New Facility to Boost Total Capacity to 600,000 Tons Annually
Sanathan Textiles Ltd., a leading player in India’s textile industry, is embarking on a significant expansion journey to enhance its production capacity and market presence. In an exclusive interview, Mr. Paresh Dattani, Chairman and Managing Director, and Mr. Sammir Dattani, Director of Sanathan Textiles, shared insights into the company’s vision for growth and sustainability. They discussed the company’s major investments, including the development of a state-of-the-art greenfield facility in Punjab. This expansion aligns with the increasing demand for high-quality yarns across domestic and global markets and underscores Sanathan’s commitment to innovation and long-term value creation.
Sanathan Textiles maintains an impressive 96% consistent capacity utilization at its Silvassa Plant, reflecting operational efficiency and strong market demand. Additionally, the company demonstrates a well-structured success plan, with the second generation actively involved in the company’s operation, ensuring continuity, innovation, and sustained leadership for the future.
Punjab Expansion: A Game-Changer for Sanathan
One of the most significant strategic moves by Sanathan Textiles is its new greenfield polyester filament yarn facility in Wazirabad, Punjab. With an estimated investment of INR 1,850 crores for the first phase, the facility is expected to be operational in the first quarter of FY26. This project will increase the company’s polyester filament yarn production capacity from the current 550 tons per day to 1,500 tons per day in a phased manner. The first phase will contribute approximately 250,000 tons annually, while the second phase will further ramp up production to 355,000 tons annually with an additional investment of INR 250 crores.
Speaking about the new project Mr. Paresh Dattani said, “Our expansion into Punjab is a strategic move to bridge the supply gap in North India, ensuring faster deliveries and cost efficiencies for our customers. This marks a significant step towards strengthening India’s domestic textile ecosystem. With our greenfield project in Punjab, we are not only scaling up capacity but also integrating sustainable manufacturing practices to minimize environmental impact while maximizing efficiency”.
The Rationale Behind the Punjab Expansion
The decision to establish a manufacturing facility in Punjab is driven by strategic market dynamics and logistical advantages. While India produces around 4.5 million tons of filament yarn annually, a substantial 1.2 million tons are consumed in North India, particularly in regions like Delhi NCR, Panipat, Ludhiana, and Amritsar. However, all this supply has traditionally come from the western region, adding logistics costs and extended delivery timelines for customers.
Recognizing this gap, Sanathan Textiles decided to set up a local production hub, making it the first filament yarn manufacturer in North India. The move ensures just-in-time deliveries for customers, reducing costs and improving supply chain efficiencies. As the industry moves towards localization, this investment positions Sanathan as a preferred supplier for major textile hubs in the region.
Sharing his thoughts on the rationale behind setting up the plant in Punjab Mr. Sammir Dattani said, “The Punjab facility is a game-changer for us. It not only brings us closer to key textile hubs like Ludhiana and Panipat but also enhances our ability to serve customers with just-in-time supply, reducing logistics costs.”
Current Business Scenario
With over two decades of experience, Sanathan Textiles has established itself as one of India’s leading yarn manufacturers. The company specialises in three key yarn verticals: Polyester Filament Yarns, Cotton Yarns, and Yarns for Technical Textiles. Its comprehensive product portfolio caters to a diverse array of industries, including apparel, home textiles, automotive, defense, logistics, travel and sports and athleisure. Driven by a strong focus on quality and innovation, Sanathan Textiles provides reliable, tailor-made yarn solutions that address the specific requirements of each sector.
The company’s existing manufacturing facility in Silvassa continues to serve western India and southern India and international markets with a keen focus on exports. This facility is equipped with advanced technology, including automated systems for warehousing, transportation, and package handling.
Additionally, the upcoming greenfield expansion in Punjab is designed to cater to the growing textile demand in North India. The Punjab facility is envisioned to be a state-of-the-art operation, incorporating cutting-edge automation and technological advancements to strengthen our manufacturing capabilities further.
Diversified Product Portfolio
Sanathan Textiles has positioned itself as a one-stop solution in the textile industry, manufacturing products across three key verticals: polyester filament yarns, cotton yarns, and yarns for technical textiles.
“Our diversification across polyester filament yarns, cotton yarns, and technical textiles allows us to remain resilient and adaptable in an evolving textile landscape.”, added Mr. Sammir Dattani.
The company’s diversified approach has given it a competitive edge in the market, enabling it to serve a wide range of industries, including apparel, home textiles, automotive, and industrial applications.
- Polyester Filament Yarns : As the company’s largest revenue segment, polyester filament yarns contribute around 77% of total sales. Sanathan’s integrated manufacturing process allows it to produce value-added yarns such as draw-texturized yarns, air-texturized yarns, twisted yarns, dope-dyed colored yarns, and stretch yarns.
- Cotton Yarns : Cotton yarns form 19% of the company’s revenue. Sanathan focuses on premium compact cotton yarns, particularly finer counts like 60s and 80s, catering to high-end home textiles and apparel manufacturers. A further investment of INR 400 crores has been planned for a new cotton yarn facility, which will be implemented post the first phase of the Punjab expansion.
- Technical Textile Yarns : Technical textiles are an emerging growth segment for Sanathan, currently contributing about 4% of revenues. With increasing government incentives and rising industry demand, the company is doubling its technical textile yarn capacity from 9,000 tons to 18,000 tons as part of the Punjab expansion plan. These specialized yarns are used in industrial applications such as automotive fabrics, medical textiles, and geotextiles.
Mr. Paresh Dattani says, “By nearly doubling our polyester filament yarn capacity, we are well-positioned to cater to the increasing demand from apparel, home textiles, and industrial applications across domestic and international markets.”
Investment and Capacity Expansion
The greenfield facility in Punjab is one of the most ambitious projects in the Indian textile sector. The plant will cover a massive 23 lakh square feet of built-up space. The facility, which began construction in December 2023, is expected to be operational by first quarter of FY26.
Key Highlights of the Punjab Facility:
- Phase 1 Production Capacity: 350 tons per day, ramping up to 700 tons per day within a few months of operation.
- Phase 2 Expansion: Capacity increase to 960 ons per day by FY 2026.
- Technical Textile Growth: Doubling capacity from 9,000 tons to18,000 tons anually.
Financial Performance and Growth Outlook
Sanathan Textiles has demonstrated robust financial growth, with its nine-month FY25 revenue reaching INR 2,266 crores, reflecting a steady increase in sales volumes and improved margins. EBITDA for the period stood at INR 195.17 crores, up from INR 147.48 crores in the previous year. The company’s PAT has also seen substantial growth, reaching INR 116.80 crores compared to INR 81.59 crores for the 9 months period, which ended on December 31st, 2024.
The company has successfully utilized its recent IPO proceeds to strengthen its financial position. Out of the INR 300 crores raised, INR 160 crores were allocated to debt repayment, making the existing operations at Silvassa nearly debt-free. Additionally, INR 140 crores were used to repay term loans for its subsidiary, Sanathan Polycot Private Limited, while the remaining funds were designated for general corporate purposes.
Strengthening India’s Domestic Textile Ecosystem
Sanathan Textiles’ expansion aligns with India’s broader textile industry growth, supported by government policies such as the Production Linked Incentive (PLI) scheme for MMF textiles, the Cotton Mission, and increased investments in technical textiles. With global brands like Decathlon, Nike, and Adidas increasing local sourcing, the demand for high-quality yarn is growing exponentially.
Moreover, with new PTA manufacturing units from Indian Oil and GAIL set to increase raw material availability, India’s textile supply chain is becoming more self-reliant. Sanathan’s investment in Punjab perfectly complements this trend, enhancing raw material accessibility and reducing dependency on imports.
Sustainability and Green Manufacturing Initiatives
Sustainability is at the core of Sanathan Textiles’ growth strategy. The Punjab facility will integrate environmentally responsible manufacturing practices, further strengthening the company’s commitment to green initiatives.
- Zero Liquid Discharge: All wastewater is treated and recycled.
- Renewable Energy: Sanathan Textiles meets a significant portion of its energy needs through solar power capacity of 2.35 MW and plans for further expansion to enhance its renewable energy footprint.
- Use of Husk for Heating: Instead of conventional fuels, the plant will use rice husk, an abundantly available agricultural waste, reducing its carbon footprint.
- Dope-Dyed Yarns: Eliminating conventional dyeing processes, these yarns reduce water consumption and pollution.
- Reusable Packaging: The company aims to eliminate cartons by shifting to reusable pallets, significantly reducing packaging waste.
- Sustainable Yarn: Sanathan Produces high-quality recycled polyester yarns made from PET waste, minimizing the environmental impact and promoting a circular economy by recycling textile waste into useable yarns “Sustainability is embedded in our growth strategy. From renewable energy use to zero liquid discharge and dope-dyed yarns, we are committed to reducing our carbon footprint while delivering high-quality products.”, added Mr. Sammir Dattani.
Innovation and R&D: Driving the Next Phase of Growth
Sanathan Textiles continues to invest in research and development to deliver innovative and value-added products. With a dedicated R&D team, the company is developing advanced yarns such as fire-retardant yarns, Sanathan dry-fit and Sanathan Dry Cool a moisture-wicking yarns, and Sanathan S-flex a four-way stretch yarn without spandex. The upcoming Punjab facility will also house a state-of-the-art R&D center, further enhancing the company’s ability to develop cutting-edge products for diverse applications, including apparel, automotive, and home textiles.
“Sanathan Textiles has always been at the forefront of innovation. Our continued investments in R&D and value-added yarns will enable us to stay ahead in a highly competitive global textile industry,” added Mr. Paresh Dattani.
Future Plans and Strategic Vision
Sharing the strategic vision of the company, the Company expects strong financial performance and is confident of surpassing INR 7,500 crores in revenue in the coming years, driven by efficiency, innovation, and market expansion.
Sanathan Textiles has a well-defined roadmap for expansion beyond its current projects. After commissioning phase one of the Punjab plant in FY26, the company will move forward with its INR 400 crore cotton yarn expansion. Following this, phase two of the polyester expansion will take place in FY28. With these expansions, Sanathan aims to cross INR 7,500 crores in revenue in the coming year, with a focus on enhancing margins through product innovation and value-added offerings.
The company is also exploring downstream opportunities, particularly in technical textiles, to further integrate into the textile value chain. As part of its long-term vision, Sanathan is committed to driving growth through automation, process efficiency, and continuous R&D efforts.
Sanathan Textiles is on an ambitious growth trajectory, backed by strategic investments, a strong product portfolio, and a commitment to sustainability. The upcoming Punjab facility is set to be a game-changer, improving supply chain efficiencies and strengthening its market position. With a clear focus on innovation and expansion, Sanathan is well-poised to capitalize on the growing opportunities in the textile industry, both domestically and internationally.
