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Organic Growth using multiple approaches as success mantra for long term business success and sustainability

    Saranya Spinning Mills (P) Ltd. based out of Ponneri, Namakkal is the story of vision, organic growth, incremental expansion, backward as well as forward integration using multiple growth strategies. The company has demonstrated growth with sustainability, best practices in 5S and has become a model company in clean and neat work environment. Using cutting edge technology, the mill now has the capacity of manufacturing 600 tons of viscose yarn and 2.6 million meters fabric per month in premium markets. One of the niche supplier of Vortex yarn in India, the entry into made ups has helped establish its business with entities across the globe.

    Saranya Spinning Mills started in 1997 as a small company and is now a reputed firm amongst 1500 other spinning mills in the state with improved of capacity of 25,000 spindles, 2 sets of sizing and 54 weaving machines. How this mill continued a sustainable organic growth to evolve as a premium supplier of viscose yarn and a varieties of fabrics is a lesson for many entrepreneurs.

    Three growth strategies that the Saranya Mills employed are:

    Doing more of the Same: Expansion

    Consistently expanding from the inception with right technology investments and adding new products helped organic growth of the organization.

    Link Coner

    Doing new things: New products

    The company started with cotton spinning and started viscose products in 2016. Eventually the company explored the opportunity of open end spinning, thus making use of the waste material to create products such as bedding materials. The company is now exploring air jet spinning technology that will help in further optimization of the resources. On the other hand, the company has also developed recycled viscose fabrics and is one of the major suppliers for a leading brand for the same.

    Doing the same things better: Better performance

    What else helped the company grow from strength to strength,? Mr Ashok suggests that a mixed approach of technology, process improvement methodologies (using Japanese methodology for neat and clean and organized workplace such as 5S) as well as using best human resource practices, implementing SA 8000 and quality certifications. Productivity optimization using technology involved a shift from ring spinning based to vortex spinning.

    Vortex Spinning machine

    While it started in 2009, the company won the 5S Model Company Award in 2015 from ABK AOTS. More than 100 factories have so far visited this factory for its 5S work ethic. The impact of 5S is multi-fold, not only there is standardization and self-discipline, even the work force attrition is reduced as there is pride amongst those who maintain.

    Incidentally, these three strategies align with the strategies outlined in a McKinsey research survey conducted on more than 1000 entrepreneurs. In that survey, 35% of the respondents suggested that they use multiple strategies for successful organic growth.

    Management with key employees

    Not only the company has focused on growth, it has achieved growth while maintaining highest standards for multiple strands of Sustainability. While GOTS and OEKO tex certification reflects its commitment for environment, SA 8000 and 5 Star rating for Women’s code of conduct from TUV Rheinland reflects the social sustainability of the firm. The company has 60% of female workforce and 50% of the supervisors are also women, which is an exceptional number in the industry. Best in class facilities such as hostels and nutritious nurturing food for all employees is well-known in the industry circles.

    Happy employees deliver better outcomes

    Greenhouse gas emissions (GHG) or in other words the low carbon strategy for the organization is to be as far as possible renewable (80% from renewables), be energy efficient and also explore sustainable raw materials. One of the products Livaeco which has high traceability is sourced from sustainable forests. At the same time, rain water harvesting, storage, reuse recycle and reduce is employed at the premises, while community water resources near the vicinity of the firm were also protected by the company at an investment of 75 Lakhs.

    Mr Ashok spoke with resplendent energy and excitement about rejuvenating a small water pond near the factory to enhance water level in the area as a social welfare measure. Pond bunds and deepening with a weir and a bridge enhanced the storage capacity to 2 lakh KL of water. This pond recharges around 20 wells and 100 bore wells nearby and fulfils the water irrigation of 1000 acres of land.

    Managing Director Mr Ashok Kumar P

    What about future plans? Well, the mill management is planning to plant 2000 palm trees on the pond bund as a green initiative, Also planning to use to litters of poultry farm from its sister concern to generate bio gas. While using this in boilers, it will help to save lakhs of trees per annum, that’s in addition to air jet spinning that will begin in April 2021. The vision of the company is to be the most trusted and sustainable supplier of yarn, fabric and made-ups for global brands.

    Saranya Spinning Mill is a fully backward and forward integrated company with a wide variety of yarn which include micro modal, antimicrobial, viscose and livaeco, and also produces plain, poplin, viscose and other fabrics and made-ups such as pillow covers, duvet covers, comforters and mattress pads.

    Written By: Dr Shashi K. SAGE Sustainability