Deepak Spinners Ltd is a manufacturer that sits in the middle of the textile chain, turning raw polyester and viscose fibres into the spun yarn that becomes your bedsheets, curtains and sportswear. Founded in 1982 in Himachal Pradesh and still run by the founding Daga family across three generations, the company has built its business on a single, consistent idea: keep modernising the machinery so the yarn stays competitive, and keep bringing power generation in-house so the cost of running that machinery stays under control. # Business segments Two engines, one core - a yarn manufacturing business that is the company's entire commercial identity, supported by a captive power unit that exists to feed it cheaper energy. ## 1. Synthetic and blended yarn: the company's sole product **Deepak Spinners converts man-made fibres into yarn for other manufacturers, selling entirely to businesses across India and export markets from two factories.** - **A single product family, a thousand end-uses** - the company makes synthetic staple fibre yarn and blended yarn from polyester and viscose, which downstream mills then turn into home textiles, knitted and fitness apparel, car components and industrial fabrics. It is a pure business-to-business operation, with one customer alone regularly accounting for more than a tenth of revenue. - **Two factories, one in the hills and one on the plains** - manufacturing is concentrated at Baddi in Himachal Pradesh and Guna in Madhya Pradesh, with the company owning the freehold land, buildings and machinery at both sites. The workforce across the two locations stood at just over 3,000 people as of March 2025, a number that has been gradually trimmed from roughly 3,100 two years earlier. - **Raw materials are local, but the competition is global** - polyester and viscose fibres are sourced domestically, while specialised dyes and chemicals come from Europe. India is the world's second-largest maker of polyester staple fibre, which means supply is deep, but the company still faces higher input costs than rivals in China and Vietnam, made worse by an inverted tax structure under GST. - **An export house with a hedging habit** - the company is recognised by the Indian government as an Export House, and export demand is driven by specialised yarn segments. Because it sells overseas, it routinely uses forward currency contracts to protect itself against exchange-rate swings. - **Modernise or fall behind** - management describes plant and machinery upgrades as an ongoing policy, not a one-off project, and the machinery on the factory floor is depreciated over a 30-year useful life, reflecting long-life industrial assets. ## 2. Captive power: the factory's private energy supply **The company generates its own electricity at its Guna plant to insulate its spinning operations from grid-price shocks, using solar as its primary tool.** - **Solar built in two waves** - a 3 MW solar plant was commissioned at Guna in FY23, and a further 4 MW was added in FY25 at a cost of about Rs. 11 crore, giving the unit a structural shift towards lower-cost, predictable energy. - **Biomass tried and shelved** - a husk-fired biomass plant was also built at Guna, but generation was suspended because it became uneconomical, and the company booked an impairment loss on the asset. - **Baddi pays the grid price** - the Himachal Pradesh factory does not have captive generation and instead relies on a 66 KV grid connection that was completed and commissioned to secure supply, though the unit has been hit by steep increases in state power tariffs. # Group structure and partners **A tightly held, standalone public company with no subsidiaries, controlled by the Daga family and listed only in Mumbai.** - **Family at the centre** - the promoter group is led by Chairman and Managing Director Yashwant Kumar Daga, with founder Pradip Kumar Daga as Chairman Emeritus and Shantanu Daga representing the next generation in executive roles. Promoter entities together hold a commanding stake, with Yashwant Kumar Daga himself holding nearly 14% and family investment vehicles like Mangalam Engineering Projects and Contransys holding another 12% and 5.6% respectively. - **One listing, one share class** - the company's equity shares trade on the BSE under scrip code 514030, with 7,189,368 shares outstanding, all held in dematerialised form. - **A single, tiny associate** - the only investment outside the core business is a Rs. 1.90 lakh stake in Shivalik Solid Waste Management Limited, a non-current investment with no operational role in the yarn business. The company has no subsidiaries and has never undertaken a demerger or spin-out.