Textile companies with a strong focus on recycling are expanding rapidly and securing funds through Initial Public Offerings (IPOs). Recently, two such companies entered the stock market to raise capital for growth.
Divyadhan Recycling Industries Limited (DRIL), based in Mumbai with a Baddi, Himachal Pradesh plant, specialises in polyester yarn spinning and home textiles. The company, led by Pratik Gupta and Varun Gupta, seeks to raise INR 24.17 crore, following a total revenue of INR 59.12 crore in the fiscal year ending March 31st. The funds will support capital expenditure and general corporate purposes.
Similarly, Ludhiana-based Paramount Dye Tec Ltd, led by Kunal Arora and Palki Arora, is a manufacturer of recycled synthetic yarns, acrylic fibres, and hand-knitting yarns. The company reported INR 23.67 crore in revenue last year and plans to expand its manufacturing capacity to meet growing demand. According to its Red Herring Prospectus, the expansion will allow Paramount to increase production, achieve economies of scale, and enhance profit margins. It also aims to diversify its product portfolio, offering blended yarns for apparel manufacturers of heavy GSM T-shirts, polos, shorts, and lowers. This strategy will reduce seasonal risks and attract a wider customer base, from SMEs to global fashion brands.
Parvinder Singh, Co-founder of the Global Alliance for Textiles Sustainability Council and Director at Aadi Sustainability Solutions, Panipat, believes India’s recycling industry has significant growth potential. He notes that while the textile sector’s raw material demand is increasing by nearly 6% annually, cotton production growth lags at just 2-3%. With limited petroleum reserves affecting polyester production, recycling has become the most viable solution. Singh highlights India’s leadership in recycling compared to other manufacturing hubs, stating that the country’s advanced recycling capabilities offer substantial business opportunities for those with the right expertise.
