### **Overview** Century Enka Limited, established in 1965 in collaboration with AKZO Nobel of the Netherlands, is one of India’s leading manufacturers of **Nylon Filament Yarn (NFY)** and **Nylon Tyre Cord Fabric (NTCF)**. With advanced manufacturing facilities in **Pune, Maharashtra** and **Bharuch, Gujarat**, the company has evolved into a key player in both synthetic textiles and technical textiles, particularly in tyre reinforcement materials. The brand **‘Enkalon’** symbolizes premium-quality nylon yarns known for their softness, luster, and performance across diverse applications in apparel, industrial use, and automotive sectors. --- ### **Core Business Segments** 1. **Nylon Filament Yarn (NFY)** - A market leader in India with ~25% domestic share. - Produces a wide range of NFY including mono filament, POY, FDY, DTY, dope-dyed yarns, mother yarn, and draw-wound yarns. - Applications span: - **Ethnic wear** (sarees, lehengas, sherwanis) - **Activewear & intimate apparel** (sportswear, moisture-wicking fabrics) - **Industrial uses** (conveyor belts, fishnets, packaging materials) - Emphasis on **value-added and customized products** to differentiate from low-cost Chinese imports. - Strategically moving up the value chain, with **over 35% of portfolio now value-added**; target to exceed **50% in the next few years**. 2. **Nylon Tyre Cord Fabric (NTCF)** - Holds ~23% domestic market share. - Supplies reinforced fabric for: - Motorcycles, scooters, LCVs, MHCVs - Agricultural, off-the-road (OTR), and specialty vehicles - Customized solutions developed in close collaboration with OEMs. - **98% customer retention rate**, indicating high satisfaction and deep client relationships. - Expanded NTCF capacity to **32,000 metric tons per annum** via technological partnerships with **Litzler (USA)** and **Barmag**. 3. **Polyester Tyre Cord Fabric (PTCF) – New Growth Engine** - Entered the PTCF market to diversify into passenger vehicle radial tyres. - Domestic demand estimated at **35,000 tons/year (±3,000 tons)**, 80–85% currently imported – a major **import substitution opportunity**. - PTCF project designed to meet ~10% of India’s domestic demand. - Commercial production expected by **Q4 FY25**, pending customer approvals. - Projects PTCF to achieve **EBITDA margins comparable to NTCF** once ramped up. - Production is flexible — plant can **switch between PTCF and NTCF** based on market needs. 4. **Technical Textiles Expansion** - Repurposed idle polyester POY lines into **High Tenacity Nylon Yarn (HTY)** for defense, industrial, and specialty applications. - Market response to HTY has been highly positive, validating strategic shift. - Exploring additional applications in fishnets, seat covers, and safety gear. - Investing in **draw texturing** to enhance durability, strength, and lightweight properties of yarns. --- ### **Production Capacity & Infrastructure** - **Total capacity**: ~92,000 MTPA across NFY, NTCF, and PTCF. - Two main manufacturing plants: - **Pune**: Focused on NFY and new PTCF production. - **Bharuch**: Core hub for NTCF with advanced dipping capabilities. - **New 2023 initiative**: On-site **dipping line commissioned in Pune**, eliminating inter-plant transport to Bharuch—reducing costs, emissions, and lead times. - Integrated value chain for nylon, except caprolactam production (though waste recycling partially addresses this). - Achieved **Zero Liquid Discharge (ZLD)** at both plants; RO systems reduce freshwater use by 365 m³/day at Bharuch. --- ### **Sustainability & Innovation** - **Environmental Leadership**: - OEKO-TEX® STANDARD 100 certified — ensures human and environmental safety. - Uses **dope-dyeing**, reducing water use and chemical pollution. - Transitioned to **biodegradable packaging** and compliant with CPCB norms (51-micron LLDPE). - Target: **25% reduction in CO₂**, **40% cut in water use by 2025** (baseline FY18–19). - **Circular Economy Initiatives**: - Installed **depolymerization unit** to convert nylon waste into caprolactam and green polymer. - Recycled 1,329 MT of caprolactam in FY25 (up from 138 MT earlier). - Successfully shipped commercial **recycled NTCF** to Apollo Tyres (tyre with 75% recycled content). - ~52% of GRS-certified recycled nylon products exported. - **Digital Transformation**: - AI-powered **vision analytics system** in dipping section for real-time defect detection. - Automated monitoring of dryer parameters via real-time dashboards. - Improves quality consistency and reduces manual intervention. --- ### **Strategic Initiatives & Growth Drivers (2023–2025)** | Initiative | Details | |---------|--------| | **Capacity Expansion** | ₹332 crore capex approved (Dec 2023):<br>– ₹309 crore: Modernize plant & increase tyre reinforcement capacity by ~30%<br>– ₹23 crore: Expand draw texturing & mother yarn capacity | | **PTCF Investment** | ₹46.63 crore spent on spinning capacity at Pune plant; aims to capture domestic and export markets | | **Energy Transition** | Launched **10.5 MW wind-solar hybrid captive power project** (via SPV ABReLCEL). To save ₹15 crore/year in power costs upon completion (Q4 FY23). | | **Process Optimization** | Shifted from two-step to **in-house developed one-step NFY process** — reduced energy, labor, and costs. | | **Import Substitution** | PTCF directly reduces reliance on foreign imports; supported by 22% import duty (vs. earlier 5.5%). | | **Export Strategy** | Currently exports to **7–9 countries** (Europe, Middle East, Southeast Asia, USA), contributing **2.83%–4.25%** of turnover. Focused on green/sustainable products. | --- ### **Leadership & Governance** - **Mr. Suresh Sodani (MD)**: Over 30 years of experience in finance and manufacturing (ex-Grasim Industries). - Key leadership achievements: - Pioneered entry into PTCF - Led capacity expansions and digital transformation - Focused on modernization, safety, renewable energy - Executed strategic exit from non-viable product lines --- ### **Challenges** - **Competition**: Pressure from **low-priced Chinese imports**, especially in commodity NFY. - **Volatility**: Crude oil, gas, and raw material price fluctuations impacting margins. - **Market Shifts**: Gradual transition from bias to radial tyres; need to stay ahead in PTCF and future **steel cord segment** (under evaluation).