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Divya Trivedi

Ahmedabad, Aug. 26 Textile major S Kumars Nationwide Ltd is expecting an addition of Rs 300 crore to its topline as its greenfield project in High Value Cotton Fabrics (HVFC) at Jhagadia begins commercial production in the last quarter of this financial year.

“The plant has three production lines with a capacity of 12.5 million metres a year shirting fabric and 28 million metres a year home textile material. It should achieve 100 per cent capacity utilisation within two years’ time, when our accounts will show results,” Mr Anupam Dikshit, Chief Operating Officer, HVFC, told Business Line.

The newly inducted HVFC unit is strategically important for the company as it will open the domestically focused company to international business, said Mr Anees Fazalbhoy, Director.

“We will use HVFC as a stepping stone for the export market, around 60 per cent of our production from there will be for exports,” he said. More than Rs 450 crore has been invested in the plant over the past two years, he added.

To front end the division, the company will announce the acquisition of a European company with the enterprise valuation of €40-60 million in the next few weeks.

It would be a robust high-end fabric manufacturer which already works with leading brands in the global market, he said. The second phase of expansions for the group will include setting up a garment unit at the same site, manufacturing both men’s and women’s wear.

The built up area at Jhagadia is around 70 acres. “The facility should be up during the third quarter of the next financial year and around 30-40 per cent production will be for women with blends of cotton and modal, cotton and lycra, etc,” said Mr Dikshit.

The company has hired expatriates (who have an idea of the overseas market), for posts including that of chief executive officer and designer, to look after the shirting business.

The company installed a gas-based turbine power plant and a waste heat recovery boiler at a cost of Rs 30 crore at Jhagadia for a more environment-friendly and efficient system of production. Though it is slightly expensive initially, it will help the company achieve carbon credits in the long-run, said Mr Fazalbhoy.

The group’s turnover was reported at Rs 1,750 crore for last year.

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