An important milestone in Sanathan Textiles’ development has been reached with the announcement of the company’s eagerly awaited Initial Public Offering (IPO). The initial public offering (IPO) consists of a 400 crore new issue and a 150 crore offer for sale (OFS) by promoters selling shareholders, for a total issue size of 550 crore. This calculated action demonstrates the company’s dedication to growing its business and enhancing its position in both local and foreign markets.
Sanathan Textiles has become a leader in the textile yarn market and is one of the few firms in India with a strong presence in the polyester, cotton, and technical textile sectors. Making use of a wide range of products, cutting-edge The business continues to establish industry standards because to its industrial prowess and steadfast dedication to sustainability. Sanathan Textiles is well-positioned to take advantage of the rising demand for textile goods worldwide and promote long-term value development for stakeholders thanks to plans for substantial capacity growth and innovation.
A Wide Range of Products
Three separate yarn business verticals are operated by Sanathan Textiles:
items made from polyester and cotton yarns, as well as yarns for industrial and technical applications. The firm has more than 45,000 stock-keeping units (SKUs) and more than 3,200 active yarn product variants as of September 30, 2024. They are able to produce a wide range of more than 14,000 yarn types and 190,000 SKUs for a variety of uses, such as protective gear, sportswear, construction, healthcare, and automobiles.
The emphasis Sanathan Textiles places on value-added goods is one of its main differentiators. In addition to cationic dyeable and speciality yarns, the firm produces dope-dyed, superfine/micro, functional, industrial, and technical yarns. These goods are known for their unique qualities and were developed via in-house research. They are tailored to satisfy particular consumer needs.
Modern Manufacturing Establishment
As of June 30, 2024, Sanathan Textiles’ fully integrated Silvassa production plant has an astounding installed capacity of 223,750 MTPA across all three yarn verticals. A continuous polymerisation factory with cutting-edge features including computer-assisted operations, temperature control, torque sensors, and computerised metering is part of the facility. This makes it possible to produce high-value, made-to-order yarn products with remarkable accuracy and flexibility.
At its Silvassa factory, the company has also installed a Zero Liquid release Solution, which ensures minimal environmental effect by preventing the release of industrial effluent into surface waterways. Sanathan Textiles uses recycled resources to make yarn items under the Sanathan Reviro brand, further demonstrating its commitment to sustainability.
Plans for expansion and strategic investments
Sanathan Textiles is in the advanced stages of establishing a greenfield manufacturing plant in Wazirabad, Punjab, to further solidify its position in the market. This plant, which spans 80 acres and is being built by its wholly-owned subsidiary, Sanathan Polycot Private Limited, will be dedicated only to the manufacture of polyester yarn. It is anticipated that this expansion would greatly improve the company’s product portfolio and manufacturing capabilities.
The business has also adopted renewable energy with considerable success. Rooftop solar installations at its Silvassa factory provide 2.35 MW of electricity as of June 30, 2024, and 0.86% of the energy used comes from renewable sources.
Possibilities for Growth in a Booming MarketThe fashion industry’s growing demand and the quick development of e-commerce platforms will propel the worldwide yarn market’s consistent expansion. A CRISIL analysis projects that the Indian textile and apparel sector would expand at a compound annual growth rate (CAGR) of 6.0% to 7.0% from Fiscal 2024 to Fiscal 2028. During this period, domestic demand is projected to expand at a faster pace of 7.0%-8.0%, while exports are anticipated to grow at 4.5%-5.5% CAGR.
Demand will be mostly driven by factors like urbanisation, growing disposable income, and the switch from cotton to synthetic fibres. Furthermore, it is anticipated that the strong expansion of the technical textiles market and the expansion of the global textile sector outside of China would significantly increase Indian exports.
Long-Term Connections with Customers
Renowned consumer brands have come to trust Sanathan Textiles because of its extensive distribution network, scope of operations, and reliable product quality. Welspun India Limited, Page Industries Limited, D’Decor Home Fabrics Private Limited, Wildcraft India Limited, Siyaram Silk Mills Limited, and SRF Limited are just a few of the prominent companies that the firm serves. These long-standing alliances highlight the business’ dedication to quality and creativity.
Sanathan Textiles is poised to solidify its position as a leader in the Indian and international textile industries with its wide range of products, state-of-the-art production capabilities, and smart development plans. An important turning point will be reached with the company’s impending IPO, which will allow it to take advantage of new growth prospects while continuing to prioritise innovation, sustainability, and customer pleasure. In addition to setting new benchmarks for the sector, Sanathan Textiles is laying the groundwork for a vibrant and sustainable textile manufacturing future.