Indian Acrylics Ltd is a specialist manufacturer that turns imported crude-oil derivatives into acrylic fibre and then spins that fibre into ready-to-use dyed yarn - a two-stage industrial process under one roof in Punjab. The company was founded in 1986 by its current Managing Director, Shri Rajinder Kumar Garg, and began production in 1993, building a business that now sells to textile mills and knitted-fabric makers across India and export markets. Its recurring approach is to absorb raw-material shocks by moving closer to the end customer - first by adding yarn spinning to its fibre plant, then by pushing into high-value dyed yarns that competitors find harder to copy, all supported by an in-house R&D centre registered with the Government of India. # Business segments Two manufacturing stages of the same value chain - fibre first, then yarn - where the fibre plant supplies both external customers and the company’s own spinning operation. ## 1. Acrylic fibre: the industrial base that feeds everything else **A continuous-process plant that imports its sole raw material, acrylonitrile, and produces the staple fibre, tow and tops that go into winter clothing, school uniforms and knitted fabrics - while fighting a running battle against dumped Chinese imports.** - **Entirely dependent on imported raw material** - the key input is acrylonitrile (ACN), a crude-oil derivative with no local producers in India, so the company’s input costs swing with global oil prices and propylene demand. - **Runs as a continuous-process plant** - the Sangrur facility operates round the clock, which is why it qualifies for continuous-process depreciation rates; energy is the other big input, with the plant consuming grid electricity (488 lakh units in FY25 at ₹7.63 per unit) and rice husk (43,203 MT) for process steam. - **Production swings with demand and import pressure** - annual fibre output has ranged from 36,921 MT in FY23 down to 16,592 MT in FY25, with the plant occasionally taken offline for maintenance or demand slowdowns, including a COVID shutdown in 2020 and a maintenance-plus-low-demand closure in 2021. - **Fights dumped imports through trade remedies** - the company, through the Forum of Acrylic Fibre Manufacturers, has pursued anti-dumping duties against China, Thailand, Peru, Belarus and the EU, with a fresh investigation initiated by the DGTR in mid-2024 covering Thailand, China and Peru, and hearings held in early 2025. - **Global capacity is shrinking, which helps survivors** - Mitsubishi Rayon Japan, Taiwan’s Tong Hua, and Europe’s largest producer Dralon of Germany (1.88 lakh MT annual capacity) have all permanently closed their acrylic fibre plants since 2021, leaving fewer competitors worldwide. ## 2. Acrylic yarn: the downstream move that captures more value **A 10,000-spindle spinning mill that takes the company’s own fibre and converts it into dyed yarn on cones - a product sold straight to knitted-fabric makers, where the company claims a leadership position.** - **Built in two phases, right next to the fibre plant** - 6,500 spindles with dyeing facilities started in June 2019, and the remaining 3,500 spindles followed in March 2020, creating an integrated site where fibre moves directly into spinning without transport costs. - **Focuses on ready-to-use dyed yarn** - instead of selling plain yarn that customers must dye themselves, the company delivers colour-matched yarn on cones, which management calls a “leadership position” and which commands higher margins than commodity fibre. - **Serves knitted-fabric producers at home and abroad** - domestic customers make school uniforms and winter garments, while export markets span Africa, South America, Europe and Asia, with yarn export volumes reaching 1,188 MT in FY22 before settling at 1,400 MT in FY25. - **R&D is aimed at new blends and specialty yarns** - the in-house lab develops varieties of blended acrylic yarns and specialty products for new end-uses, which have been well accepted in both domestic and export markets, helping the company differentiate from plain-vanilla imports. - **Protected by the same trade barriers as fibre** - government measures like minimum import prices on knitted fabrics and a revised tariff of “20% or ₹115 per kg, whichever is higher” on Chinese knitted goods shield domestic yarn demand from being undercut by finished imports. # Group structure and partners **A family-promoted listed company with a dormant European sales subsidiary and a state development corporation on its board - no joint ventures, no associates.** - The company is listed on BSE and is part of a promoter group led by the Garg family, which also controls Steel Strips Wheels Ltd, SAB Industries Ltd, and several other industrial and financial entities. - It has one wholly owned subsidiary, Carlit Trading Europe S.L.U in Spain, originally set up to sell products in Europe, but the subsidiary suspended operations in September 2021 due to losses and high energy costs and now exists as an inactive company under Spanish law. - Punjab State Industrial Development Corporation (PSIDC) has nominee directors on the board; as of May 2025, Smt. Surabhi Malik (IAS), Managing Director of PSIDC, was appointed Nominee Director and Chairperson. - The Board of 11 directors includes the 81-year-old founder-Managing Director Shri Rajinder Kumar Garg (over 55 years in the business), his son Shri Dheeraj Garg as Additional Managing Director, and six independent directors.