Textile companies, having strong thrust on recycling processes and recycled products, are in expansion mode and are arranging funds from Initial Public Offerings (IPO).
In the last few days, two such companies have entered the share market and are targeting funds for expansion.
Mumbai-based Divyadhan Recycling Industries Limited (DRIL), having its plant in Baddi, Himachal Pradesh and having operations in polyester yarn spinning and home textiles, is targeting to arrange Rs. 24.17 crore from the market. It has a total revenue of Rs. 59.12 crore on the fiscal year ending 31st March. The company, led by Pratik Gupta and Varun Gupta, will use the funds to meet capital expenditure and general corporate purposes.
Another such company is Ludhiana’s Paramount Dye Tec Ltd, a manufacturer of recycled synthetic yarn, acrylic fibre yarns, hand-knitting yarn and more. Under the leadership of Kunal Arora and Palki Arora, the company had a revenue of Rs. 23.67 crore during the last fiscal.
“Setting up additional manufacturing units is an initiative of expansion of the current business activity of the company. This will increase the capacity of the overall facility, thereby increasing production and revenue. With increase in production, the company will also aim at achieving economies of scale, thereby increasing profit margins,” the company’s Red Herring Prospectus reads.
It further adds that the company will expand its product portfolio to include yarns consisting of blends of acrylic cotton, cotton polyester, polyester viscose and acrylic suitable for heavy GSM T-shirts, shorts, polos, and lowers.
This strategic expansion will not only broaden market reach but also enhance its ability to serve a diverse range of customers, from SMEs to high-fashion multinational companies. By catering to both winter and summer apparel manufacturers, the company will mitigate the risks associated with seasonality and establish a more stable and diversified revenue base.
Parvinder Singh, Co-founder, Global Alliance For Textiles Sustainability Council and Director, Aadi Sustainability Solutions, Panipat is strongly of the view that the Indian recycling space has ample growth opportunities.
“Textile industry’s raw material demand is growing almost 6 per cent while cotton production’s growth is hardly 2-3 per cent. Similarly, there is a limited reserve for petroleum, so polyester also has a limit in the long run, so recycling is the best option,” he said and further added that India has almost triple recycling compared to other manufacturing hubs and it is a core strength of India so there are enough business opportunities in recycling but one has to have a good know-how.
