Century Enka: Force For Good
FY24 saw capacity expansions for Century Enka in nylon and polyester segments, along with investments in modernisation, renewable energy, and safety initiatives
Century Enka (CEL), established in 1965 through a collaboration between B.K. Birla and AKZO Nobel of the Netherlands, has evolved into a respected player in high-quality synthetic textiles. Known for nylon tyre cord fabric (NTCF) used in bias tyres and nylon filament yarn (NFY) favoured by the apparel industry, CEL, a member of the Aditya Birla Group, upholds its reputation for quality, innovation, and customer satisfaction.
In the growing synthetic yarn market, projected to expand at a CAGR of 7.39 per cent to USD 85.07 billion by 2025, CEL sees significant opportunities in India’s nylon segment. “We are the leading producers of nylon filament yarn and nylon tyre cord fabric in India with approximately 25 per cent and 23 per cent domestic market share, respectively,” said Suresh Sodani, MD, highlighting CEL’s two advanced facilities in Pune and Bharuch, which together offer a production capacity of around 92,000 MTPA. Despite competition from China and industry-wide shifts to radial tyres using steel wires, CEL anticipates steady demand for its products.
During FY24, CEL embarked on a journey of growth and transformation, marking significant advancements across its production landscape. The expansion project to enhance nylon tyre cord fabric and draw texturising yarn capacity was commissioned, signaling CEL's commitment to fortify its stronghold in the synthetic textile industry. Furthermore, the addition of polyester tyre cord fabric (PTCF) and mother yarn capacities became a reality, bringing new potential for diversified growth and positioning CEL to meet evolving market demands.
Headwinds Galore
CEL’s FY24 performance was challenged by several headwinds. Intense competition from China, where a downturn in nylon demand and margins led to heavy dumping at low prices, pressured margins in India. Higher variable costs, especially steep electricity rates, further strained profitability. Additionally, NTCF demand softened due to reduced exports and lower farm tyre demand stemming from subpar monsoon conditions. These factors collectively impacted earnings, with EBITDA declining 28 per cent to Rs 116 crore in FY24, down from Rs 161 crore in FY23. Nonetheless, CEL demonstrated resilience, recording revenue from operations at Rs 1,744 crore and achieving a net profit of Rs 42.8 crore in FY24.
