### **Overview** Vishal Fabrics Limited (VFL), established in **1985** and headquartered in **Ahmedabad, Gujarat**, is a leading Indian textile processing company and a flagship entity of the diversified **Chiripal Group**. The company specializes in **dyeing, printing, and finishing** of denim and other high-quality fabrics, including pure cotton, cotton-spandex blends, modal, Tencel, polyester, and viscose. With an annual processing capacity exceeding **100 million meters**, VFL is recognized as one of **India’s largest and Asia’s leading denim fabric manufacturers**. --- ### **Core Business & Operations** VFL operates two advanced manufacturing units: - **Dholi Unit** (Dholi Integrated Spinning Park, Ahmedabad): - Denim dyeing and processing capacity of **90 million meters per annum (MMTPA)** - Houses a **6 MW captive power plant** for energy security and sustainability - **Narol Unit** (Ahmedabad): - Processing capacity of **105 MMTPA** for cotton, spandex, polyester, viscose, and blended fabrics - Offers job work services for apparel and home furnishings Together, these facilities support a total output of over **100 million meters of processed fabric annually**. The company has expanded its denim lines to **eight fully operational lines**, with a dedicated **80 MMTPA denim dyeing capacity**. --- ### **Business Model: Asset-Light & Flexible** VFL follows a **strategic asset-light business model**, outsourcing non-core activities such as **spinning and weaving**, while retaining control over **core competencies** including: - Product development - Yarn dyeing - Fabric finishing This model enhances **operational agility**, reduces capital intensity, shortens lead times, and enables rapid adaptation to dynamic fashion trends. It also ensures **cost competitiveness** while freeing capital for innovation and sustainability initiatives. Approximately **40% of yarn** is sourced from a sister company within the Chiripal Group, with the remaining **60% procured from the open market**, balancing cost efficiency and supply chain resilience. --- ### **Product & Market Focus** #### **Domestic Market** - Targets the **premium to super-premium denim segment**, enabling higher realization per meter and reduced competition. - Currently, **55% of denim sales** come from North and East India, and **35% from West India**, signaling potential for expansion in South and Central India. - Strategic partnerships with leading national denim brands like **Killer, Spykar, Pepe, and Mufti** are being strengthened, especially in urban centers such as **Mumbai and Bengaluru**, to boost branded domestic sales. - **Per capita denim consumption in India is below one garment**, presenting vast untapped potential compared to 4–6 garments in Western markets. #### **Export Growth** - Exports are currently limited to **Nepal and Sri Lanka**, but the company is actively exploring new markets: **Portugal, Panama, Kenya, Morocco, and Bangladesh**. - Plans to export **over 500,000 meters of denim** in FY2026 as part of a broader internationalization strategy. - Already serves international clients in **South Africa, Thailand, Bangladesh, and Sri Lanka**, with growing interest from global fashion brands. - Aims to leverage **“China+1” supply chain diversification**, increasing its presence in **Europe, Latin America, and the Gulf region**. --- ### **Capacity & Technology** - Invested in **high-end machinery**, including: - Continuous Bleaching Range - Rotary Screen Printing Machines - Hydro Extractors - Sanforizing & Sueding machines - 464 weaving looms (capable of producing fabric widths up to 90") - Produces **wider-width denim (62"–90")**, exceeding the industry norm (62"–68"), reducing garment waste by **5–7%** and enhancing fabric efficiency. - **In-house R&D and design studio** staffed by professionals from premier institutions; develops **over 40 new products monthly**, ensuring trend responsiveness. - Achieves **faster drying and lower carbon footprint** through low water-retention and high stretchability in fabrics. --- ### **Sustainability & ESG Commitments** VFL integrates **sustainability into core operations**: - **Zero Liquid Discharge (ZLD)** and **Effluent Treatment Plant (ETP)** systems - **Water recycling** and closed-loop processes - Use of **eco-friendly dyes and raw materials** - **6 MW captive power plant** for energy efficiency and reduced grid dependence - Certified under: - **ISO 9001:2015** (Quality Management) - **ISO 14001:2015** (Environmental Management) - **OEKO-TEX, BCI, and GOTS** Committed to **decarbonization**, resource efficiency, and **circular manufacturing practices**. --- ### **Financial Performance** - **FY 2024–25 Financials**: - **Revenue from Operations**: ₹1,521.14 crores - **EBITDA**: ₹84.55 crores - **PAT**: ₹23.83 crores - Growth driven by **cost optimization, operational efficiency, and capacity utilization** - **Historical Growth**: - Revenue of ₹1,296.84 crores in FY19–20 (29.89% YoY growth) - Achieved ₹968 crores in FY2020 (from FY2019) --- ### **Strategic Alliances & Expansion** VFL has strengthened its **integrated textile value chain** through strategic investments in: - **Quality Exim** - **Nandan Industries** - **Chiripal Textile Mills** These **associate companies** enhance vertical integration, improve supply chain efficiency, and broaden market access across India, Bangladesh, Thailand, and Africa. A **rights issue of ₹878 crores** was completed to fund capacity expansion, and the company’s shares were **upgraded from BSE SME to BSE Mainboard** in 2021–22, reflecting maturity and scalability. --- ### **Key Summary Metrics** | Parameter | Value | |--------|-------| | Founded | 1985 | | HQ | Ahmedabad, Gujarat | | Parent Group | Chiripal Group | | Manufacturing Units | 2 (Dholi & Narol) | | Total Processing Capacity | >100 million meters/year | | Denim Dyeing Capacity | 80–90 MMTPA | | Other Fabric Processing | 105 MMTPA | | Employees | ~2,200 | | Revenue (FY24–25) | ₹1,521.14 crores | | EBITDA (FY24–25) | ₹84.55 crores | | Export Markets | South Africa, Thailand, Sri Lanka, Bangladesh, Nepal (expanding) | | Key Certifications | ISO 9001, ISO 14001, OEKO-TEX, BCI, GOTS | | Sustainability Features | ZLD, ETP, Water Recycling, 6MW Captive Power Plant |