### **Overview** Rishi Techtex Ltd., incorporated in 1984 and headquartered in Daman with manufacturing units in **Daman (Dadra and Nagar Haveli and Daman and Diu)** and **Vapi, Gujarat**, is a leading Indian manufacturer of technical textiles. The company specializes in **woven and knitted polypropylene (PP) and high-density polyethylene (HDPE) products**, serving global markets across agriculture, construction, industrial safety, packaging, and infrastructure sectors. A recognized **Star Export House** by the Directorate General of Foreign Trade (DGFT), Rishi Techtex holds **ISO 9001:2015 certification** and has BIS approval for its agro-nets, reinforcing quality, compliance, and market credibility. --- ### **Business Segments & Manufacturing Divisions** Rishi Techtex operates two core production divisions: #### **1. Woven Division (Capacity: 5,000 MTPA)** - **Key Segments**: - **Packtech**: Woven sacks for cement, paints, petrochemicals, fertilizers, seeds, and grains. - **Protech**: Fire-retardant and safety nets for construction, industrial, defense, and event management sectors. - **Buildtech & Agro-Infrastructure**: Tarpaulins, weed mats, ground covers for horticulture and civil engineering. - **Recent Developments (FY25)**: - Expanded client base to include **Aditya Birla Paints**, alongside long-term anchor clients like **Asian Paints**. - Strengthened supply relationships with both regional and national clients in **paints, cement, and agrochemicals**. - Installed two new **automated sack manufacturing lines**, improving throughput, reducing manual labor, and enhancing quality consistency. - Scaled monthly sack production toward **34 lakh bags**, up from 26 lakh, aiming to expand capacity and reduce client concentration risk. - Added product lines like **tarpaulins, weed mats, and ground covers**, entering new agro-infrastructure and horticulture markets. - **Strategic Shifts**: - Transitioning focus from low-margin cement to higher-value **paints and specialty industrial packaging** due to better profitability. - Exploring in-house **BOPP lamination** to support premium printed bags and reduce reliance on outsourcing. #### **2. Knitted Division (Capacity: 3,000 MTPA)** - **Key Segments**: - **Agrotech**: Shade nets, anti-hail nets, bird nets, crop covers, mulch mats. - **Buildtech**: Scaffolding nets, construction coverings, architectural membranes, acoustic fabrics. - **Recent Developments (FY25)**: - A key **growth driver**, driven by product innovation, export excellence, and expanded product portfolio. - State-of-the-art Raschel knitting facility capable of producing shade nets from **20 GSM to 400 GSM** in all configurations (Tape x Tape, Tape x Mono, Mono x Mono). - Launched high-value new products: - **Aluminet** (reflective shade net) - **Anti-Hail Nets** - **Fire-Retardant (FR) Nets** - **Cooling Shade Net** (blocks infrared rays, reduces temperatures by up to 30°C) - **Flat Mono Net** (superior cooling and shade vs. traditional cylindrical nets) - Achieved **1.32 million sq. mts in combined exports** for Aluminet, Anti-Hail, and FR nets; **4.95 million sq. mts** for Bird Nets and Crop Covers. - Developed **onion-specific shade net prototype** for protected cultivation. --- ### **Capacity & Infrastructure** - **Combined Manufacturing Capacity**: **8,000 MTPA** (5,000 from Woven, 3,000 from Knitted). - Total historical capacity: **12,300 MT/year** includes granules, sacks, and specialized fabrics. - Facilities feature: - **High-speed knitting machines (600 RPM)** – double industry standard – installed in Daman. - **Single-stage reprocess plant** (150 kg/hour output), improving recycling efficiency and reducing labor costs. - **Monolayer blown film plant** (270 kg/hour) enhancing film quality for knitting. - Full **automation in baglines** and increasing mechanization in knitting and quality control processes. --- ### **Financial Performance & Strategy** - **FY25 Export Performance**: - Exported over **39.4 million square meters** of technical and shade nets to **11 countries**, including Middle East, UK, USA, Guatemala, Netherlands, and UAE. - **Exports grew 19.3% YoY (by weight: 560.60 MT to 668.62 MT)**, surface area by 9.74%, and export revenues by **13.7% to ₹1,468.88 lakhs**. - New institutional buyers added in **Ireland and USA**. - **Debt & Financial Position (FY25)**: - Improved **debt-equity ratio from 0.96** (pre-FY25). - Net worth increased to **₹3,414.5 lakhs**. - Stable **interest coverage ratio of 1.86**. - Moving toward self-sustained growth via **internal accruals**, minimizing external debt dependency. - **Profitability Outlook**: - Targeting **4% net profit margin (near-term)** and **6% long-term**. - Aiming to restore pre-pandemic profit levels through operational efficiency, product premiumization, and capital discipline. --- ### **Strategic Priorities for FY26** 1. **Market Expansion & Diversification**: - Broaden **geographic reach** in Europe, Americas, and Asia-Pacific. - Expand **customer base** across new industries (food processing, specialty agriculture, infrastructure). - Strengthen **supplier networks** to reduce raw material risk. 2. **Direct-to-Customer (D2C) Model**: - Launch **D2C in Agrotech and Buildtech** to improve customer engagement, pricing, and margin realization. - Develop **retail-ready net variants** for home and small-farm use. 3. **Product Mix & Innovation**: - Shift toward **higher-value products**: fire-retardant nets, anti-hail nets, customized industrial packaging. - Invest in R&D for **science-driven, 'Made in India'** technical textiles (e.g., fog catcher nets, onion-specific shade nets). - Focus on **product premiumization** with enhanced durability (new material with 40% greater strength, enabling 3-year guarantee). 4. **Localization & Cost Efficiency**: - Source **Indian-made machinery** to reduce maintenance time and capital costs. - Leverage **customs duty benefits** under government schemes for imported technical textile machinery. - Increase use of **recycled material** (currently 15% of input volume) without performance compromise. 5. **Operational Excellence**: - Pursue **zero-defect manufacturing** through automation and digital monitoring. - Upgrade Vapi plant (beam process over creel) to support smaller orders and reduce waste. - Digitize backend operations for faster cost-efficiency tracking. --- ### **Technology, Sustainability & Innovation** - **Automation & Technology**: - Fully automated bagging and printing lines. - ERP system for real-time production and quality monitoring. - Strategic outsourcing (e.g., **BOPP printing via specialist partner**) to maintain margins without capex. - **R&D Focus**: - Develop **high-performance materials** with better **UV resistance**, **tensile strength**, and durability. - Innovate for **regulated markets** (EU, Middle East) requiring compliance with environmental and safety standards. - **Sustainability Challenges**: - Faces pressure due to **plastic reliance** amid rising environmental regulations. - EU **Carbon Border Adjustment Mechanism (CBAM)** increases export costs, prompting need for cleaner production shifts. - Invested in internal **reprocessing plants** and recycled content to improve ESG profile. --- ### **Government & Industry Tailwinds** - Benefits from multiple national initiatives: - **National Technical Textiles Mission (NTTM)** – mandates technical textile usage across sectors. - **Atmanirbhar Bharat** – promotes domestic manufacturing, reduces import competition. - **Agriculture Infrastructure Fund (AIF)** – boosts demand for shade nets, cold storage, and protective covers. - **One Nation, One Market** policy – enhances domestic distribution efficiency. - Active in government tenders: - Supplied **143,850 sq. m. BIS Type-II shade net** to **Orissa Government**. - Empaneled vendor for **Anti-Hail Nets in Himachal Pradesh**. - Partnering with **BARC** on polyhouse projects. --- ### **Leadership & Organizational Development** - Transitioning leadership to a **younger, technically proficient, and digitally fluent generation** to ensure long-term sustainability. - Investing in **upskilling** of machine operators, quality control, and export compliance teams. - Building talent pipeline with collaborations with **agricultural universities** (e.g., Krishi Vigyan Kendras in Maharashtra). --- ### **Notable Clients & Global Recognition** - **Packtech**: Asian Paints, Aditya Birla Paints, tile adhesive and wall putty brands. - **Agrotech**: Jain Irrigation, BARC. - **Global Events**: Supplied fire-retardant nets to **Wimbledon**, **Ryder Cup (Rome)**, **Italian Open**, **London Horse Show**, and **Goodwood Motor Circuit**—reinforcing global quality reputation. --- ### **Export Markets & Opportunities** - **Key Regions**: Middle East, Europe (UK, Ireland, Italy), USA, Africa, South Africa, Guatemala, Australia. - **Growth Models**: - **Contract manufacturing** with South African partner (private label). - Direct exports of high-durability, EU-standard compliant nets. - Exports accounted for **~27% of revenue in FY20**, with plans to **increase export share** as global recovery continues.