Sanathan Textiles Targets Rs 5,000 Crore Topline For FY26 On Capacity Expansion
In the first phase, the plant will have a capacity of 2,55,000 metric tonnes per annum and give the company a topline of Rs 2,900 crore.
(Representative image. Source: NDTV Profit)
Sanathan Textiles Ltd. is set to commission its Punjab-based greenfield facility in the first quarter of fiscal 2026. Speaking to NDTV Profit, the company’s Chairman and Managing Director, Paresh Dattani, said that the new plant is likely to reach full capacity within two months of commissioning.
“As far as the Punjab facility is concerned, we are at the advanced stage of the plant coming up. We will be commissioning in the Q1 FY26, and we will be starting that in a phased manner and coming up to the full capacity in about month and a half or two months from commissioning,” he said.
“With this (Punjab facility) and the existing Silvassa facility, which is giving us Rs 3,000 crore in FY25 also, we should end the topline of FY26 at close to Rs 5,000 crore,” he added.
In the first phase, the plant will have a capacity of 2,55,000 metric tonnes per annum and give the company a topline of Rs 2,900 crore. In FY26, the unit will contribute 70% of the targeted topline, which amounts to Rs 2,000 crore, Dattani explained.
An additional 91,250 MTPA will be added in phase 2 by the end of FY27. Thus, the total capacity of the Punjab facility will be 3,46,750 MTPA or 950 MT per day, the top executive mentioned.
The company operates in three main verticals: polyester yarn products, cotton yarn products, and yarns for technical textiles. Sanathan Textiles is expanding across all three verticals to meet growing demand, the chairman said.
“With the growth in consumption, e-commerce, brand downstream, with the big brands coming to India and sourcing locally, and of course let us not forget globally, there is 'Bangladesh + 1' opportunity that India is poised to encash upon. All these things will require more yarns, so we are quite clear on our outlook in the coming years,” the top executive stated.
Currently, the product mix of the company comprises 80% polyester, 15% cotton, and 5% technical textiles. Referring to this year’s Union Budget, the top executive expressed confidence in the government’s support for all three segments.
As of Q1 FY25, Sanathan had an installed capacity of 2,23,750 MTPA at its Silvassa unit. Of this, 2,00,750 MTPA was polyester yarn, 14,000 MTPA was cotton yarn, and 9,000 MTPA was yarn for technical textiles.
By fiscal 2027, the company plans to expand its total capacity to 5,81,990 MTPA, with additions in the cotton yarn and polyester yarn verticals. It aims to increase the polyester capacity to 4,56,250 MTPA and the cotton yarn capacity to 24,950 MTPA by FY27, the top executive revealed.
Sanathan Textiles shares were trading 0.47% up at Rs 320.40 per share, compared to a 0.4% rise in the Nifty 50.
