Precot Limited is a textile manufacturer that has spent six decades transforming from a single cotton-spinning mill into a specialised producer of high-purity hygiene and cosmetic fabrics. Incorporated in 1962 and starting production with just over 12,000 spindles in Kerala, the company made its pivotal shift in 2013 by building a greenfield technical-textile plant in Karnataka, diversifying into nonwoven cotton spunlace. The recurring approach that explains everything else is a deliberate move away from commodity yarns toward value-added products where consistency and purity command a premium, while continuously pruning underperforming legacy assets to free up resources for the growth engine.
Business segments
Two engines at different stages - a legacy spinning operation being rationalised for efficiency, and a technical-textiles platform built on top of it that now drives the company’s ambition in hygiene and cosmetics.
1. Spinning: the commodity foundation being reshaped for value
A network of cotton and blended-yarn mills across southern India that is shrinking its commodity exposure and modernising its remaining capacity to feed higher-margin demand.
- Makes the yarn that others weave - the division produces cotton yarns, polyester-cotton blends, specialty yarns and sewing threads from organic, BCI (Better Cotton Initiative) and conventional cotton, selling into weaving, knitting and general textile production.
- Five mills, one recently closed - manufacturing is spread across units in Kerala, Tamil Nadu and Karnataka with a total capacity of 1,62,720 spindles, after the Hindupur unit in Andhra Pradesh was discontinued in February 2025 because it had been losing money for seven to eight years under high power tariffs and wage costs.
- Machinery from the closed unit upgrades the rest - rather than scrapping everything, the company is redeploying usable fixed assets from Hindupur to modernise its other spinning units, including adding 8,400 spindles at its Kanjikode A unit in Kerala.
- Pushing toward specialisation - investments in compact spinning and spindle-monitoring systems have been completed, and the division uses yarn-conditioning equipment for precise moisture control plus Italian singeing machines to produce high-quality gassed yarn, all aimed at reducing reliance on commodity products.
- Cotton sourced mostly at home - 80% of raw cotton is procured domestically, with the balance imported from the USA and Australia for value-added products, giving the company a natural hedge on local supply while accessing longer-staple imports where needed.
2. Technical Textiles: the hygiene and cosmetics growth engine
A nonwoven cotton spunlace business that makes the absorbent fabric inside sanitary pads, makeup removers and medical wipes - and increasingly sells the finished product under retail brands.
- Four-layer fabric is the core - the division’s signature product is a highly absorbent, four-layer cotton spunlace nonwoven that is strong enough for further processing into pads, buds, tampons, wipes and first-aid products.
- Totally chlorine-free and toxin-free - the purified cotton range carries OEKO Tex and REACH compliance, contains zero residual chemicals, and is promoted as organic and recycled, which matters because end-users are putting these products on skin and wounds.
- Contract manufacturing riding the China-plus-one shift - the division acts as an Indian contract manufacturer for global hygiene brands, with target export markets including the USA, Australia and South Africa, and has recently entered Canada and Vietnam while expanding share in Australia and the UK.
- Capacity expansion just landed - utilisation of existing machines was already near optimal, and a planned expansion was held back by machinery delivery delays until the new capacity was finally commissioned in the fourth quarter of FY25.
- A dedicated leader with three decades in textiles - the division is run by a director with more than 29 years of industry experience, signalling that the company treats this not as a side project but as a separately led business with its own design and R&D capabilities.
Operations and infrastructure
The company runs a vertically integrated manufacturing backbone across four southern Indian states, with captive green power and a deliberate approach to hedging cotton and currency risk.
- In-house design and development - manufacturing is vertically integrated, with facilities located close to raw-material sources and connected by ports and roads, which keeps logistics costs under control while giving access to both skilled and unskilled labour.
- Captive power cuts the energy bill - the company operates 5 MW of wind and 10 MW of solar generation, plus gas-based power plants, with own-captive solar at Kanjikode and Hindupur making up the 10 MW in-house solar capacity, and a 12.6 MW group-captive solar tie-up for Pollachi and Hassan, so a large share of its electricity cost is self-generated.
- Cotton prices hedged by planning, not derivatives - raw-material price risk is managed through careful purchase planning and the ability to pass cost increases on to customers, while foreign-exchange exposure is naturally hedged by matching export receivables with foreign-currency borrowings, supplemented by forward contracts of less than six months that hedge underlying liabilities and firm commitments and are never used for speculation.
- Water recycled on site - effluent treatment plants handle water management, and the company points to recycled water as part of its sustainability credentials alongside the green-energy investments.
Group structure and partners
A lean corporate structure with a single listed entity, a dormant subsidiary, and a family-led management team that has run the business for decades.
- Listed on the NSE, one subsidiary with no operations - Precot Limited is listed on the National Stock Exchange of India, and its subsidiary Suprem Associates is a partnership firm that does not conduct any business and is consolidated only as required by accounting standards.
- Leadership drawn from the founding family and long-serving executives - the Chairman and Managing Director has more than 25 years in textiles, the Vice Chairman and Managing Director more than 20, and the Executive Director more than 32, while the Technical Textiles Director brings 29 years of specialised experience.
- Registered in Coimbatore, operating across the south - the registered office is in Tamil Nadu, while manufacturing spans Kerala, Karnataka and Tamil Nadu, with the Andhra Pradesh unit now closed.