share further details.
Suryajyoti Spinning projects its revenues to touch Rs 300 crore this financial year as against Rs 220 crore last year. Its scrip ended the trade at Rs 16.50 on the BSE on Wednesday, down 2.94 per cent over the previous close of Rs 17.