In an effort to further improve its performance, Reliance Chemotex Industries Ltd. is planning to modernize two of its units which will increase the production capacity by 13 percent per annum. As part of this modernisation exercise, the company will also reallocate some machinery for research and development purposes which will help offer new and more value-added products to the company customers.
The modernisation project at a cost Rs. 35 cr will be completed in two phases, and post the completion the company expects significant savings in power consumption and repairs & maintenance cost which will further enhance the profitability.
Reliance Chemotex Industries, established in 1977, manufactures synthetic, blended yarn. It currently operates 53,280 spindles and a high temperature / high pressure fibre-dyeing plant. The company has been exporting yarn since 1987 and has a loyal customer base around the world. Its competitive advantage lies in its versatile product range and commitment to quality.
Commenting on the working results, Sanjiv Shroff, Managing Director of Reliance Chemotex Industries, said: “The Company’s performance for 2018-19 has been outstanding. We have reported a growth of 13 percent in total revenues. We were extremely positive about our prospects in the domestic market in FY18-19 and had anticipated growing domestic demand. Our performance this fiscal has confirmed our views. We are pleased to report that the company’s domestic sales have grown by 37 percent year-on-year and now account for 44 percent of its revenue (as compared to 37 percent in FY17-18). This growth was driven by a greater focus on value-added products in the domestic market. The focus on exports continues to remain an integral part of the company’s marketing philosophy. In value terms, our exports have also witnessed a 5 percent growth (Rs. 177.09 cr in FY18-19 compared to Rs. 169.05 cr in FY17-18).