The Hindu Business Line : Suryajyothi Spinning joins hands with Italian company

Suryajyoti Spinning Mills Ltd (SSML) has forged a technical collaboration with an Italian textile major, with an eye on reaching global fashion houses like Versace, Armani, Diesel, Dolce and Gabbana.

The Hyderabad-based manufacturer of a wide range of yarns will set up the country's first specialty bottom weight fabric weaving, dyeing and finishing plant near Rajapur, on the outskirts of the city.

SSML will invest Rs 105 crore in the project, which would be close to the upcoming international airport near Shamshabad, and have an optimum capacity of manufacturing nine million metres and processing 20 million metres of bottom weight fabrics, according to Mr Arun Kumar Agarwal, its Executive Director.

The project would be funded by long-term debt (about two-thirds of the total Rs 105 crore), with the remaining part being met through a combination of internal accruals and equity capital. The production is expected to start in the second half of the financial year 2008, he told Business Line.

Bottom weight fabric is typically used as material for trousers, jackets and is cotton-based. "We are targeting to meet the demands of leading European fashion houses by producing quality material, using the Italian company's expertise, whose name he refused to divulge for strategic reasons," Mr Agarwal said.

A 50-acre land has been procured near Rajapur for setting up the fashion, boutique-oriented kind of processing unit. Machinery, which constitutes the bulk of the investment, was being imported from European manufacturers. The necessary clearances were also being obtained, he said.

Once, the unit starts production, it would give SSML, a high fashion/low cost option to meet the demands of the best known designer brands in the world in the specialty bottom weight fabric. It would also help the company transit into an integrated textile player, Mr Agarwal said.

SSML, which was spun off an independent company in 1992, from the family owned Group of Mills, will have a total capacity of 89,000 spindles, with the completion of the latest unit of 25,000 spindles in December at Rajapur. It will also equip the company with production facilities in coarse, synthetic and fine cotton yarn. SSML's plants are located in Makthal and Burgul of Mahbubnagar district.

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