About Company

• Sanathan Textiles was originally incorporated on 10th October, 2005. Sanathan is one of the few companies in India with presence across the polyester, cotton and technical textile (which find application in multiple end-use segments including automotive, healthcare, construction, sports and outdoor, and protective clothing) sectors and based on their operating income, they had a market share of 1.7% in the overall Indian textile yarn industry as of FY2024.

• Company’s business is divided into 3 separate yarn business verticals, consisting of: Polyester yarn products, Cotton yarn products, and Yarns for technical textiles and industrial uses. Currently, all the 3 yarn verticals are housed under a single corporate entity.

• As on September 30, 2024, they have more than 3,200 active varieties of yarn products (i.e. yarn products manufactured by them during the period April 1, 2021 to September 30, 2024) and more than 45,000 stock keeping units (SKUs), and capability to manufacture a diversified product portfolio of more than 14,000 varieties of yarn products and more than 190,000 SKUs that are used in various forms and for varied end uses.

• They also have a high share of value-added products such as dope dyed, superfine / micro, functional, industrial and technical yarn, cationic dyeable and specialty yarn which are produced after extensive in-house research.

• As on June 30, 2024, their facility at Silvassa had a total installed capacity of 223,750 MTPA across the 3 yarn verticals. Their facility is designed with ‘Zero Liquid Discharge Solution’, where no industrial wastewater is discharged into surface waters, thereby minimizing environmental pollution. They also manufacture products from recycled materials which are sold under the brand ‘Sanathan Reviro’.

• From April 1, 2021, to June 30, 2024, they catered to 20,066 customers out of which 983 customers were new customers.

• Further, during June 30, 2024, Fiscal 2024, and Fiscal 2023, the company exported its products to 14, 27 and 29 countries, respectively. As on June 30, 2024, they had more than 925 distributors in 7 countries comprising India, Argentina, Singapore, Germany, Greece, Canada and Israel. On January 2, 2024, they were accorded the status of a ‘Three Star Export House’.

Strengths

Competitive Strength

• One of the few companies (amongst the peer group) in India with presence across the polyester, cotton and technical textile sectors;

• Focus on the product development of new products, through process innovation;

• Fully integrated Yarn manufacturing plant set up at a strategic location with equipment supplied by domestic and globally renowned players;

• Long standing association with leading consumer brands with a low customer concentration;

• Deep knowledge and understanding of optimal product assortment and strong supplier network enabling procurement at predicable and competitive pricing, leading to an overall efficient cycle;

• Healthy financial performance;

• Experienced management team with a proven track record.

Business Strategies

• Expanding the manufacturing capacity;

• Enhance value addition in existing products and development of new products;

• Harnessing digitization and technology in production processes with a focus on energy efficiency and sustainable practices.

Company Promoters

Company Financials

Sanathan Textiles Limited's revenue decreased by -11% and profit after tax (PAT) dropped by -12% between the financial year ending with March 31, 2024 and March 31, 2023.

Objects of the Issue

The company proposes to utilise the Net Proceeds towards the following objects:

1. Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the Company;
2. Investment in our subsidiary viz. Sanathan Polycot Private Limited, for repayment and/ or pre-payment, in full or part, of certain borrowings availed by our subsidiary viz. Sanathan Polycot Private Limited; and
3. General corporate purposes.