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
