Sanathan Textiles Limited , a leading integrated yarn manufacturer in India, has marked a significant milestone in its expansion strategy with the commencement of commercial production at its new manufacturing facility in Wazirabad, Punjab. The company announced the start of Phase-1 operations, highlighting its commitment to growth and sustainable manufacturing practices.

Production Capacity and Expansion Plans

The new facility has initiated production with a Continuous Polymerisation (CP) line, starting at 350 tonnes per day. Sanathan Textiles expects to ramp up production to 700 tonnes per day within the next 3-4 months. Upon completion of Phase-2, the Punjab facility is projected to contribute 950 tonnes per day to the company's production capacity.

This expansion significantly enhances Sanathan Textiles' total installed yarn-manufacturing capacity:

Strategic Focus and Market Reach

The new Punjab facility is strategically positioned to cater to the textile market in North India, with a focus on building a strong local ecosystem and implementing green manufacturing practices. Meanwhile, the existing Silvassa facility will continue to serve both domestic and export markets, leveraging its proximity to India's western ports.

Company Profile

Sanathan Textiles Limited, with over two decades of experience, has established itself as a diversified yarn manufacturer specializing in:

1. Polyester Filament Yarns
2. Cotton Yarns
3. Yarns for Technical Textiles

The company boasts a diverse product portfolio of more than 3,200 yarn products and nearly 50,000 SKUs, catering to various industries including apparel, home textiles, automotive, defense, logistics, travel, and sports and athleisure. Sanathan Textiles serves over 7,000 customers through a network of 400+ distributors across India and exports to approximately 27 countries.

Future Outlook

With the commencement of operations at the Punjab facility, Sanathan Textiles reaffirms its commitment to timely execution, operational agility, and long-term value creation for its stakeholders. The company's focus on quality, innovation, and sustainable practices positions it well to meet the growing demand in the textile industry both domestically and internationally.

The management expressed gratitude to all stakeholders, employees, investors, and partners for their continued trust and support in achieving this significant milestone in the company's growth journey.

Sanathan Textiles Limited , a leading diversified and fully integrated yarn manufacturer, has announced its financial results for the first quarter, showcasing steady performance amidst a challenging market environment.

Financial Highlights

• Revenue from operations stood at INR 745.00 crores, up from INR 732.00 crores in the previous quarter.
• EBITDA reached INR 70.00 crores with margins at 9.30%.
• Profit After Tax (PAT) was reported at INR 40.00 crores, with margins at 5.40%.
• Sales volume for the quarter was 59,000 metric tons, while production stood at 57,000 tons.

Year-on-Year Performance

Despite the quarter-on-quarter growth, the company experienced a 4.50% year-on-year decline in revenue. This decrease was attributed to softening raw material prices and lower average sales prices.

Operational Update

Sanathan Textiles continues to operate at high capacity utilization at its Silvassa facility, which has a total manufacturing capacity of 2,23,000 metric tons per annum. The facility comprises:

• 2,00,000 tons of polyester yarn
• 14,000 tons of cotton yarn
• 9,000 tons of technical textile yarns

Punjab Facility Update

The company's new greenfield facility in Punjab, with a capacity of 3,46,000 metric tons per annum, is progressing well. Despite a slight delay due to an early monsoon, the facility is now set to commence commercial operations on August 27, 2025. This expansion will increase Sanathan Textiles' total polyester yarn capacity to 5,46,000 tons per annum.

Management Commentary

Paresh Dattani, Chairman and Managing Director, stated, "We maintain our guidance of INR 4,500.00 crores annual revenue and expect double-digit EBITDA margins between 10-11% for the full year."

Sammir Dattani, Executive Director, highlighted the shift towards man-made fibers, especially polyester, in the Indian textile industry. He noted, "The MMF segment contributes to 50% of the domestic fiber mix but is expected to grow significantly in the coming years."

Market Outlook

The management expressed confidence in the growing demand for polyester globally, predicting a growth rate of 3% to 5%. For India, they anticipate a more robust growth of 5% to 7% in the coming years, driven by the country's young population, e-commerce platforms, and the shift towards man-made fibers.

Future Plans

Sanathan Textiles is planning to double its technical textiles capacity from the current 9,000 metric tons per annum, with the full impact expected in FY27. Additionally, the company aims to add 72,000 spindles to its cotton yarn capacity, targeting full utilization by FY28.

In conclusion, despite facing some headwinds, Sanathan Textiles remains optimistic about its growth trajectory, backed by strategic expansions and a positive outlook for the man-made fiber segment in India.