Ambika Cotton Mills

@rohitbalakrish_
when we are directing a question/ to-do/or replying to a specific person lets get into the habit of marking the userid.
2 benefits
a) the addressed person gets notified, asap
b) the more a person is addressed specifically - it shows up - the person is a valuable resource for the community!!

So Rohit, we want that RM commparison using all heads like you mentioned for Ambika, Nitin, Cheslind and more if you can. Maybe something will come out of it too, another angle?

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And here’s some blending data and industry jargons we need to know, to dissect better

Not sure, but I think this blending data was for 50-60s count.
The more finer count that you do, the more ELS Giza or Pima you need to import and blend in. DCH and MCU-5 are Indian varieties. Giza (Egypt) and Pima (US) cotton have properties of better strength with extra long staple (33 mm or higher).

Also these are pure uncontaminated cotton - as plucking is mechanised. In India and Africa lot of contamination comes in at the plucking stage and packing/transport stage - contamination can be from plastics thread of gunny bag, beedi/paan/tambaku left over, or wharever :smile:

Same disclosure as before. These are only pointers for us to get a better handle on. I might have got something wrong. Basically we need to ask the same questions - why do we do blending, what’s the blending mix, what are the prices, what are the individual variety strength/weakness, etc

Donald,
Apology for delayed response, but let me try to clarify some queries:

  1. As on April 2015, price data for various cone yarn as under
    20s 151.00
    30s 167.50
    40s /42s 193.00
    60s Card 237.50
    60s / 62s comb 265.00
    This are domestic Coimbatore market price. My estimate of 80s Combed would be Rs 360-370 per kg.

  2. Count above 60s is normally considered finer count. During the spinning, there are process which lead to improve quality of yan called carding and combing. Carding account for 20% of cotton waste and combing take further 10% of cotton waste. All finer counts are generally required combing, while count below 40s may be only carded, ( in which case price is lower) or combed (in which case quality is superior and price is higher).

  3. MES for Cotton spinning continues to 25,000 spindle. However, recently, many players like Alok, Welspun and Vardhman also moved into forward integration of fabric processing and accordingly did added capacity of around 2.5 Lakhs spindles at one unit. (I remember working on credit appraisal for Vardhaman at 250,000 spindles during 2005).

  4. Capex per spindle shall checked but believe would not vary singificantly

  5. I made mistake in naming Jayalaxmi. Shankar 6 is normally used for 30-40s count. Suvin (and not Jayalaxmi is used for 80-100s count) which is growth in Tamil Nadu. MCU-5 is another cotton used for 60s count.
    Enclosed is link for more information
    http://www.cicr.org.in/pdf/cotton_varieties_hybrids.pdf

  6. In order to get 60s count, one has to use long staple varieties only. for 80s Suvin above 100s is Pima or Super Pima/Giza and 120 above Giza

  7. No blending of shorter fiber can be used for higher counts as per my knowledge

  8. Please check with company. However, generally company specialised in lower, medium and finer counts. Same spindle can produce all the counts but carding/combing and labour specialisation restrict choice of counts for the company. For less than 20 count, Open End Spinning (also called Rotor machine instead of spindle) is more efficient production process. However, Open end is not suitable for finer counts due to superior quality requirement.

  9. Indian Cotton spinning production is given. I believe global demand would also be broadly in line with Indian volumes.

  10. Compact spinning make yarn surface even with reduce wastage and also reduce twist time resulting in better quality yarn with marginal cost saving. Compact spinning can be done for any ring spun yarn count.

Please note that I am not technical expert and my information/knowledge has that constraint. You can consider market related and costing information which I am more confident than on technical stuff.

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@dd1474

Thx. Marketing information is most important - what we need at the moment :slight_smile:

I have been asking everyone to work on getting me a Market Map …but no one is obliging :frowning:
Perhaps you can work on getting us names of the higher count/compact spinning players, capacities, total spindles, compact spindle number/ratio.

I have some names, but not telling :).
This is very important in the VP process, and we want all those who like to work in-depth with data, to get the priorities right!

Total Installed Spindles: 49.46 million as on MArch 31 2014
Total installmed rotors: 0.814 million as on March 31 2014 (1 rotor~6 spindles)

Top 10 cotton yarn producer in India in FY14 as per textile commission officer

Countgroupwise cotton yarn production in India

Count wise cotton yarn production in FY14

Cotton yarn Exports from India

Find enclosed global cost competitive of cotton yarn
http://www.txcindia.gov.in/html/compendiuminter08-09/T-103.pdf

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Cost of production for a typical Cotton spinning mills on Page 3. 40s Carded, Combed and Compact yarn comparison give a very good understanding about gain of using compact yarn process.
http://www.sitra.org.in/images\pdfs\may-june2014.pdf

Times of India Article suggesting compact spindles in Indian industry

@dd1474

Thanks for posting copious data. Wonderful data.
Can I request you to organise this better if possible in a single doc - for better consumption of folks, and less clutter in thread. We generally get lost in too much of data/information overload

  1. If you have these in excel format, please include all data in a single excel. Even if they are images, request you to compile in 1 doc/or ppt
  2. This will help anyone get everything at a single place, and play with what is important to focus on, rather than get lost in all the voluminous data :smile:

Our impressions on what data is useful from above

  1. Top 10 yarn producer - not useful; we need top 10 higher-count producers - those who only do above 40 counts
  2. Count group-wise production of cotton yarn - extremely relevant data - if this is in excel great - can someone quickly compute for groups as shown in our market segment data - to reverify the figures
  3. Count-wie cotton yarn production - Think this data is for conventional spinning, not compact - as we can do higehr count with lower cost RM now. Need to speak to experts here
  4. Country-wise exports data - Is this exports out of India to these countries/markets? If yes, then again very useful data - we can try grouping in Europe, SE Asia, E Asia like Ambika segments to see - where is the room for growth, or where they need to make new inroads

If you can do the above, compile excel or images in a single doc and upload, we will clear the above posts - to maintain easy consumption of data, and present only the high-level findings. Anyone wants to drill down, al the data is there

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@Donald @ayushmit

Adding a few more names to the list (Only those who do above 40 count). This list is from Reiter’s client list- there are about 14 more names to this list. Premier, Gimatex, Fertichem Cotspin etc

Here is a list of some of the listed spinning players and their product profile. I have extracted this from their website. I will add to this list as I continue my work. I have excluded those players who don’t have are not focusing on cotton yarns.

Your hypothesis is right that there are very few players who manufacture yarn beyond 40 count… In the list below there are 2 who do so. Nahar & Precot Meredian. Will post more data soon.

Also read a report which had the following take aways:

  1. Import quality cotton is much better than Indian Cotton (Those who import a lot of cotton- maybe are producing high quality yarns and thus high margins)
  2. 50-70% of costs for a spinning mill are RM costs. Implication for us -Understanding cotton cycle could be important
  3. ~60% of cotton produced in India is through ring spun technology, followed by rotors.

The report is here

Guys, anyway to get this report? Seems to have some good info… There are individual profiles on company that should solve our purpose… and also has some good sector gyaan

http://www.icra.in/Files/ticker/SH-2014-Q3-1-ICRA-Cotton%20&%20manmade%20yarns.pdf

@rohitbalakrish_

What was the problem? Downloads as is. Attached. Contents not checked yet :stuck_out_tongue:

SH-2014-Q3-1-ICRA-Cotton & manmade yarns.pdf (664.5 KB)

@Donald The report is just a intro… The end says please contact for the full detailed report

Oops ! Okay, let me ask for help

@rohitbalakrish_ are you sure about the data? I think there would be lot many more players in 40-80 count category and some in above 80 category.

For the sake of mentioning, I think a lot many more players would be mentioning higher counts on their website also it would be a small part of their turnover.

Regards,
Ayush

1 Like

@rohitbalakrish_ @ayushmit @Donald

The same report abstract for January 2015

http://www.icra.in/Files/ticker/SH-2015-Q1-1-ICRA-Cotton%20&%20manmade%20yarns.pdf

@ayushmit I have picked this from their individual websites. Also this list is not exhaustive there are still many players that are not there even from the listed space. Though for the above list, I am confident of the data unless they haven’t updated their website, which could be the case.

@Donald

Pasting some comps data -

  • Sales, EBITDA & PAT CAGR over last 5 years

  • EBITDA margins and cost head comparison

  • Balance sheet and CFO position

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@rohitbalakrish_

Thanks.
I was asking to see your RM calculation for all - including change in inventory/purchase etc as you had done before - if it made any difference in the broad trends.

@Donald Yes.

The RM cost (as calculated by taking changes in inventories and purchases) for Nitin is lower from the earlier method (only taking the RM head). For Ambika it is the opposite. The RM costs are higher in this case v/s the earlier method

Maybe Nitin is better at procuring cotton as it has some inventory gains that helps get its RM costs down, Anything else you can think of?

I am just re-pasting the data for referene

Data by Donald (Only RM head)

RM costs including changes in inventory and purchases.

Here is Nitin’s Product profile with their count range… This guy works for Nitin

https://www.linkedin.com/grp/post/4350383-5945409533277917188