Filatex India has announced that its wholly owned subsidiary, Texfil Private Limited, signed a Memorandum of Understanding (MoU) on December 11, 2025, with Indeca Sporting Goods Pvt Ltd, an entity of Decathlon Group, France. The partnership focuses on expanding the use of high-quality recycled polyester in sports apparel through innovative textile-to-textile recycling technology.

MoU Details and Ecosis Technology

The strategic agreement centers around Texfil's proprietary chemical recycling process based on glycolysis that preserves polyester quality. The recycled chips produced through this technology are marketed under the trademark "Ecosis," representing a breakthrough in sustainable textile manufacturing.

Production Capacity and Commercial Plans

Texfil currently operates an 800 kg/day pilot plant for its Ecosis recycled polyester production. The company is establishing a commercial facility with a significantly larger capacity of 26,750 MTPA (metric tonnes per annum), expected to be commissioned in September 2026.

Collaboration Framework

Under the MoU, Decathlon will conduct structured trials of Ecosis recycled polyester chips and yarn with its network of manufacturing partners in India. The partnership also explores establishing a system to channel suitable pre-and post-consumer polyester textile waste from Decathlon Sports India's sourcing ecosystem back to Texfil for recycling.

Leadership Perspectives

Mr. Madhu Sudhan Bhageria, CMD of Filatex, emphasized the collaboration's focus on circularity and sustainable material innovation, stating that "Ecosis is built on the belief that polyester textiles should not be treated as waste." Mr. Deepak D'Souza, Production Director Southwest Asia at Decathlon, highlighted the partnership's alignment with responsible sourcing innovation and sustainability priorities.

This MoU represents a significant step toward creating a truly circular economy in textiles, transforming discarded end-of-life textiles back into new, high-quality chips and yarns while reducing dependence on virgin resources.

Filatex India has emerged victorious in a significant legal battle concerning GST refund claims. The Gujarat High Court has quashed show cause notices issued by the Joint Commissioner of CGST, which sought to recover GST refund claims totaling Rs. 166.79 crores from the company.

Key Highlights

• The Gujarat High Court's judgment favors Filatex India, nullifying two show cause notices.
• The disputed amount of Rs. 166.79 crores relates to GST refund claims for inverted duty structure.
• The period under scrutiny spans from January 2018 to February 2022.

Details of the Case

The case involved two separate show cause notices:

Filatex India had proactively filed writ petitions with the Gujarat High Court against both notices. The court had previously granted interim stays on these matters, demonstrating the company's commitment to resolving the issue through proper legal channels.

Resolution and Impact

The Gujarat High Court's decision to quash the show cause notices marks a significant victory for Filatex India. This ruling effectively puts an end to the potential recovery of Rs. 166.79 crores in GST refunds, which could have had a substantial impact on the company's financials.

Timeline of Events

• The Gujarat High Court issued its judgment quashing the show cause notices.
• Filatex India received certified copies of the favorable judgment at 11:30 AM.

This resolution provides clarity and closure to a prolonged legal matter, potentially allowing Filatex India to move forward with greater financial certainty. The company's success in this litigation may also set a precedent for similar cases in the textile industry regarding GST refunds on inverted duty structures.

Investors and stakeholders of Filatex India can view this development as a positive outcome, eliminating a significant financial risk that had been looming over the company. The resolution of this matter may contribute to improved investor confidence and potentially impact the company's financial planning and operations going forward.

As always, investors are advised to consider this information alongside other financial and operational aspects of the company when making investment decisions.