### **Company Overview** Sportking India Ltd., incorporated in **February 1989**, is one of India’s leading integrated textile manufacturers specializing in high-quality **cotton, synthetic, and blended yarns (20s to 46s counts)**. The company operates **three advanced manufacturing facilities** in Ludhiana and Bathinda, Punjab, equipped with state-of-the-art machinery. Known for innovation and quality, Sportking has established itself as a **global ambassador of Indian textile manufacturing**, exporting to over **30 countries** across Asia, Africa, Europe, and Latin America. With a total **spindle capacity of 3.79 lakh** and a **daily dyeing capacity of 20 tonnes**, Sportking produces **value-added yarns** such as compact, contamination-free, sustainable, and multi-twist cotton yarns—products that command premium pricing. It markets its premium offerings under two distinct brands: **Crystal (imported cotton)** and **Sublime (select Indian cotton)**. --- ### **Leadership & Governance** - **Mr. Munish Avasthi**, Managing Director since 1999, brings over **three decades of industry experience** and is a recognized pioneer in the spinning sector. Under his leadership, Sportking has achieved significant operational and financial growth, earning him the **First Generation Entrepreneur Award (2018)** from the Cotton Association of India. - **Mr. Chetan Rupal** contributes key expertise in fabric dyeing, color matching, and quality control, enhancing the company’s ability to deliver customized, pre-dyed, high-quality yarns. The management team emphasizes long-term strategic planning, vertical integration, and sustainable operations. --- ### **Growth Strategy & Expansion Plans** #### **Greenfield Expansion in Odisha (Nov 2025 Announcement)** - **Project:** Greenfield plant to add **1.50 lakh spindles**, increasing total spinning capacity by **~40% (from 3.79 lakh to 5.29 lakh spindles)**. - **Investment:** **INR 1,000 crores**, funded through **term loans and internal accruals**. - **Timeline:** Expected completion within **12–15 months**. - **Strategic Benefits:** - Enhances **geographic diversification** and access to eastern India and international markets. - Proximity to **port infrastructure** supports export logistics. - Strengthens pan-India presence and mitigates regional concentration risk. This follows a series of prior capacity expansions: - **2022–2023:** Added 103,872 spindles (35% increase), bringing capacity to 378,576 spindles. - **Phased expansions in Bathinda** (Punjab), including investments in compact cotton and polyester-cotton yarns. #### **Forward Integration via Merger (Nov 2024)** - Merged with **Marvel Dyers** (fabric dyeing, printing, finishing) and **Sobhagia Sales** (ready-made garments). - Aims to pursue **higher-margin opportunities** along the textile value chain. - Garment production capacity currently at **20 lakh pieces/year**, expected to **double** with an incremental investment of **INR 10–20 crores**. - Garment unit historically generates **15–17% EBITDA margin**, significantly higher than dyeing (8–9%). - Expected to improve **overall group EBITDA margin by 1–2%**, although initial utilization of integrated capacity will be limited to **10–15%**. --- ### **Market & Customer Strategy** Sportking targets **quality-conscious domestic and international brands**, offering tailor-made, premium yarn solutions. It serves both **woven and knitted fabric** manufacturers for summer and winter apparel. - **Sales Channels:** Distributes through a **dedicated network of dealers and agents** in domestic and international markets, supported by a **centralized marketing team** at corporate headquarters. - **Customer-Centric Focus:** Emphasizes **quality, competitive pricing, on-time delivery, and responsive after-sales service**. - **Innovation-Driven:** Product development is aligned with evolving global customer needs, including sustainability and contamination-free yarns. --- ### **Financial & Revenue Profile** - **Revenue Mix (Jan 2024):** - 60%: 100% Cotton Yarn - 35%: Polyester-Cotton Blended - 5%: Synthetic/Waste Yarn - **Geographic Reach:** - **Domestic (52% in FY20)** and **Exports (~48–50%)** - Top export markets: **Bangladesh (largest), China, Egypt, US, Sri Lanka, Vietnam, and EU** - **Export Revenue:** USD 120–150 million annually - **Operating Income:** Exceeded **INR 2,413 crores in FY24** - **Working Capital Intensive:** Due to seasonal cotton inventory buildup; gross current assets equivalent to ~165 days of operations (as of Mar 2022) --- ### **Sustainability & Cost Optimization** - **Solar Power Investments:** - Commissioned **10 MW rooftop solar** project. - Completed an additional **15 MW solar project in 2023–24**. - Investing in **SPV for long-term solar power supply** to reduce energy costs and enhance sustainability. - **Advanced Manufacturing:** Uses **direct transmission in LR-60 Ring Frames** (since 2020), reducing power consumption by 2–3%, lowering wear & tear, and improving fire safety. - **Cotton Procurement:** Dedicated team selects high-quality, sustainable cotton from growing regions; post-expansion, annual consumption will reach **600,000 bales**, making Sportking one of India’s **largest cotton buyers** with enhanced bargaining power.