Century Enka, leaves a mark in India's synthetic yarn sector

Century Enka Ltd. (CEL), a prominent player in India's synthetic yarn industry, has demonstrated remarkable resilience and strategic foresight in fiscal year 2023-24. Despite intense competition and evolving market dynamics, the company has not only maintained its market position but has also expanded its capabilities through strategic investments.

CEL's financial performance in FY 2023-24 was impressive, with a net profit of Rs 428 million and revenue of Rs 17,442 million. This growth was driven by strong domestic demand for Nylon Tyre Cord Fabric (NTCF) and Nylon Filament Yarn (NFY), coupled with strategic initiatives like the commissioning of a new dipping plant and the expansion of spinning capacities for Polyester High Modulus Low Shrinkage (HMLS) yarn.

The Indian tyre industry is on a growth trajectory, driven by factors such as automotive sector expansion and increasing exports of Indian tyre brands. This growth is expected to benefit CEL, as its NTCF is integral to the reinforcement of various types of tyres. While the shift towards radial tyres in Medium and Heavy Commercial Vehicles (MHCVs) is underway, the demand for Bias tyres remains strong in Light Commercial Vehicles (LCVs) and two-wheelers.

CEL's NFY, used in applications like fish twines, conveyor belts, and activewear, faced challenges due to lower rural demand. However, the company is expanding its product range to align with the growing activewear market and focusing on value-added products.

Looking ahead, CEL is well-positioned to capitalize on the growing Indian textile industry, import substitution for technical textiles, and rising demand for ethnic wear and sportswear. The company's commitment to sustainability, through investments in renewable energy and environmentally friendly practices, further strengthens its position as a leader in the synthetic yarn sector.