Cheslind Textiles Limited

(1)

27 is headquartered at Bangalore (Karnataka).

Cheslind operates 64,000 spindles and its production amounts to approximately 5,500 tonnes of cotton yarn per year.

The main export markets of Cheslind for cotton yarn are Switzerland, Austria, Italy, France, Japan, Korea,Turkey, Mauritius and Hong Kong.

It manufactures a wide range of products from Ne 24s to Ne 110s, both single and TFO doubled and gassed products from as many as six raw material mixes. Raw materials include specially selected imported varieties like US Pima, Egyptian Giza,West African and Chinese. Indigenous cottons include Shankar 6 and MCU 5. Its cotton yarn is used for hosiery as well as weaving applications, and is tailor-made to suit customers' specifications.

Cheslind offers a variety of packing configurations.

For example, single yarns are available with 1.89 kilogrammes or 1.95 kilogrammes per cone, double yarns are available with 1.72 kilogrammes or 1.89 kilogrammes per cone, while gassed products are standardised at 1.72 kilogrammes per cone. For Japanese customers, cone weight is 945 grams based on specific requirements.

The company also offers pallet packing for European destinations.

Zieglertex, a leading textile company in Switzerland, is involved in the business of apparel and home textiles, as well as yarns and fabrics

Global Overview of Zieglertex

Zieglertex, a Swiss textile company of international repute, is represented in India by Cheslind Textiles.

Cheslind Textiles is involved in the manufacture of cotton yarn (accounting for over 90 per cent

|of its revenue). Zieglertex has a technical and marketing tie-up with Cheslind, which was entered into in the year 1994, and later also invested in a small stake in the company. Currently Zieglertex also has a 2.09 per cent stake in Cheslind.

The current activities of Zieglertex include customised apparel and home textiles as well as development and distribution of its own brand of products. It also sells and distributes raw materials and semi-finished products, i.e., yarns and fabrics.

Zieglertex in India

Zieglertex is represented in India by Cheslind Textiles Limited, which has a state-of-the-art manufacturing facility at Bagalur in Hosur Taluk of Tamil Nadu.This facility is a 100 per cent export oriented unit (EOU).The company

Company Mode of presence in India Year of entry Key business

Cheslind Textiles Technical & marketing tie-up 1994 Cotton yarn

Limited

Swiss_company in India_Book fin.qxd 3/17/07 5:41 PM Page 27

(2)

28

Highly skilled people

Cheslind is professionally managed by a core group of engineers and technologists, having decades of industry experience amongst them, and backed by a team of trained professionals at all levels. Quality and reliability at Cheslind is not restricted to being equipped with latest hardware. Specially selected, groomed and trained, the professionals at Cheslind are capable of responding and adapting themselves to meet challenges.

Training

To ensure that its operatives receive the right kind of training to meet international customer standards, Cheslind has an exclusive in-house training facility complete with dormitories and trainers to mould a cohesive and efficient team.

Emphasis on quality

The fact that Cheslind has become a name synonymous with consistent product quality is mainly because of its ability to translate its passion for quality to everything that it produces.

The company has also set a unique track record for itself by winning and retaining the confidence of all its customers in Switzerland, Italy, Germany, Mauritius,Turkey, Korea, Japan and Hong Kong.

As a part of its quest for perfection, Cheslind has internalised Total Quality Management (TQM) and Total Productive Maintenance (TPM) and has been accredited ISO 9001-2000 by BVQI.

Furthermore, all Cheslind products are subject to the most stringent quality control measures at every stage from raw material to the end product. Cheslind's quality measures have also won it a certification from TESTEX, Switzerland, declaring its products free from harmful substances according to the OKO-TEX standard 100.

Equipment of international standards The technology line-up at Cheslind is impressive and is procured from international suppliers For every phase of the manufacturing process,

Cheslind has technical tie-up with several foreign players. Cheslind is implementing Total Quality Management and has been accredited with ISO 9002 by Bureau Veritas Quality International (BVQI). It also has quality certification from TESTEX, Zurich, for adherence to Öko-Tex standard 100 for exports to Switzerland and other European countries.

Besides yarn, Cheslind offers a wide range of knitted fabrics (both grey and processed), made from its yarns produced in-house. Fabrics are exported to top end customers in Italy, Germany and Japan.The fabric is of several types - single jersey, interlock and rib.

The company's turnover during in 2005-06 amounted to roughly US$ 28 million, as against US$ 30.4 million during the previous year 2004-05.

Despite a marginal decrease in the turnover, the profitability of the company has shown substantial improvement.The cash profit during 2005-06 amounted to US$ 3.07 million as against US$ 1.83 million in the previous year.

A public limited company, Cheslind has roughly 22,000 shareholders and is listed on all major stock exchanges of India. Backing its ventures are India's premier financial institutes like the IFCI, IDBI, ICICI, State Bank of India and Canara Bank.

Key Success Factors in India

Cheslind has able to achieve significantly improved performance by judicious planning of its product mix and timely procurement of raw material.

Development of new markets, with focus on value added products, including gassed yarns and super fine counts, has been a major thrust for the company.

(3)

29 of repute. Its preparatory section (including blow

room, cards and combers) is sourced from Rieter, Switzerland. Its ring spinning machinery has been procured from Lakshmi Rieter and Suessen, Germany (for elite compact yarns). Its autoconers come from Schlafhorst, Germany, and Murata, Japan.

The two-for-one twisters have been purchased from Volkmann Compact, Germany, and Gemini S, Italy.The high speed gassing machine is from Scharer Schweiter Mettler (SSM), knitting machines are from Mayer & Cie, Germany, laboratory is from Uster, humidification and air conditioning is from Luwa Switzerland, steam setting is from Xorella, Switzerland, and its power plant comes from Wartsila, Finland.

Future Plans

Textile is one of India's oldest industries and has a formidable presence in the Indian economy as it contributes to about 14 per cent of manufacturing value-addition, accounts for around one-third of its gross export earnings and provides gainful employment to millions of people.The company is in the process of implementing expansion in capacity from 54,432 spindles to 64,512 spindles. It is also proposing to add balancing equipment resulting in higher throughput and a more balanced

portfolio of products leading to better profitability. Zieglertex's India operations

• Present in India through a technical and marketing collaboration with Cheslind textiles, mainly involved in production of cotton yarn and knitted fabric

• Cheslind, headquartered in Bangalore, has a manufacturing facility at Bagalur in Tamil Nadu, which is a 100 per cent EOU

• Operates 64,000 spindles and its production amounts to approximately 5,500 tonnes of cotton yarn per year

• Main export markets of Cheslind for cotton yarn are Switzerland, Austria, Italy, France, Japan, Korea, Turkey, Mauritius and Hong Kong