1. Spinning modernisation - ₹325 Cr efficiency programme - The company is replacing old ring frames with ultra-modern machinery across its spinning units at a cost of ₹325 Cr, targeting completion by FY28. Management expects a 9% increase in production efficiencies and lower power consumption from the same 573,408-spindle base, directly lifting margins on the ₹2,047 Cr yarn segment.
2. Solar power expansion - 11 MW addition - An 11 MW solar PV system is being added for captive consumption at a ₹25 Cr outlay, raising total rooftop solar capacity to 25.47 MW by FY28. With renewable energy already at 34% of total usage, the incremental zero-fuel-cost power lowers the cost base of the energy-intensive spinning operations.
3. Airjet spinning ramp-up - The company has adopted airjet spinning technology and is already producing yarn at 98% efficiency with lower energy consumption. This technology shift supports the export diversification push into the US and EU by delivering the quality specs those markets demand.
4. Export diversification into US and EU - The modernisation programme is explicitly aimed at increasing exports to quality-conscious markets of the US and European Union, leveraging the China-plus-one shift as global buyers reduce exposure to China. Moving up the value chain into these markets can improve realisations on the ₹1,635 Cr export base.
5. Value-added yarn portfolio - R&D is focused on a wide range of premium yarns - compact, multi-slub, injected slub, vario SIRO, zero twist, melange, and organic/recycled blends - for both overseas and domestic markets. A richer product mix supports higher per-kg realisations without requiring additional spindle capacity.
6. Energy-saving certificates (PAT scheme) - Two units have already been awarded Energy Saving Certificates, and the company expects to be EScerts-positive again in PAT Cycle 7. Saleable certificates add a recurring non-operating income stream tied directly to energy-efficiency gains already underway.