**Date of Profile:** May 2026 **Industry:** Technical Textiles & Geosynthetics **Headquarters:** Ahmedabad, Gujarat, India Texel Industries Limited is a pioneer in the Indian **Geo-synthetic** and **Technical Textile** industry with over **35 years** of expertise. The company specializes in high-durability protective solutions, including geomembranes, geotextiles, and specialized agricultural fabrics. Following a strategic restructuring and the consolidation of manufacturing at its **Kheda, Gujarat** facility, the company has successfully transitioned from a period of net losses to a high-growth, profitable enterprise. --- ### 1. Strategic Business Segments & Revenue Mix As of **FY 2024-25**, Texel operates through two distinct segments, reflecting a strategy to maximize core manufacturing while unlocking value from non-core assets. | Segment | Key Products / Activities | Revenue Contribution (FY25) | | :--- | :--- | :--- | | **Technical Textile** | Geomembranes, Tarpaulins, Geotextiles, Vermiculture beds, Ground covers | **~93.88%** | | **Property Development** | Repurposing surplus land and building assets (Santej facility) | **6.12% (₹7.08 crore)** | The **Property Development** segment was introduced in **FY 2024-25** following the amendment of the **Memorandum of Association (MOA)** in 2023. This allows the company to monetize surplus assets resulting from the consolidation of operations at the Kheda plant. --- ### 2. Core Product Portfolio & Market Applications Texel’s product suite serves critical needs in water conservation, agriculture, and industrial infrastructure. In **September 2024**, the company rebranded with a new logo signifying **strength and protection**. #### **A. Primary Revenue Drivers** * **Geomembranes (38.78% - 42.86% of Turnover):** The flagship product, generating **₹49.6 crore** in FY25. These are used for agricultural pond liners (farm ponds), aquaculture (Biofloc technology), and landscaping. They feature high chemical, puncture, and tear resistance. * **HDPE Tarpaulins (18.95% - 22.35% of Turnover):** Generated **₹25.86 crore** in FY25. These include **Agro Sheets** supplied via government schemes and **General Purpose Sheets** for the FMCG, construction, and transport sectors. #### **B. Specialized Technical Textiles** The company is actively shifting its sales mix toward higher-margin niche products: * **Agriculture:** **Azolla Beds** (animal husbandry), **Vermibeds** (organic farming), **Grow Bags** (nurseries/terrace gardening), and **Ground Covers** (weed prevention). * **Water Management:** **Geo Tanks** (portable storage), **Geo Tubes/Lay Flat Tubes** (water conveyance), and **Water Proof Membranes** (structural protection). * **Industrial:** **Woven Geotextiles** (road reinforcement), **Lumber Covers** (timber protection), and **Metal Wrap** (anti-corrosive packaging for metal coils). --- ### 3. Manufacturing Excellence & Accreditations The company has optimized its cost structure by consolidating all manufacturing at the **Kheda facility**. * **Total Installed Capacity:** **23,680 metric tonnes** * **Total Practical Capacity:** **19,080 metric tonnes** * **Quality Standards:** ISO **9001:2015** (Quality), **14001:2015** (Environment), and **45001:2018** (Health & Safety). * **Industry Firsts:** Texel was the first Indian company to obtain the **IS: 15351** license for HDPE woven geomembranes. It holds multiple **BIS (ISI)** marks, including **IS: 7903** (Tarpaulins) and **IS: 15907** (Vermiculture beds). --- ### 4. Financial Performance & Turnaround Metrics Texel achieved a decisive financial recovery in **FY 2024-25**, returning to profitability after two years of losses. | Particulars (Standalone) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Revenue** | **₹ 121.17 Cr** | **₹ 95.23 Cr** | **₹ 100.30 Cr** | | **EBITDA** | **₹ 14.81 Cr** | *N/A* | *N/A* | | **Net Profit / (Loss)** | **₹ 4.89 Cr** | **(₹ 8.41 Cr)** | **(₹ 10.89 Cr)** | | **Net Worth** | **₹ 41.10 Cr** | **₹ 16.46 Cr** | **₹ 24.87 Cr** | | **Return on Net Worth** | **11.88%** | **(51.09%)** | **(43.78%)** | **Growth Highlights:** * **Revenue Growth:** **27.25%** year-on-year. * **EBITDA Growth:** Nearly **six-fold increase** in FY25. * **Export Expansion:** Export sales grew from **₹6.90 Cr** in FY23 to over **₹9.03 Cr** in FY24, with a focus on the **USA** and other international markets. --- ### 5. Capital Structure & Funding Strategy To fuel expansion and manage working capital, Texel has aggressively strengthened its equity base through preferential allotments and warrant conversions. * **Equity Capital:** Following a final warrant conversion in **April 2026**, the total paid-up equity share capital stands at **₹14,09,13,030** (consisting of **1,40,91,303** shares at **₹10** face value). * **Preferential Allotment (Oct 2024):** Raised **₹18,99,99,301.50** by issuing **49,67,302** shares at **₹38.25** per share. * **Warrant Conversion:** **7,84,312 warrants** issued to the promoter category (Avani Shailesh Mehta) at **₹38.25** were fully converted by **April 2026** after the final **75%** payment. * **Debt Management:** The company utilizes a mix of term loans from **Kotak Mahindra Bank** and **HDFC Bank**. It secured a **SIDBI loan** specifically for solar panel installation, repayable through **October 2029**. --- ### 6. Future Growth Strategy: "China + 1" & Innovation Texel is positioning itself to benefit from global supply chain shifts and domestic infrastructure tailwinds. * **Global Reach:** Expanding the **"China + 1"** strategy to capture market share in the **USA** and untapped territories. * **R&D Pipeline:** Several new research-driven products, including **crop covers** and **metal wraps**, have reached the trial stage for domestic and international markets. * **Sustainability:** Investing in **recycled polymers** and a **solar power generation facility** to reduce carbon footprint and operational costs. * **Leadership:** **Mr. Shailesh Ramniklal Mehta** has been re-appointed as **Chairman & Managing Director** until **February 2029**, ensuring leadership continuity. --- ### 7. Risk Profile & Mitigation Framework The company operates under a structured risk management framework to navigate market and operational headwinds. #### **Financial & Regulatory Risks** * **Subsidiary Performance:** The net worth of **Texel Industries (Africa) Limited** is fully eroded; management has recognized impairment losses of **₹54.33 Lacs** on investments and loans. * **Subsidy Receivables:** **₹4.09 crore** in government subsidies (Textile Policy - 2019) is recognized but pending final approval. * **Litigation:** A pending **EPFO** demand of **₹11.31 Lacs** is currently being challenged in the **Gujarat High Court**. #### **Operational & Market Risks** * **Raw Material Volatility:** Exposure to **crude oil and gas prices** (HDPE/Polymer costs) is mitigated through market diversification and export growth. * **Climate Sensitivity:** Demand for geomembranes is tied to weather patterns (**El-Nino/La-Nina**). The company uses the **Bharat Forecasting System (BFS)** to align supply with agricultural cycles. * **Currency & Interest Risk:** Managed via **derivative instruments** and hedging for transactions within a **12-month** window. * **Market Adoption:** The company faces the challenge of low awareness of geosynthetics in India, which it addresses through technical certifications and government liaison.