Surbhi Industries Limited is a Gujarat-based textile manufacturer established in **1992**. Headquartered in **Surat**, the company operates a capital-intensive manufacturing model specializing in the production of **Knitted Fabrics and Yarn**. With a legacy spanning over three decades, the company is currently undergoing a strategic transition toward **technological modernization** and **renewable energy integration** to enhance its competitive positioning in the domestic Indian market. --- ### **Core Business Segments & Integrated Operations** The company’s primary revenue driver is its **Textiles** segment, which encompasses a vertically integrated range of activities. Beyond manufacturing, the company has diversified into **Renewable Energy** to achieve cost efficiencies and sustainability goals. | Segment | Key Products & Activities | |:---|:---| | **Textiles** | Production of **Raw (Gray) Cloth**, **Yarn**, and **Knitted Fabrics**; specialized **Embroidery Work** and **Garment** manufacturing. | | **Renewable Energy** | Captive power generation via **Wind Power** and **Solar Energy** to offset industrial electricity consumption. | **Manufacturing Infrastructure:** * **Location:** The primary facility is situated in **Karanj, Surat**, a major textile hub in India. * **Facilities:** The site houses specialized **knitting and twisting plants** powered by electricity from **DGVCL**. * **Workforce Dynamics:** As of September 2025, the company employs **110 permanent employees**. The broader workforce is approximately **85%** blue-collar (operators, helpers, and cleaners), with daily wages ranging between **₹500–₹800**. --- ### **Financial Performance & Turnaround Analysis** Surbhi Industries demonstrated a significant financial recovery in **FY 2024-25**, successfully transitioning from a net loss to a substantial profit. This turnaround was driven by a near-doubling of revenue and optimized cost management. | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Revenue** | **₹ 39.34 Crores** | **₹ 20.01 Crores** | **₹ 28.65 Crores** | | **Net Profit / (Loss)** | **₹ 3.29 Crores** | **(₹ 1.60 Crores)** | **₹ 0.08 Crores** | | **Revenue Growth (YoY)** | **~96%** | **(30%)** | **(0.03%)** | | **Net Profit Ratio** | **Positive** | **Negative** | **0.33%** | **Key Financial Drivers:** * **Profitability Factors:** The **FY 2025** recovery was attributed to increased **turnover**, a reduction in **proportionate finance costs**, and lower **depreciation expenses**. * **Capital Structure:** The **Authorised Share Capital** is **₹ 5.00 Crores**, with a **Paid-up Share Capital** of **₹ 3.44 Crores** (3,437,400 equity shares at **₹ 10 par value**). * **Shareholding Pattern:** Promoters hold a majority stake of **64.76%**, while the public holds **35.24%**. * **Resource Conservation:** The Board has not recommended a **Dividend** for the last three financial years (**FY 2023–2025**) to retain liquidity for expansion and modernization. --- ### **Strategic Growth & Technological Upgradation** The company is pivoting toward high-value segments and modern manufacturing techniques to capitalize on the expanding Indian textile market. * **Cotton-Based Technology:** A core long-term strategy involves developing **Cotton-based technology**. The company is currently **importing new machinery** to improve quality standards and reduce operational costs. * **Product Diversification:** Plans are underway to launch a new project focused on **Embroidery-based production** to broaden the textile portfolio. * **Operational Efficiency:** Management is prioritizing personnel training to improve **productivity** and navigate open market challenges. --- ### **Energy Sustainability & Captive Power Model** To mitigate rising energy costs and reduce its carbon footprint, Surbhi Industries has invested in a green energy model where generated power is credited against **DGVCL** consumption bills. * **Solar Power:** Operates a **Ground Mounted Solar Park** at Dinod village, Surat, with an installed capacity of **1263.6 kW (DC) / 1120 kW (AC)**. This required a capital investment of **₹ 5.23 Crore**. * **Wind Power:** Operates wind mills for captive use. * **Annual Generation (FY25):** * **Solar Park:** **10.95 lakh units**. * **Wind Mill:** **8.56 lakh units**. --- ### **Market Outlook & Macroeconomic Context** The company operates within a sector poised for significant growth, supported by favorable government policies and rising demand for technical and industrial textiles. | Market Segment | Projected Value / Volume | Target Year | Growth Metric (CAGR) | | :--- | :--- | :--- | :--- | | **Overall Indian Textile Market** | **US$ 209 Billion** | **2029** | - | | **Indian Composites Market** | **US$ 1.9 Billion** | **2026** | **16.3%** | | **Industrial Textiles Market** | **US$ 3.3 Billion** | **2027** | **8%** | | **Medical Textiles** | **US$ 22.45 Million** | **2027** | **15%** | **Government Policy Tailwinds:** * **PLI Scheme:** A total outlay of **₹ 10,683 crore** for **Man-made Fibre (MMF)** and **Technical Textiles**. * **Modernization Support:** **₹ 635 crore** allocated for the **Amended Technology Upgradation Fund Scheme (ATUFS)**. * **Infrastructure:** Development of **75 Textile Hubs** and **MITRA Parks**. * **FDI:** **100% FDI** permitted under the automatic route. --- ### **Risk Management & Governance Framework** The company faces a complex risk landscape, ranging from geopolitical volatility to raw material price fluctuations. These are monitored by a **Risk Management Committee** and an **Audit Committee**. **Primary Risk Factors:** * **Geopolitical & Supply Chain:** Conflicts (Russia-Ukraine, Middle East) and trade shifts (USA-led tariffs, Bangladesh crisis) disrupt supply chains and demand patterns. * **Input Cost Volatility:** Fluctuations in **Global Oil Prices** impact the cost of **Polyester, Dyes, and Chemicals**, while **Cotton prices** remain sensitive to climate and logistics. * **Currency & Market Risk:** Major **Rupee vs. Dollar** fluctuations affect margins. The industry also faces intense price competition from **China**. * **Logistics:** Shortages in **shipping containers** and logistical bottlenecks can delay revenue realization. **Governance Structure (Risk Management Committee):** * **Mr. Satish Narandas Patel:** Chairman (Independent) * **Mrs. Sheetal Harsh Patel:** Member (Independent) * **Mr. Ravjibhai Parbatbhai Patel:** Member (Executive) The company maintains compliance with **Section 148 (1)** regarding cost records and adheres to **Section 186** of the Companies Act, 2013, regarding loans and investments.