GHCL Textiles Limited is poised for significant growth with strategic investments and capacity expansion plans. The company is investing Rs. 215 crores to add 25,000 spindles by Q2 of FY26, projecting a revenue increase of Rs. 250 crores. This expansion follows the successful installation of 40,000 spindles and 15 MW of renewable energy in the past two years. With a revenue of Rs. 1060 crores for FY24, GHCL Textiles is well-positioned to double its revenue within the next five years.
Strategic Focus and Market Position
Mr. R. S. Jalan, Non-Executive Director of GHCL Textiles Limited, emphasizes the company’s commitment to maintaining its position as a premium yarn manufacturer known for exceptional quality. The strategic focus remains on catering to the distinct needs of customers in the premium segment. The diverse product portfolio includes synthetic fiber, double yarn, open-end, and cotton yarn ranging from 24 to 120 counts, showcasing the company’s ability to adapt to dynamic market trends and reinforce its competitive position.
Established in 1927 as Sree Meenakshi Mills, the company began its journey with the acquisition of a sick spinning unit in 2002. It has since transformed into one of India’s leading yarn manufacturers and exporters. In 2021, the GHCL Group demerged its Textile business into GHCL Textiles Limited and sold its Home Textiles Business to Indo Count.
State-of-the-Art Infrastructure
GHCL Textiles boasts state-of-the-art manufacturing infrastructure with cutting-edge textile machinery. The company’s manufacturing capacity includes 2.25 lakh spindles, 3,320 rotors, 5,760 TFO drums, and 5 air jet spinning machines, with a total production capacity of 38,000 MTPA. Plans are in place to expand the product basket and increase the spinning capacity by 1.5 times.
GHCL Textiles is planning vertical integration of its textile manufacturing to include knitted and woven finished fabrics, which yield superior margins and integrate well with the existing business. The company has announced a total investment of Rs. 1045 crores, with Rs. 350 crores already invested in adding 40,000 spindles, Rs. 250 crores currently being invested to add 25,000 spindles, and another Rs. 500 crores planned for vertical integration in the coming years.
GHCL produces high-quality yarns, including GIZA, SUPIMA, and Australian, catering to both domestic and international markets. The company has strategically increased the revenue mix of value-added products to 48% of total revenue, effectively mitigating market fluctuations and enabling stable margins.
Green Energy Initiatives
GHCL Textiles is committed to sustainability, with substantial green energy assets providing cost benefits. The company is increasing its investment in green energy from the current 62 MW to 75 MW, which will cater to up to 85% of GHCL’s energy requirements.
Positive Industry Trends
GHCL is optimistic about the medium-term performance of the spinning industry, driven by demand inquiries from the downstream segment and moderation in cotton prices from their peak levels.
GHCL Textiles Limited is on a robust growth trajectory, driven by strategic investments, capacity expansion, and a focus on premium quality and sustainability. With a comprehensive plan to double its revenue within the next three to five years, the company is well-positioned to achieve remarkable success and set new benchmarks in the textile industry.
