### **Overview** GHCL Textiles Ltd (GTL) is a leading Indian manufacturer and exporter of high-quality cotton, blended, and specialty yarns, with growing vertical integration into knitted and woven fabric production. Formed on **April 1, 2023**, through the demerger of the textiles business from **GHCL Limited**, GTL traces its origins to **Sri Meenakshi Mills (established in 1927)**. The business was acquired and successfully revived in 2002 after being classified as a “sick unit,” marking the beginning of a strong turnaround journey. Operating two state-of-the-art manufacturing facilities in **Paravai (Madurai)** and **Manaparai (Tiruchirappalli), Tamil Nadu**, GHCL Textiles has emerged as a preferred supplier for premium domestic and international customers, leveraging advanced machinery from global leaders such as *Rieter, Schlafhorst, Murata,* and *Savio*. --- ### **Financial Performance** - **FY25 Revenue**: ₹1,168 crore (up from ₹611 crore in FY21) - **EBITDA Margin (FY25)**: 10% (below long-term average of 15–17%, due to prolonged industry-wide cotton price volatility and weak demand) - **Growth Drivers**: Volume expansion, product diversification toward value-added products, and increasing fabric sales - **Balance Sheet**: Strong and resilient; debt-free with surplus cash and internal accruals funding expansion Export share has grown significantly—from **6% in FY21 to ~15% in FY24**, with expectations to rise to **40% in the medium term**. --- ### **Capacity & Operations** **Current Capacities (as of Nov 2025):** - **Ring Spindles**: 225,000 - **Rotors**: 3,320 - **Vortex Spindles**: 480 - **TFO Spindles**: 5,760 - **Yarn Production Capacity**: ~39,000 MTPA - **Energy Capacity**: **62 MW of green energy (wind & solar)** → meets **72% of total power needs** **Key Operational Highlights:** - **Capacity Utilization**: Consistently high at **~99% in FY25**, reflecting strong demand and efficient operations - **Lean Cost Structure**: Supported by energy efficiency, captive power, and operational rigor - **Workforce Composition**: ~80% skilled women employees – contributing to stable, socially responsible operations --- ### **Strategic Expansion & Vertical Integration (2025–2030)** GHCL Textiles is undergoing a transformative shift from a **yarn-focused player** to an **integrated fabric solutions provider**, targeting **ready-to-cut (RTC) fabric** capabilities. #### **Key Projects (Status as of Nov 2025):** ✅ **New 25,000-Spindle Spinning Unit** - Commissioned in **June 2025** at a capex of ₹215 crore - **On track for full ramp-up by Q3 FY26** - Expected to generate **₹250 crore in annual revenue** - Supports **captive consumption** for upcoming in-house knitting operations 🔄 **Knitting Expansion – 40 Machines in Two Phases** - **Phase 1 (10–15 machines)**: Expected in **Q3 FY26** - **Phase 2 (remaining)**: By **Q4 FY26** - **~70–80% of yarn from new 25K spindles to be consumed internally**, optimizing logistics and margins 🔜 **Downstream Integration (Post-2026)** - Plans for **weaving, dyeing, and processed fabric** production - Target: Establish a fully integrated value chain from yarn to finished fabric - Facility planned in **PM MITRA Park** for future growth #### **Renewable Energy Expansion** - **Current**: 62 MW green energy → 72% of total requirement - **Target**: Expand to **97 MW** (adding 35 MW), meeting **75–85%** of total energy demand - **New 10 MW green energy project** underway, completion expected by **Q1 FY26-27** - Cost advantage: Renewable power at ₹1–2/unit vs. grid at ₹7–8/unit in Tamil Nadu --- ### **Product & Market Strategy** #### **Product Portfolio** - **Yarns**: 100% cotton, blends (polyester-cotton, viscose), specialty fibers (**Tencel, Micro Modal, rPET, Viscose**) - **Counts**: 10s to **2/170s** (fine-count specialty) - **Specialty Offerings**: GIZA, SUPIMA, Australian cotton, CmiA-certified, recycled PET - **Value-Added Focus**: Tailor-made yarns to meet customer-specific technical and sustainability requirements #### **Fabric Growth (Key Trend)** - **Knitted Fabric Sales**: - FY23: 44 MT → FY25: **514 MT** - **Griege (Grey) Fabric Sales**: - FY23: 50 lakh meters → FY25: **159 lakh meters** - **Fabric as % of Revenue**: Currently ~7.5%, expected to rise to **60% of total revenue** at full integration (₹2,000 crore run rate) --- ### **Customers & Competitive Positioning** - **Long-Term Relationships**: >10 years with several key customers - **Premium Customer Base**: Serves strategic global brands and export-oriented domestic manufacturers - **Export Markets**: - **Bangladesh (40–50% of export revenue)**, followed by **Europe, Turkey, and Southeast Asia** - Focused on high-margin, differentiated products – **not commodity exports** - **Export Strategy**: Target **40% export revenue mix** as demand recovers in US and Europe --- ### **Sustainability & Innovation** - **Green Energy**: 62 MW already installed; key cost and sustainability advantage - **Traceability Platform**: Offers customers **real-time data on raw material origin, environmental and social impact** – especially for premium cotton (Supima, Giza, CmiA) - **USTERIZED® Certification**: Validates **high spinning quality standards** - **Real-Time Quality Monitoring**: Integrated into production lines --- ### **Investment & Capex Plan** - **Total Planned Capex**: ₹1,000–1,035 crore - **Already Invested**: ~₹600 crore (as of Nov 2025) - **Funding**: Internal accruals + bank financing (supported by debt-free balance sheet) - **Land Bank**: Significant owned land in Tamil Nadu for future expansion **Investment Milestones**: - ₹215 crore: 25,000-spindle project - ₹38 crore: Knitting machine installation (40 machines) - ₹35 crore: Renewable energy projects - Balance allocated to weaving, dyeing, and processing capacities --- ### **Leadership & Vision** **Strategic Vision**: > *“To become a premium ready-to-cut fabric manufacturer, offering sustainable, traceable, and high-quality textile solutions from India.”* **Key Strategic Pillars**: 1. **Vertical Integration** – From yarn to finished fabric 2. **Value-Addition** – Shift to tailor-made, specialty, and functional fabrics 3. **Sustainability** – Expand green energy, promote circular fibers (rPET, Tencel) 4. **Operational Excellence** – Cost leadership via efficiency and captive power 5. **Customer Centricity** – Long-term partnerships with premium, strategic clients ---