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    Spinning Project

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    The document announces a new textile project launched by Sintex Textile to ramp up its spinning unit from 300,000 spindles to 1 million spindles over five years. The project highlights India's advantage in the global textile industry due to abundant and low-cost cotton production, improving infrastructure, and favorable policies in states like Gujarat to incentivize the industry.

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    Spinning Project

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    78 views21 pages
    The document announces a new textile project launched by Sintex Textile to ramp up its spinning unit from 300,000 spindles to 1 million spindles over five years. The project highlights India's advantage in the global textile industry due to abundant and low-cost cotton production, improving infrastructure, and favorable policies in states like Gujarat to incentivize the industry.

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    Sintex & Textile

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    The document announces a new textile project launched by Sintex Textile to ramp up its spinning unit from 300,000 spindles to 1 million spindles over five years. The project highlights India's advantage in the global textile industry due to abundant and low-cost cotton production, improving infrastructure, and favorable policies in states like Gujarat to incentivize the industry.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    78 views21 pages

    Spinning Project

    Uploaded by

    MLastTry
    The document announces a new textile project launched by Sintex Textile to ramp up its spinning unit from 300,000 spindles to 1 million spindles over five years. The project highlights India's advantage in the global textile industry due to abundant and low-cost cotton production, improving infrastructure, and favorable policies in states like Gujarat to incentivize the industry.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 21

    New Textile Project Launched

    Spinning Unit with 300,000 spindles to be ramped up


    to 1 Million Spindles in ve years

    Content
    The Sintex Textile exposure
    Textile Trade Globally
    Yarn Scenario
    Advantage India and Gujarat specically
    Process Flow and Equipment Images
    Project Highlights

    Sintex Textile Trend


    500
    450
    400
    350
    300
    250
    200
    150
    100
    50
    0

    2008
    2009
    2010
    2011
    2012
    2013

    Sales(INR CR)

    Ebitda(INR CR)

    Maintained high margins consistently and serve the best of worlds


    clientele with High End Structured Dyed Yarn Fabric. Six decade of rich
    experience in Textiles.

    Textile Trade Globally and India


    Globally $708 Bn grew from 527Bn in 5 years. ( Cotton is 117 Bn: 16.52%)
    India Share $29.4Bn. India Third largest Producer of Cotton in the World
    after US and China. India Textile is 4% of GDP and 17% to Exports Earnings.
    India exports 25% of Cotton and is abundantly available. Gujarat produces
    70% of India Cotton (grew from 2.3mn bales to 12.3mn bales in 10 Yrs).
    India Acreage for cotton increasing every year as compared to China,
    where it is decreasing due to focus on food grains and other priority
    crops.
    China and other countries cost of Production increasing like Labor and
    Power.
    India emerging better production country due to improvement in
    Infrastructure, Power, Indigenous talent and Value add production from
    Fiber to Fashion

    India Yarn Scenario

    Asia holds 85% market share Globally. Asia is dominating now and China and India together hold 78% of Asia
    share. India has 47.8mn spindles (20% share globally) operating at 80% utilization. Likely to grow to 66mn by
    2020.

    India would reach 8 Mn TPA of yarn with 1.5 Mn TPA exports by 2020. The country would add about 75000
    shuttle less looms by 2020. Approx 72% of yarn capacity ( Total currently 4.7 Mn TPA) is to Cotton and exports
    1.07Mn TPA.

    The demand to further go up (almost 20%) due to domestic as well as overseas, as production in some
    countries decreasing due to cost of production and acreage. Cost of factors of production now favorably
    poised (labor, Power, Finance with subsidy).

    The Price of Cotton ber to Yarn increased only by 4% in China as compared to 50% in India YOY. India the
    cotton prices went down by 3% while Yarn prices went up by 19%, hence margins surged.

    Currently serviced by small unorganized units spreads over States which are power decient and not so
    ecient. Total 3273 units with 1333 small units.

    All leading MNC manufacturers of Spinning unit equipment like Rieter, Toyota, Truetzschler, Zinser and
    Oerlikon Schlaforst etc all have their bases in India, in form of JV, Sales and Service Centre etc.

    India Enterprising skills have improved a lot and now competing with best in the world. India has stable
    Government, Economic policies and constantly improving Infrastructure.

    Gujarat New Textile Policy


    7% Interest Subsidy over and above 4% TUF by Central Govt. Hence cost of
    borrowing is almost Zero.
    Gujarat has surplus power and will be available to Spinning units on subsidized
    rate lesser by Rs. 1/unit.
    Duty exemption @ 15% on power tari is also expected
    VAT refund till cost of Project is recovered.
    Gujarat has 70% of cotton production but production of Yarn mainly outside states
    which are not so power ecient.
    Policy intended to increase value add in entire chain of Fiber to Fabric and Fabric
    to Foreign, and hence better earning to farmers as well as Industrialists.
    Good Infrastructure in terms of Roads, Ports and Industrial environment.

    Process Flow
    Sorting & Mixing
    Blow Room
    Carding

    Draw Frame
    (Breaker)
    Lap Former

    Draw Frame
    (Finisher)

    Comber

    Speed Frame
    Ring Frame

    Winding

    Ass.Winder

    TFO

    Conditioning

    Inspection

    Packing &
    Dispatch

    Blow Room (Auto Bale Plucking)

    Blow Room (Opening Of Cotton)

    Blow Room (Opening and Transporting of Cotton)

    Carding Machine (Fiber to Fiber Preparation)

    Draw Frame (Evenising & Parallelizing of Fiber)

    LAP Former

    Comber (Removal of Short Fiber)

    AUTO-LEVELER Draw Frame


    (Evenising & Parallelizing of Fiber)

    Roving Frame

    (Intermediate Stage of Yarn Forming)

    Ring Frame - (Yarn Forming)

    Automatic Cone Winder

    (Removal of Yarn Fault and Making Bigger Package)

    Yarn Conditioning

    (Setting of Twisting Yarn and Improving Performance)

    Project Highlights
    300,000 spindles unit to cost approx INR 1700 Crores. This is
    likely to be ramped up to 1 million Spindles in 5 years time
    horizon.
    300K unit to provide 500 direct and 1200 indirect employment.
    The Project to yield IRR of 18%
    The project to payback in 3-4 years
    The Project COD approx within 24 months.
    The Project to augment better protability on existing business
    due to value add Yarn and with in house production benets.

    www.sintex.in

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