Sanathan Textiles Achieves 96% Capacity Utilization at Punjab Facility

Sanathan Textiles has successfully completed the Phase I ramp-up at its Punjab manufacturing facility, achieving approximately 96% capacity utilization of its installed polymerisation capacity. The company announced this milestone through its wholly owned subsidiary, Sanathan Polycot Private Limited, marking significant progress in its strategic expansion initiative.

Operational Excellence and Capacity Achievement

The Punjab facility's Continuous Polymerisation line, commissioned on August 27, 2025, has reached near-full utilization with strong execution capabilities and robust demand absorption. The plant currently operates at 96% of its Phase I installed capacity, demonstrating the company's operational discipline and market positioning strength.

Facility Performance:	Details
Current Capacity Utilization:	96%
Phase I Capacity:	350 tonnes per day
Commissioning Date:	August 27, 2025
Planned Phase II Capacity:	700 tonnes per day

Strategic Growth Platform Enhancement

The successful Phase I completion positions Sanathan Textiles to advance its expansion roadmap, including progression towards Phase II development. This expansion is expected to further enhance polymerisation capacity and strengthen the company's position as an integrated and diversified polyester yarn manufacturer in Punjab.

Executive Commentary on Achievement

Commenting on this milestone, Mr. Sammir Dattani, Executive Director of Sanathan Textiles Limited, stated: "We are proud to have achieved near-full utilisation at our Punjab facility. This milestone reflects our strong operational discipline, market positioning, and the growing demand from North India's textile ecosystem. Despite ongoing geopolitical challenges, including the West Asia conflict, we were able to complete our ramp-up of Phase I, reflecting the underlying resilience and execution strength of our business."

Market Position and Future Outlook

The Punjab plant serves as a strategic addition to Sanathan Textiles' manufacturing footprint, enhancing the company's ability to serve customers efficiently while improving cost competitiveness. With over three decades of operations, the company maintains a strong presence across polyester filament, cotton yarn, and technical textiles segments, serving over 7,000 customers through 400+ distributors across India and exports to around 27 countries.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.70%	+1.31%	+7.27%	-15.09%	+10.84%	+9.36%

Sanathan Textiles has formalized its strategic entry into renewable energy through an official regulatory announcement. The company's wholly-owned subsidiary, Sanathan PolyCot Private Limited (SPPL), has entered into agreements to acquire a 26% stake in Serentica Renewables India 33 Private Limited for ₹48 crore.

Official Acquisition Details

The acquisition was announced through a formal filing under Regulation 30 of SEBI Listing Regulations. SPPL has signed both a Share Subscription and Shareholders' Agreement (SSHA) and a Power Supply and Consumption Agreement (PSCA) to facilitate the transaction.

Parameter:	Details
Investment Amount:	₹48 crore
Stake Acquisition:	26%
Target Company:	Serentica Renewables India 33 Private Limited
Investing Entity:	Sanathan PolyCot Private Limited
Power Capacity:	32 MW
Transaction Structure:	Tranches-based acquisition

Target Company Profile

Serentica Renewables India 33 Private Limited was incorporated on June 29, 2025, under the Companies Act, 2013. The company operates as a subsidiary of Serentica Renewables India Private Limited and specializes in developing and operating renewable energy projects, including solar and wind power generation. The entity is currently setting up ISTS-connected captive power projects across India.

Strategic Objectives

The acquisition serves multiple strategic purposes for Sanathan Textiles. The primary objective is to secure long-term, cost-effective renewable power supply for SPPL's manufacturing operations under the Captive User Framework. This arrangement will provide the company with reliable access to clean energy while supporting its sustainability goals and reducing emissions intensity. The investment also offers potential long-term energy cost optimization benefits for the textile manufacturer's operations.

Transaction Structure and Timeline

The ₹48 crore consideration will be paid in one or more tranches according to the Share Subscription and Shareholders' Agreement terms. The acquisition is subject to customary conditions precedent and regulatory approvals, with completion expected in line with agreed tranche timelines. The company has confirmed this is not a related party transaction, with no promoter or group company interests in the target entity.