Our commitment to excellence is evident in our product range & reputation built over years
Sitaram Spinners Private Limited, based in Hyderabad, Telangana, is a distinguished entity within the MS Agarwal conglomerate, specialising in the intricate craft of yarn manufacturing. Since its inception in 2008, the company has swiftly ascended to a leadership position in the industry, harnessing advanced technology and a team of seasoned professionals to produce exceptional quality yarn.
With over 15 years of experience, Sitaram Spinners has earned a stellar reputation for excellence and precision, positioning itself as a preferred supplier of premium yarn. The company’s journey is rooted in a visionary approach to transforming the spinning industry, as envisioned by its founding chairman. From humble beginnings, Sitaram Spinners has evolved into a state-of-the-art enterprise, operating a modern manufacturing facility powered by solar energy. This commitment to sustainability underscores the company’s dedication to environmental stewardship, further exemplified by its ambitious green initiative, which includes the planting of 1 million trees around its factories, zero water waste facility, biogas plant for minimum waste disposal, and mostly everything inside the plant is recycled.
Renowned for upholding the highest quality standards, Sitaram Spinners consistently delivers products that not only meet but exceed rigorous specifications and customer expectations. The company’s diverse product portfolio includes 100 per cent cotton Eli-twist carded and combed compact yarns, cotton, poly-cotton, viscose, poly-viscose, poly-core spun yarns, TFO double yarns, zero-twist yarns, and open-end yarns. Each product is meticulously crafted to serve both premium and commercial markets, both domestically and internationally.
Looking to the future, Sitaram Spinners is committed to navigating the competitive landscape of the global textile industry by prioritising continuous innovation. This includes advancing its technological capabilities to optimise operational performance and investing in research and development to enhance its product offerings.
Beyond innovation, Sitaram Spinners is deeply committed to corporate social responsibility (CSR). The company’s CSR initiatives are led by the Sitaram Suvidha Foundation, which is focused on community development. The company’s strategic agenda emphasises sustainable growth, with a focus on enhancing product design and development to meet evolving market demands. Equally, Sitaram Spinners places a strong emphasis on human capital development, nurturing and empowering its employees to drive the company’s success forward.
Recently, Fibre2Fashion had the opportunity to talk to Gautam Ganeriwal, Executive Director at Sitaram Spinners Pvt. Ltd., on the sidelines of the Gartex 2024 (Delhi edition). The discussion provided insights into the company’s strategic vision and its approach to overcoming industry challenges.
Ganeriwal shared his thoughts on the future of the industry and the steps Sitaram Spinners is taking to maintain its position as a leader in the yarn sector. Here are the excerpts.
How has been the journey so far for Sitaram Spinners?
Sitaram Spinners started its journey in 2008 with a modest setup of 14,400 spindles. Through consistent dedication and strategic growth, we have expanded to an impressive 83,000 spindles and 4,000+ rotors churning 80+ MT/day production. Today, we are proud to be India’s second-largest manufacturer of Core Spun Lycra yarn, reflecting our remarkable evolution in the yarn manufacturing industry.
Headquartered in Hyderabad, Telangana, we have become a key player in the yarn sector, particularly within the denim & bottom weight segment. Since our inception, we have been committed to perfecting the craft of yarn production. Currently, approximately 75 per cent of our products cater to the denim and bottom weight market, with the remaining 25 per cent serving various other applications.
Our product portfolio is diverse, including core spun yarns, Eli twist yarns, cotton, polyester, polyester-viscose blends, and other exotic blends. We have built a reputation as a premier supplier of high-quality yarn by continually investing in state-of-the-art technology and fostering a highly skilled team of professionals.
Exhibitions like Gartex are vital for us to showcase our offerings and align with market trends. We got tremendous response for our Eco Stretch Yarn products as well as pre-consumer goods indigo denim OE yarn. With India emerging as the one of the largest producers of denim globally, Sitaram Spinners recognises the significant growth potential in this sector, and our strategic focus remains on capitalising on these trends to maintain and enhance our position as a leading yarn manufacturer.
Talking of denim, there is a lot of focus on sustainability, considering the environmental implications related to traditional manufacturing practices. What are your views on this?
Sustainability is not just an option—it is a necessity, especially in the textile industry. In India, sustainability has long been embedded in our production practices. Indian denim mills, including ours, have been at the forefront of sustainable practices, with many earning gold-rated certifications for their eco-friendly efforts.
At Sitaram Spinners, we have integrated sustainability into our operations from the start. One of our key innovations is the Eco Stretch yarn, which is made from a blend of recycled polyester and recycled spandex and cotton. Currently, 10-15 per cent of our production capacity is dedicated to manufacturing core spun yarns using recycled spandex, recycled cotton, recycled polyester, organic/BCI cotton, and Regen-Agri cotton-based products. We have set ambitious goals to increase our sustainable spinning production to 50 per cent in the coming years.
Our commitment to sustainability goes beyond our products. We have invested in solar power generation and operate an in-house sewage treatment plant (STP), where nearly 100 per cent of wastewater is recycled and reused, ensuring minimal waste and a reduced carbon footprint. While sustainability requires upfront investment, it is essential for long-term viability and competitiveness. At Sitaram Spinners, sustainable practices are a core element of our business, and we are focused on innovating sustainable products that are both affordable and high-quality.
How is the Indian denim market shaping up, as you see it?
The Indian denim market has shown some stability recently, but with the significant increase in manufacturing capacity, we believe the market should ideally grow at around 5 per cent annually. While this growth aligns with the rising per capita consumption of denim, it may soon outpace domestic demand, making it crucial to boost exports.
One of the key challenges we face is the high cost of raw materials, which constitute about 80 per cent of yarn production costs. Compared to other countries, India’s raw material prices are significantly higher, spandex is around 30 per cent more expensive, polyester is 25 per cent higher, and cotton costs more than 10 per cent higher. These elevated costs push up product prices and make it difficult for Indian manufacturers to compete globally.
What can be done?
- Lowering Raw Material Costs: We need to focus on reducing the cost of essential materials like cotton, polyester, and spandex. This could involve better trade deals for importing these materials or offering subsidies to local producers to bring down prices. Trade and non-trade tariff barriers should be removed on raw material imports which will be make entire value chain competitive.
- Pursuing Free Trade Agreements (FTAs): India should actively pursue FTAs with major global markets, particularly in Europe and the US. Our competitors, like Pakistan, Türkiye, Vietnam and Bangladesh, already have such agreements, giving them a clear advantage in exports. We need similar deals to compete effectively.
- Investing in R&D: There should be a strong emphasis on research and development to find more cost-effective production methods and innovative products. This would help reduce reliance on expensive imported materials and lower overall costs.
- Improving Infrastructure: Enhanced logistics and supply chain infrastructure could significantly reduce operational costs, particularly in transporting raw materials and finished goods. Better transportation networks and port facilities would also make exporting easier and more cost-effective.
- Supporting Sustainability: As the global market increasingly values sustainability, offering incentives for eco-friendly practices could help Indian manufacturers stand out. This might include tax breaks or grants for companies investing in green technologies and production methods. State governments across India should come up with renewable energy friendly policy.
Looking ahead, the future of the Indian denim market should focus on not just increasing production but also improving quality and innovation. Our goal is to become a global leader in both the volume and value of our products.
- Expanding Globally: By securing FTAs and reducing production costs, Indian manufacturers can significantly increase their presence in key international markets. The objective should be to capture a larger share of the global denim market, setting trends and standards for quality and sustainability.
- Sustainable Growth: Emphasising sustainability in denim production is crucial for maintaining competitiveness. This includes not only adopting eco-friendly practices but also leading innovations like developing new sustainable fabrics or processes that use less water and energy.
- Becoming an Innovation Hub: India has the potential to become a centre for innovation in denim. By investing in technology and R&D, we can lead the way in creating new products and processes that set global benchmarks and attract international buyers.
- Diversifying Products: Beyond traditional denim, we should explore new applications and blends that cater to emerging fashion trends. This could involve smart textiles, functional finishes, and diverse yarn blends that meet the changing needs of global consumers.
In short, while the Indian denim market is on a solid growth path, strategic actions are needed to unlock its full potential on the world stage. By addressing current challenges and focusing on future opportunities, India can position itself as a leading player in the global denim industry.
What are your views on the growth prospects going ahead?
We are optimistic about the future; despite the challenges we face. The Indian government is actively addressing industry needs and working on establishing more Free Trade Agreements (FTAs), which could significantly boost the textile sector.
The quality of denim produced in India has improved considerably and is now on par with global standards. Local manufacturers are delivering world-class denim in terms of quality, output, and serviceability.
We anticipate that as interest rates in the US begin to decline and per capita consumption in the US and Europe increases, there will be a renewed demand for textiles. This expected recovery in the global market could positively impact the Indian denim industry, which has experienced subdued demand over the past year and a half. With continued improvements and market adjustments, we are confident that the industry will experience favourable growth in the coming years.
Which are your main markets—domestic or export?
Currently, the domestic market is the primary focus for Sitaram Spinners. While we do have a presence in the export market, with clients in Bangladesh, Türkiye, North Africa, and Latin America, our operations are predominantly geared toward the domestic market.
The balance between domestic and export business can vary depending on factors like raw material costs, which have recently made exports less competitive. Despite these challenges, we remain optimistic about future opportunities. We are committed to exploring new markets and strengthening our export capabilities as conditions improve.
Türkiye is a major player in the global denim industry, known for producing high-quality fabrics and garments. How is Sitaram Spinners positioned in this context, in terms of exports to Türkiye?
Türkiye is indeed a formidable force in the global denim market, with its major players being vertically integrated and equipped with advanced technology and innovative production processes. Despite this competitive landscape, Sitaram Spinners has successfully carved out a niche in the Turkish market by supplying specialised products that are more expensive for Turkish manufacturers to produce domestically.
This strategic approach enables us to maintain a competitive edge and sustain our presence in Türkiye. Our ability to offer unique products tailored to specific needs has allowed us to remain relevant and competitive, even in a market known for its high standards and advanced capabilities.
Any new innovations that you would like to talk about?
Yes, we have several exciting innovations that we are eager to share. One standout product is Eco Stretch, a yarn that combines recycled polyester with recycled spandex. This sustainable yarn not only offers excellent natural recovery and stretch properties but also helps reduce overall costs and environmental impact. Other notable innovations include Pre-Consumer Denim Recycled OE Yarn, 3D Max (Dual Core Effect) stretch yarns, Anti-slip Lycra stretch yarns, Adaptive Lycra stretch yarns, Biodegradable Lycra stretch yarns, and Biodegradable Polyester Core Spun yarns. These are just a few of the developments that Sitaram Spinners is currently focused on.
We are also placing a strong emphasis on using dope-dyed polyester-based products as an alternative to cotton. This shift not only saves on dyeing costs and reduces environmental impact but also promotes the transition from purely cotton-based apparel to blends of man-made and natural fibres, offering better functional properties.
Another innovation we are proud of is our recycled open-end yarn, which utilises denim waste clippings that are processed and mixed with recycled polyester. This yarn allows customers to reduce indigo consumption, as it already possesses inherent indigo properties.
Additionally, we have introduced Elite Twist Slub and Siro Compact Slub yarns specifically for denim mills. These products are designed to offer our customers more diverse and high-performance yarn options, enhancing product quality and helping our clients stay ahead of rapidly changing fashion trends while increasing profitability.
What kind of response are you getting for these innovations?
The response to our recent innovations has been overwhelmingly positive. In the past, we often had to introduce new products to our customers, but now we are seeing a growing demand for these developments. Customers are actively seeking out our innovations, reflecting a significant shift in market expectations. The feedback has been very encouraging, indicating that the industry is becoming increasingly receptive to advancements in yarn technology and sustainability.
Moreover, we are seeing strong interest from premium garment brands, particularly for faster developments of these products for their upcoming Spring/Summer 2025-26 collections. We are already in discussions with machine manufacturers to expand our product development capacities and enhance our ability to run multiple exotic blends simultaneously.
This positive response reinforces our commitment to innovation and continuous improvement in our product offerings, motivating us to keep pushing the boundaries of what’s possible in yarn technology.
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