- **Suryalata Spinning Mills is fundamentally a manufacturer of synthetic blended yarns - one of India’s largest producers of ring-spun yarn - operating two large-scale spinning units in Telangana for over four decades. It was founded in 1983 to supply consistent, quality yarn to the textile industry, and its recurring approach has been to upgrade its entire spinning capacity into value-added specialty products while installing solar power plants for captive consumption to structurally reduce its power cost. That pattern - move up the value chain in yarn, then own the power that runs the machines - explains everything the company has built.** # Business segments Two engines that feed each other - a specialty yarn manufacturing business that is the company’s entire commercial identity, and a captive solar operation built to lower the cost of running it. ## 1. Synthetic blended yarns: the company’s sole manufacturing engine **It converts polyester, viscose, silk and cotton fibres into a wide range of specialty yarns across two integrated plants, selling to domestic dealers and export markets with a business model that needs almost no marketing spend.** - **A single-product specialist with deep variety** - the company makes 100% polyester yarns, 100% viscose yarns, polyester-viscose blends, and value-added yarns like slub, elite twist, compact and TFO (two-for-one twisted) yarns, in counts from 10s to 60s, plus vortex yarns made on a newer spinning technology that produces superior quality. Earlier lines also included mélange yarns. The yarns go into suitings, shirtings and knitwear, and end up in everything from fashion and home furnishing to automotive, filtration and hygiene products. - **Two plants, one district, 90 tonnes a day** - both manufacturing units sit roughly five kilometres apart on the Kalwakurthy-Jadcherla road in Nagarkurnool district, Telangana, about an hour from Hyderabad airport. Together they run 1,19,280 spindles and 8 vortex spin machines, producing roughly 90 metric tonnes of yarn daily with a direct workforce of 1,450 people. The 8 vortex machines are equivalent to 12,000 ring spindles, and the company has already built the infrastructure to add capacity equivalent to another 30,000 ring spindles in the coming years. - **Sold through dealers, not storefronts** - the company sells to B2B dealers concentrated in Mumbai, Kolkata, Delhi, Ahmedabad, Ludhiana and Ichalkaranji, while exports reach Brazil, Turkey, Spain, Iran, Argentina, Peru, Indonesia and other European countries, all denominated in US dollars on an FOB basis. Management describes the model as simple with minimum marketing requirements, built entirely on a strong market presence, a reputation for quality and timely supplies, and an experienced management team with deep textile industry exposure. - **A major buyer from a major supplier** - the company is one of the largest customers of Reliance Industries, consuming roughly 5% of Reliance’s polyester staple fibre production, which gives it procurement scale in a commodity where fibre prices fluctuate and sale prices are often linked to raw material costs. India’s abundance of polyester, silk, viscose and cotton keeps the supply base local, though the company still faces foreign-currency exposure on imported raw materials, spare parts and capital equipment. - **Water recycled, not wasted** - both units run state-of-the-art sewage treatment plants that purify and recycle 95% of the water used in the factories, a structural efficiency measure in a thin-margin industry where every input cost matters. ## 2. Captive solar power: the cost shield underneath the yarn business **Roughly 15 megawatts of solar plants installed inside its own manufacturing units supply about 30% of the company’s annual power needs at roughly Rs. 2.20 per unit, turning the single largest operating threat into a structural advantage.** - **Power is the industry’s pain point** - management has repeatedly flagged high power costs as a threat to the thin-margin synthetic spinning industry, so the solar investment is not a side business but a direct cost-mitigation strategy embedded in the factory footprint. - **Built in phases, now at scale** - the solar rollout started with a mix of build-operate-transfer and outright capital-expenditure installations: 4.3 MW at the Kalwakurthy unit on a BOT basis, 4.6 MW at the Urukondapet unit on a CAPEX basis, and a further 1.2 MW under a BOT model, with another 1 MW added from internal accruals in April 2022, bringing the total to roughly 11 MW by FY22. By FY25 the installed captive capacity had reached about 15 MW, mitigating 30% of annual power requirements at an average cost of roughly Rs. 2.20 per unit. - **A subsidiary with a government contract** - the company also owns a 10 MW solar plant through its wholly owned subsidiary Suntree Solar Energy, acquired in January 2023, which operates under a 20-year power purchase agreement with the Telangana government (11 years remaining as of FY25) and supplies power to the state distribution company. This plant sits on 64 acres in Telangana and runs as a separate revenue stream, though it is tiny relative to the yarn business. # Group structure and partners **A family-run, publicly listed manufacturer with one solar subsidiary, no joint ventures, and a tight circle of related-party relationships centred on yarn sales and power purchases.** - The company is listed on the Bombay Stock Exchange and managed by the Agarwal family: Vithaldas Agarwal as Managing Director, Mahender Kumar Agarwal as Joint Managing Director, and Madhavi Agarwal as Whole-time Director, with the latter two holding significant personal shareholdings. - The wholly owned subsidiary Suntree Solar Energy Private Limited was acquired from FS India Devco and First Solar Power India in January 2023 for Rs. 97.8 lakh, and it holds the 10 MW solar plant with the government PPA; the company has no other subsidiaries, joint ventures or associates. - Related-party transactions include yarn sales to Suryamba Spinning Mills (where the Managing Director’s son is a director) and solar power purchases from Surana Solar (which shares a common director), plus unsecured loans from the managing directors and to the solar subsidiary. - The company’s bankers are State Bank of India, IDBI Bank, HDFC Bank and IndusInd Bank, and its statutory auditors are M/s. K.S. Rao & Co., Chartered Accountants.