Texel Industries to open geosynthetics plant in Gujarat

Ahmedabad, September 3 2021:

Texel Industries Ltd, which has more
than three decades of experience in the technical textiles, expects to start
commercial operations of its 10,080 MT facility for geosynthetics products at
Kheda, Gujarat by end of September 2021. The company is investing Rs 29.92
crore for this expansion and has already deployed Rs 14.73 crore from internal
accruals and borrowings. Post completion of the expansion, installed capacity
of the company will double to more than 19,000 MT per annum.

The company plans to raise up to Rs
12.49 crore from the rights issue which is open for subscription from 31 August
to September 14. Proceeds of the rights issue will be utilised to fund the
proposed expansion in Kheda facility.

Shailesh Mehta, Managing Director, Texel
Industries Ltd, said, “Expansion at our new facility in Kheda is going as
scheduled and we plan to start commercial operations by end of September 2021.
Post completion of the expansion, installed capacity of the company will double
to more than 19,000 MT per annum. Keeping in line with its continuous efforts
towards sustainability, Texel is now expanding its product mix to include
various new products such as Roof Tile Underlay, Lumber Wrap and a Floating
cover for water reservoirs. The floating cover is a cover for farm ponds and
water reservoirs, which prevents 30% loss of water through evaporation.”

Established in 1989, Texel Industries
Ltd is an ISO 9001:2015 certified company engaged in manufacturing of
tarpaulins and geomembranes with an experience of more than three decades. The
company manufactures a wide range of geosynthetic textile products which
includes tarpaulins, geomembranes, vermibed, geotank, geotube, grow bags
azollabed, and water proof membrane. Its products are used in agriculture,
aquaculture, horticulture, animal husbandry, civil engineering, water
harvesting, water conservation and disaster relief, landscaping, transportation
and waste management.

The company’s manufacturing facility is
located at Santej, Gandhinagar, Gujarat having an installed capacity of 9,000
MT per annum. The management has successfully turned around the company and was
able to rebuild stakeholder confidence with higher sales and profits, resulting
in it getting deregistered from BIFR in November 2016.  For the quarter ended June 2021 promoter
holding stands at 40.77% – a rise of 647 basis points from 34.3% from June
2020.

For FY20-21, the company reported sales
of Rs 82.79 crore and Net profit of Rs 2.13 crore. For the Q1FY22, the company
posted a healthy 51% growth in the net sales at Rs. 27.74 crore, Net Profit was
up 70% at Rs 75 lakh. The performance was achieved on the back of robust demand
on the domestic markets in the Tier 2,3 cities & rural areas post unlock.