Sumeet Industries Limited has officially announced the successful acquisition of Nakoda Limited's polyester chips manufacturing assets for ₹23.47 crore through a slump sale transaction. The company issued a press release under Regulation 30 of SEBI regulations, confirming its position as the highest bidder (H1 Bidder) for the Phase-3 Chips Manufacturing Plant assets.

Official Acquisition Confirmation

The Board of Directors unanimously approved the Letter of Intent dated 11th March 2026 during their meeting held on 17th March 2026. The acquisition involves Nakoda Limited's complete polyester chips manufacturing facility located at Village Karanj, Tal Mandvi, District Surat, Gujarat.

Strategic Capacity Enhancement

The acquisition significantly strengthens Sumeet Industries' polyester chips manufacturing capabilities, adding approximately 400 tons per day of incremental capacity. This expansion aligns with the company's existing business operations in polyester manufacturing, including Pet Chips, Partially Oriented Yarn (POY), and Fully Drawn Yarn (FDY).

Management Commentary and Vision

Mr. Pratik R. Jaju, Managing Director, emphasized the strategic importance of this acquisition: "This acquisition strengthens our presence in the polyester value chain and expands our Polyester Chips manufacturing capacity. The addition of this facility enhances our production scale and supports better integration with our downstream yarn business including POY and FDY."

Company Performance and Background

Sumeet Industries, incorporated in 1988, operates as an integrated polyester manufacturer under the Eagle Group following the NCLT order dated 16th July 2024. The company reported strong financial performance in 9M FY26 with total income of ₹786.83 crore, EBITDA of ₹46.09 crore, and Profit After Tax of ₹26.88 crore.

Regulatory Compliance and Next Steps

The transaction was conducted under the Corporate Insolvency Resolution Process following the Insolvency and Bankruptcy Code 2016. The acquisition does not constitute a related party transaction and is subject to necessary regulatory approvals. The company expects completion within 180 days from the Letter of Intent signing date.

Sumeet Industries Limited conducted its Q3FY26 earnings conference call on February 13, 2026, presenting financial results and strategic updates to investors and analysts. The integrated polyester manufacturer, taken over by the Eagle Group in 2024, demonstrated steady performance despite challenging market conditions.

Financial Performance Overview

The company delivered consistent results across key financial metrics during the quarter and nine-month period.

Managing Director Pratik R. Jaju highlighted that profit from continuous operations increased by 205% compared to the previous year, excluding the exceptional profit of INR170 crores recorded in 2025 related to liability waivers during the company takeover.

Operational Efficiency and Capacity Utilization

Sumeet Industries operates at over 95% capacity utilization across its manufacturing facilities in Surat. The company's integrated polyester manufacturing setup produces diversified products including PET chips, Partially Oriented Yarn, Fully Drawn Yarn, and poly-texturized yarn for apparel, home textiles, and industrial applications.

The management announced plans for capacity expansion of 30-40% through machinery upgrades and additional equipment installation. This expansion strategy aligns with the company's focus on improving production efficiency and serving growing market demand.

Strategic Initiatives and Market Expansion

The company outlined several strategic priorities for sustainable growth:

• Product Diversification: Focus on value-added products to improve margins
• Export Market Entry: Targeting Asian countries including Malaysia and Vietnam, plus African markets for polyester texturized yarn
• Renewable Energy: Installed 14 megawatt solar power plant with plans for further expansion to achieve 50% renewable energy usage
• Cost Optimization: Targeting 25% reduction in power costs through renewable energy initiatives

Rights Issue and Capital Allocation

Sumeet Industries announced a rights issue of approximately INR200 crores, expected to complete within three months. While specific utilization details await regulatory filing, management indicated the proceeds will support balanced objectives including financial strengthening and expansion initiatives.

Market Outlook and Growth Strategy

The company benefits from favorable trade dynamics and increasing demand in both domestic and international markets. Management expects 10-20% growth in export opportunities due to trade deals involving India, the US, and European Union, primarily through indirect exports via domestic customers.

Key focus areas for the next 12 months include cost reduction, new product introduction, machinery upgrades, and expanding the marketing team to capture new market segments. The company's integrated manufacturing setup and flexible production capabilities position it to respond effectively to changing customer requirements and market cycles.