Reliance Spinning Mills, the largest spinning mill in the country – has brought a 9.2 MW solar plant into operation at its factory in Khanar of Sunsari district.

"Solar plant of 9.2 MW installed capacity developed and brought into operation recently, it is the largest individual solar plant," said the company.

This instalment of alternative energy sources is expected to support the manufacturing facility that has a need for about 13-14 MW of power a day. Despite multiple claims from the Nepal Electricity Authority (NEA) – the energy monopoly in the country, industries are still facing power outages.

The project is developed by Prozeal Green Energy Limited, a joint venture initiative of Golyan Power Limited and Prozeal Green Energy, India. Golyan Power is the subsidiary of Golyan Group which also partners with Reliance Spinning Mills.

According to the company, electricity supply is one of the major challenges to it. Despite receiving approval to consume 14 MW of power from the NEA, the industry was consuming only 2.5 MW daily while the rest of the energy was generated using diesel and furnace oil which sent the production costs up.

Established in 1994, the industry is divided into two blocks: 'A' in Khanar of Itahari Municipality-12 Sunsari and 'B' in Duhabi Municipality-4.

The industry employs more than 4,000 workers, of whom 1,550 are women. The company has been training and developing skilled manpower internally to meet its workforce requirements. Female workers can have a hostel facility that has good amenities and security provisions.

The industry imports raw materials (fibres) from countries such as India, Japan, Thailand, South Korea, and others to manufacture cotton, synthetic, and acrylic yarn.

Currently, the industry's annual production capacity stands at 48,960 metric tonnes. Of the total production, 20–25 per cent is consumed domestically, while 75–80 per cent is exported to countries including India, Turkey, Dubai, and Malaysia. The company is also preparing to export to Bangladesh.

"The company has grown from a modest installed capacity of 9,000 spindles in 1996 to the present installed capacity of a total 127,824 spindles making the factory capable of producing 48,960 tonnes production annually (136 tonnes a day) including production from Othe pen End plant," informed Reliance.

A Research and Development division, which operates from a modern quality control cell, ensures quality standards in the products of the company. IT claimed that the R&D laboratory has the latest equipment to test the yarn as per international quality standards.

Profits up

Reliance has also witnessed a notable improvement in its Earnings Per Share (EPS). In the previous fiscal year 2023/24, the company's EPS had declined to Rs. 2.95. However, in the second quarter of the current fiscal year 2024/25, it has surged to Rs. 22.19.

The mills recorded a net profit of Rs. 180 million in the second quarter of the current fiscal year 2024/25, marking a 274 per cent (3.74 times) increase compared to the same period last year.

Although the company's overall revenue has slightly declined, a reduction in sales, administrative, and other operational expenses has contributed to this remarkable growth in profitability, it said.

The company exported 25,902 tonnes of yarn worth Rs. 6.74 billion in 2023/24 which is Rs. 242 million up from that of FY 2022/23. Five years ago, the company exported 16,070 tonnes of yarn worth about 4.54 billion.

In 2022/23, exports from Reliance hada 4.61 per cent share in the total exports from Nepal.

By TRN Online