### **Overview** Rudra Ecovation Limited, formerly known as Himachal Fibres Limited, is a leading Indian enterprise in the sustainable textile and plastic recycling sector. Established in 1997 and headquartered in Ludhiana, Punjab, the company operates a 100-acre integrated manufacturing facility—one of India’s largest and most advanced rPET (recycled polyethylene terephthalate) waste recycling units. With over 3,000 employees and a strong focus on environmental sustainability, Rudra Ecovation has positioned itself as a pioneer in eco-innovative solutions, transforming post-consumer PET waste into high-performance recycled products. The company underwent a strategic rebranding in March 2024 to reflect its transformation from a traditional textile player to a leader in circular economy solutions. Its mission centers on reducing environmental impact while meeting rising global demand for sustainable materials. --- ### **Recent Developments & Strategic Initiatives** #### **Merger with Shiva Texfabs Limited (In-Principle Agreement)** - In **July 2025**, Rudra Ecovation and Shiva Texfabs Limited announced an in-principle agreement to merge, combining their expertise, resources, and operations in PET recycling and textile manufacturing. - This integration is expected to create a vertically integrated powerhouse with enhanced scale, technology, and market reach. - The companies are already collaborating on joint market outreach, including co-showcasing products at major industry events such as **Textile Fairs India (TFI)** and **PRS Middle East & Africa**. #### **Planned Integration Roadmap** - In **February 2024**, Himachal Fibres (now Rudra Ecovation) first proposed merging with Shiva Texfabs to pivot into sustainable plastic recycling. - In **September 2024**, Rudra Ecovation announced plans to acquire a **21.46% equity stake** in Shiva Texfabs as a prelude to the full merger. - The combined entity aims to leverage full value chain integration—from waste collection to end-product manufacturing—while optimizing synergies across production, R&D, and sales. --- ### **Production & Capacity Expansion** Rudra Ecovation is undergoing significant expansion to meet growing demand for recycled materials: - **New Facilities (FY24–FY25):** - A new **7,000 tonnes/year rPET bottle-to-bottle (B2B) chip** plant. - An **acoustic panel** manufacturing unit with **750,000 sqm/year capacity**, launched in FY24. - Both units commenced **trial and initial commercial production by mid-2025**, with full ramp-up expected shortly. - **Expansion Focus Areas (Jun 2025):** - Recycled staple fibre - Filament yarn - Bottle-to-bottle (B2B) rPET chips - Acoustic panels - **Capacity Utilization & Revenue Outlook:** - As of mid-2025, Shiva Texfabs (core operational arm) operates at **~45% capacity**. - Sales stood at **INR 424.73 crore (provisional)** for FY25, up from **INR 420 crore (audited)** in FY24, with **7.72% EBITDA margin**. - Target: **100% utilization of expanded capacity by FY27**. - At full capacity, the combined business is projected to generate **INR 1,700 crore in annual revenue**, with **EBITDA margins of 16–17%**. --- ### **Sustainability & Environmental Impact** - The company recycles approximately **8.8 million plastic bottles per day**, processing **150 metric tons of waste PET daily**. - Annual operations avoid over **140,000 metric tons of CO₂ emissions**, contributing significantly to India’s climate goals. - Over 26 years, Shiva Texfabs (now part of Rudra Ecovation’s ecosystem) has established a legacy of environmental stewardship in plastic recycling. --- ### **Flagship Products & Brand Portfolio** - **Anaura**: - Premium brand of **upcycled sustainable fabric** made from post-consumer PET bottles. - Features: skin-friendly, flexible, durable, and eco-conscious—ideal for fashion, sportswear, and home furnishings. - **Daily production capacity: 320,000 sqm**. - Strong market traction; secured commercial orders from leading global brands. - R&D ongoing for new fabric variants. - **Other Key Offerings:** - rPET flakes - rPET spun and filament yarns - Non-woven carpets and fabrics - 100% rPET acoustic panels for architectural and commercial interiors - **Strategic Product Focus (High-Margin Lines):** - Anaura - Non-wovens - B2B rPET chips - Acoustic panels Future expansion plans include scaling **Anaura and non-woven production** to fully absorb surplus fiber output post-capacity expansion. --- ### **Leadership & Governance** - **Mr. Akhilesh Kumar Tiwari – CEO (as of Jun 2025)** - Master’s in Chemistry, with industrial training from IIT Kanpur. - Oversees all production operations, business strategy, performance improvement, and brand development. - Brings strong technical and operational expertise to drive growth and sustainability goals. - **Mr. V.K. Goyal – Former CEO (up to Jul 2024)** - Extensive leadership experience from Trident Ltd., Vardhman Spinning, and SEL Manufacturing. - Played a pivotal role in shaping operational excellence and strategic direction during transition phase. - **Promoter Leadership:** - **Mr. Akhil Malhotra**: Over 40 years in textiles and recycling; instrumental in establishing **India’s first integrated rPET recycling plant (2012–2013)** and pioneering high-tenacity fiber and acrylic recycling. - **Mayank Malhotra** and **Manoj Kumar** also serve in key director roles. --- ### **Market & Regulatory Tailwinds** - **China+One Strategy**: Global shift in sourcing (U.S./Europe) away from China benefits Indian textile exporters. - **Minimum Import Price (MIP)**: Indian government’s MIP of **USD 3.50/kg** on certain synthetic knits (valid until Sep 2024) protects domestic producers like Rudra Ecovation from cheap imports, enhancing competitiveness and profit margins. - **EPR Regulations (Extended Producer Responsibility)**: - Mandates 30% rPET content in packaging from FY25 onward. - Expected to drive strong demand from major brands like **Coca-Cola, Pepsi, and Hindustan Unilever**. - Domestic rPET B2B chip supply remains limited—offering a first-mover advantage to Rudra Ecovation. - **Input Cost Challenges**: Rising prices of cotton, coal, dyes, and chemicals pose industry-wide threats. However, growing consumer preference for **man-made fibers** (especially sustainable rPET) presents a key opportunity. --- ### **Transformation Journey: Timeline Summary** | Date | Key Milestone | |------------|---------------| | **Dec 2023** | Approved entry into sustainable rPET products; plans to acquire 51% in Shiva Cottex; launch new B2B chip & acoustic panel plants. | | **Feb 2024** | In-principle merger with Shiva Texfabs announced. | | **Mar 2024** | Rebranded from Himachal Fibres Ltd. to **Rudra Ecovation Limited**. | | **Jan 2024** | Completed integration of Shiva Cottex Pvt. Ltd. | | **May 2024** | Anaura reaches 320,000 sqm/day capacity; government imposes MIP. | | **Aug–Sep 2024** | Expansion plans unveiled; stake purchase in Shiva Texfabs; joint participation in trade fairs. | | **Jun–Jul 2025** | Merger momentum grows; joint product launches; commercial ramp-up of new facilities. |