Jasch Industries is a synthetic-leather maker that bet on polyurethane (PU) when the rest of India’s industry stayed with PVC - a technical choice that made it the country’s only significant manufacturer of PU synthetic leather and the PU resin that goes into it. The company was founded in 1985 by mechanical engineer Shri Jai Kishan Garg and has since passed to the next two generations of the family, who now run the coated-fabrics and resin operations from a factory in Sonipat, Haryana. Its recurring approach has been to upgrade technology through foreign partnerships, integrate backward into its own key raw material, and steadily spread its customer base beyond footwear into cars, furniture and sportswear - a formula it is now replicating at a second plant under construction. # Business segments Two engines, one raw-material backbone - a synthetic-leather business split by chemistry into PU and PVC, each serving different price points and end-uses, and a PU-resin operation that feeds the PU side while selling surplus to outside buyers. ## 1. PU coated fabrics and PU resin: the high-value engine the company was built around **PU coated fabrics are lighter and command higher value than PVC, and the company makes its own PU resin in-house - a backward-integration advantage that few Indian competitors can match.** - **Backward integration is the moat** - the company manufactures PU resin, the main raw material for PU coated fabrics, which management credits for its ability to withstand competition from cheaper Chinese imports and domestic rivals. - **Capacity built in steps, paid from cash flows** - installed PU coated-fabric capacity was raised from 24 lakh metres to 30 lakh metres per annum in January 2022, and the Board approved a further addition of 10 lakh metres to reach 40 lakh metres within one-two months from May 2026, funded entirely through internal accruals at an investment of Rs. 141 lakh. - **Resin is both a raw material and a product** - surplus PU resin beyond captive consumption is sold to outside parties for adhesive and coating applications, and a new lamination adhesive was launched in November 2024 within existing capacity at zero additional investment. - **Technology comes from abroad, adapted in-house** - a royalty-based technical collaboration with a foreign company supports development of high-end PU resins and PU tapes for fastener and seam-tape applications, while the company’s own R&D modifies products for Indian tropical conditions. - **Footwear dominates, but cars are the growth story** - the business is “mostly used” in footwear, yet diversification has pushed other end-uses to about 40% of the business, and the company has begun supplying coated fabrics for Hyundai/Kia car interiors after a car maker that previously imported such material approved its samples. ## 2. PVC coated fabrics: the volume engine that runs on in-house ingenuity **PVC coated fabrics are the heavier, lower-value side of the business, but the company has expanded capacity without buying new ovens - by making existing ones run faster.** - **More output from the same machines** - PVC coated-fabric capacity was increased from 78 lakh metres to 94 lakh metres per annum in April 2021 through in-house innovations that improved drying speed in existing ovens without compromising quality. - **A different chemistry, a different cost structure** - PVC and PU segments use different raw materials, and PVC products are positioned as the heavier, less-premium alternative to PU coated fabrics. - **Outside expertise plugged gaps** - the company engaged experienced professionals as consultants to advise on making better-quality PVC products with lower breakdown and rejection rates. - **Volume dwarfs PU, but value does not** - the PVC segment produced 71.39 lakh metres in FY25, more than three times the PU segment’s 22.56 lakh metres, yet contributed a smaller share of total business revenue at 44.41%. # Group structure and partners **A family-run standalone manufacturer that shed its only non-textile business through a demerger, leaving a clean pure-play coated-fabrics and resins company with no subsidiaries.** - **No subsidiaries, no joint ventures** - as of FY25 the company operates as a single entity with no consolidated accounts, a structure achieved after the demerger clean-up was completed in FY24. - **Promoters hold just over half** - the promoter family owns 57.63% of the company, with the next generation - Ramnik Garg, Navneet Garg and Rushil Garg - serving as executive directors running the coated-fabrics and resin segments. - **Two foreign technology partners** - a successful collaboration with Korea’s Duksung Company Ltd updated technology and developed new products, while a technical know-how agreement with a Japanese company covers developing new products.