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Super Spinning plans JV with Korean major

Sudha Swaminathan - Coimbatore

Super Spinning Mills, one of the fast growing yarn manufacturing company from Coimbatore is planning a joint venture with a Korean textile major in areas such as yarn processing and garmenting.

The individual contribution of the parties towards capital investment and other management control aspects are being deliberated. Disclosing this to Express Textile, Mr K R Seethapathy, COO, said, “We already have business relationship with the Korean firm. Our partners expressed interest to participate in yarn processing, our next project in forward integration. We have successfully completed two rounds of talks and we will be negotiating soon.” The joint venture is strategic to Super Spinning, which has charted forward integration plans to cover the entire gamut of the textile industry. The Korean company is one of the biggest trading partner, absorbing 30 per cent of the total yarn exports of Super Spinning.

The joint venture will also have a buy-back clause, wherein the Korean partner will import the processed yarn. “We are not looking at 100 per cent buy-back arrangement, but will be one,” said Mr Seethapathy.

Super Spinning is on job to establish a yarn (cheese) processing unit. It has identified the land at the SIPCOT Industrial Estate, Erode. The unit with an investment of Rs 6 crore will have a capacity to process 2 tonnes of yarn per day and later, will be expanded to 4 tonnes per day. The processing machineries will be imported from Europe. The unit will be designed to facilitate fabric processing, which is also on cards. Both the parties are also intending to extend the partnership into garmenting as well, which would take shape depending on the success of the yarn processing.

Super Spinning will be expanding the capacity of the garment unit from 1000 to 4000 pieces per day. It is exporting garments to Japan, Korea, Italy, Spain, Switzerland, Portugal.