- **Modern Threads (India) Limited is a textile manufacturer that spins wool and synthetic fibres into high-fashion yarn, exporting to over 25 countries from its base in Rajasthan**. The company began in 1973 as Modern Woollens, focusing on wool and wool-blended worsted yarn, and expanded into wool tops in 1989, a shift that redefined its identity and still anchors the business today. Its recurring approach is to chase value, not volume - targeting high-end fashion markets with specialty yarns, upgrading machinery relentlessly, and using its own cash flows to move from wool into synthetic blends, a pattern that explains both its survival through financial distress and its current two-engine structure. # Business segments Two engines at different stages - a wool-yarn cash cow built over five decades, and a synthetic-yarn challenger scaled alongside it - each serving the same global fashion customer with a different fibre. ## 1. Woollen Division: the original engine, spinning wool into high-fashion yarn **This is where the company’s identity and the bulk of its revenue live - a vertically integrated wool processor that takes raw Australian wool and turns it into certified, export-grade worsted yarn, wool tops, and lanolin for premium apparel brands.** - **From raw wool to finished yarn, all under one roof** - the division combs raw wool into wool tops, spins those tops into worsted yarn, and extracts wool grease and lanolin as by-products, so it captures value at every processing stage rather than buying semi-finished inputs. - **Certified sustainability opens the richest markets** - it now makes and exports RWS (Responsible Wool Standard) and GRS (Global Recycled Standard) certified yarn, which is how it penetrates high-end European and Japanese markets where traceability commands a better price. - **The lab is the quality gate** - an in-house laboratory equipped with ‘Inter-Wool Lab’-accredited instruments enforces rigorous quality control, which the company credits for achieving what it calls “international pre-eminence in the field of processing wool”. - **Exhibitions are the sales floor** - the marketing team regularly travels to global trade shows, including Première Vision Paris, to develop the yarn market and stay close to fashion buyers, rather than relying on distant distributors. - **Old machines replaced, not just repaired** - the division has systematically swapped out old machinery for new, efficient equipment, which has improved product quality, cut customer complaints, reduced manpower needs, and saved energy. ## 2. Yarn Division: the synthetic challenger, built on the wool engine’s blueprint **A polyester and viscose spinning operation that applies the same high-quality, export-oriented playbook to synthetic fibres, giving the company a second leg in the fashion-fabric market.** - **Polyester-viscose blends for the same fashion customer** - the division makes polyester viscose fibre-dyed yarn, 100% polyester yarn, and 100% viscose yarn, serving both domestic and export markets with the same specialty-yarn positioning as the wool business. - **A dedicated plant with its own power** - the Threads Division operates from a separate site at Village Raila on the Ajmer-Bhilwara highway, with 27,648 PV spindles and 1.5 MW of rooftop solar capacity installed, which lowers energy costs and insulates production from grid disruptions. - **Quality control mirrors the wool division** - a well-equipped laboratory with ‘Inter-Wool Lab’ accredited instruments enforces the same strict quality standards, so the synthetic yarn meets the specifications of demanding international buyers. - **Sustainable inputs are becoming the norm** - the division increasingly uses recycled polyester, biodegradable inputs, and other sustainable raw materials, which aligns with the same traceability trends driving the wool business. - **Competing against low-cost countries** - the division faces stiff competition from countries with labour cost advantages and favourable trade terms, as well as from India’s unorganized sector, which means professional training to upgrade competency is a necessity, not a luxury. # Group structure and partners **A lean corporate structure with one dormant overseas subsidiary and a legacy financial overhang that the company is slowly settling.** - **A UK subsidiary, not yet operational** - Modern Woollens UK Ltd was incorporated in England and Wales in November 2024 as a wholly owned subsidiary, but the parent has not yet paid the subscription amount and the entity has not commenced business. - **Promoter-group ties for materials and funding** - the company has purchased goods from and taken unsecured borrowings from related parties in the promoter group, including Modern Polytex Limited and Modern Terry Towels, which means some supply-chain and financing relationships sit within the promoter network. - **A 25-year solar power deal locked in** - a Power Purchase Agreement signed in April 2026 with KGK Greens Private Limited secures 5 MW of solar capacity on a long-term basis at Phalodi, Rajasthan, with no promoter interest in the supplier, so it is an arm’s-length green-energy hedge. - **A legacy BIFR overhang still being cleaned up** - the company was declared a sick industrial company in 2005, and while the SICA framework was repealed in 2016, it still carries share application money of Rs. 1,450 lakhs that has become refundable and is in the process of settling outstanding redeemable preference share capital.