- **Betex India is a textile job-worker - it dyes and prints polyester fabric that other people own, charging a fee for the service rather than trading in cloth. Incorporated in 1987 and based in Surat, Gujarat, one of India’s largest textile hubs, the company has spent three decades refining a single, focused model: take grey fabric from merchants and garment makers, process it in-house, and return finished material without ever taking title to it. That recurring approach - stay asset-light on fabric, invest in the processing plant instead, and pass raw-material cost swings back to the customer - explains everything else about how the business works.** # Business segments A single engine - textile processing - supported by a small captive windmill that helps power the factory floor. ## 1. Dyeing and printing job-work: the factory that finishes other people’s fabric **Betex earns a processing fee on every metre of grey polyester cloth it dyes or prints, without ever owning the fabric itself - a pure service model that keeps working capital tied to chemicals and dyes, not to cloth inventory.** - **Paid by the metre, not by the garment** - revenue rises and falls with the volume of fabric processed and the per-metre realisation charged for dyeing and printing services, so the company’s fortunes track the throughput of Surat’s polyester trade rather than retail fashion cycles. - **Two units under one roof** - the company runs two processing plants, both called Sumeet Silk Mills (Unit-1 and Unit-2), at its Pandesara, Surat site, with a combined stated capacity of 55,000 thousand metres per day, or roughly 295 million metres a year. - **Raw-material risk sits with the customer** - Betex buys dyes, chemicals and other processing inputs itself, but its contracts attempt to pass raw-material price variations through to clients, protecting margins from input-cost spikes. - **R&D aimed at the factory floor, not the lab** - the company’s research effort is practical: modifying dyeing and printing machinery, tweaking process parameters to lift productivity, and installing printing machines that can handle new product concepts, all of which reduce wastage and cut energy consumption per unit processed. - **Energy is a managed cost** - electricity consumption hit 7.1 million units in FY24 at an average rate of ₹9.23 per unit, and the company runs a continuous programme of replacing inefficient equipment with LED lighting, fine-tuning transformer loads, and automating load management to improve its power factor. ## 2. Captive wind power: a hedge against the electricity bill **A 1.25 MW windmill in Kutch, Gujarat, generates power that reduces the factory’s dependence on grid electricity - a quiet cost-saver, not a separate business.** - **Wholly owned, wholly captive** - installed in 2007, the windmill sits inside the company’s own asset base and is reported within the single Textile Business segment, not as a standalone profit centre. - **Location matches the resource** - sited in Kutch, a high-wind region of Gujarat, the turbine is positioned where it can generate meaningful output for the Pandesara processing plant roughly 400 kilometres away. # Group structure and partners **A standalone Surat company with no subsidiaries, controlled by a consolidated promoter group that recently attempted - and then withdrew - a reclassification of family members to public shareholders.** - **No subsidiaries, no joint ventures** - Betex prepares only standalone financial statements and has no associate companies, making it a pure-play processing entity with no hidden group complexity. - **Promoter consolidation in 2022** - Ritesh Rajkumar Somani and Sumeet Silk Processors Private Limited bought out seven other promoter-group members in an inter-se transfer at ₹65 per share, taking their combined holding to 40.89% while the overall promoter group stake remained unchanged. - **Aborted reclassification** - in mid-2024, thirteen promoter-group members sought to be reclassified as public shareholders, the board and shareholders approved it, and an application was filed with the BSE, but by December 2024 the group withdrew the request and chose to remain classified as promoters. - **Related-party fabric flows** - the company has material transactions with several entities sharing common directors - including Ambaji Syntex, Ekta Polyfab, Meera Dyeing & Printing Mills, and Sumeet Silk Processor - and as of March 2024, over 93% of outstanding loans and advances were to promoters and related parties.