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G. Gurumurthy

COIMBATORE, May 27

SUPER Spinning Mills Ltd, the flagship textile company of Sara Elgi group, which has given a push to value-added textile production through forward and backward linkages to its core business of yarn manufacturing, has planned to enlarge capacity of its garmenting unit with new investment.

The company has also proposed to increase the volume of yarn outsourcing through hire capacity to avoid further investments in yarn production. Instead, the Coimbatore-based textile major has chalked up plans to acquire additional wind energy generation plants to add 950 kw capacity more wind energy generation.

"Super Spinning Mills will be investing anywhere between Rs 15 to 20 crore this year under the TUFS projects which will include Rs 4.2 crore on the garment unit to enhance capacity. The garment unit started last year is set to achieve 3,000 pieces per day after the capacity enlargement and we'll be adding 150 new stitching machines in the unit," the Managing Director of Super Spinning Mills, Mr Sumanth Ramamurthi, said.

Super Spinning, with 1.3 lakh-spindleage in-house, had last year hired spindle capacity up to 60,000 to produce yarn on conversion basis.

Considering its strength in yarn marketing, the company has proposed to go for an additional 30,000 hire spindleage this year so as to take total hire spinning capacity to one lakh spindle. Hiring spinning capacity will help save the resource on plant and machinery investment for the company, according to Mr Ramamurthy

While briefing the presspersons on the company's financial performance yesterday, Mr Ramamurthy also outlined the long time strategy of the company which includes installing its own textile processing facility and entering weaving of wider width fabrics which has export potential. "Immediately, the company would be outsourcing fabrics on job work basis," he said. The company is also looking at the scope of setting up gas-based power plants to back up the energy needs for its textile spinning units in Andhra Pradesh's Ananthapur district as these units account for largest spindleage owned by Super Spinning.

"The idea is to bring down the cost of power which works out to 10 per cent of the sales turnover and the investment on additional wind energy equipment estimated around Rs 4 crore would enable the company to bring down the energy cost to around 8.5 per cent," Mr G. Umamaheswara Reddy, head, finance and accounts of the Super Spinning Mills, said.

A major cotton yarn exporting company, Super Spinning's yarn exports in the just concluded financial year stood at Rs 124 crore in the Rs 269 crore net sales. "We are projecting a 10 per cent increase in cotton yarn export for the current year," the Chief Operating Officer of Super Spinning, Mr K.R. Seethapathy, said.

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