GHCL Textiles unveils Rs 10 billion plan to boost spinning and knitting
The company is also actively exploring forward integration into weaving and dyed fabric manufacturing.
GHCL Textiles has embarked on a significant transformation journey, allocating a capital expenditure of Rs 10 billion to expand its spinning and knitting capabilities. As part of this initiative, the company has already invested Rs 5 billion in the installation of 25,000 spindles and 40 circular knitting machines. This development marks a pivotal shift from a yarn-centric model to a fully integrated operation capable of fabric and garment production. The additional capacity is expected to boost production volumes, diversify the product portfolio, and accelerate speed to market—particularly in knitted fabrics, a segment witnessing increasing global demand.
The company is also actively exploring forward integration into weaving and dyed fabric manufacturing. This move would enable GHCL Textiles to cater to a wider range of customers across home textiles, apparel, and industrial fabrics. Additionally, the reorganization of its Kaveri section at the Manaparai unit is projected to enhance operational efficiencies, lower conversion costs, and support margin growth.
Strong financial performance in FY25
In FY25, GHCL Textiles delivered a solid financial performance, reporting total revenue of Rs 11.68 billion, reflecting a 10 per cent increase over the previous year. The company recorded an EBITDA of Rs 1.17 billion, achieving a margin of 11 per cent. Profit after tax surged by 123 per cent to Rs 560 million. The fourth quarter results underscored the company’s resilience, supported by stabilising cotton prices, favourable yarn spreads, and steady export demand.
Strategic roadmap and capabilities
As part of its strategic roadmap, GHCL Textiles has set its sights on becoming an end-to-end solutions provider within the textile value chain by pursuing both backward and forward integration. The company’s priorities include expanding its knitting and fabric processing capacities, enhancing cost efficiencies, increasing the proportion of value-added products, and growing its international customer base.
GHCL Textiles currently operates a robust manufacturing setup comprising 2 lakh ring spindles, 3,320 rotors, 480 vortex positions, and 5,760 TFO spindles. This infrastructure enables the production of a wide array of yarns, including cotton, synthetic, and blended varieties. Its offerings span compact, slub, core-spun, double yarns, mélange, and value-added synthetic blends. The company also manufactures knitted fabrics through its expanding circular knitting capacity, positioning itself in alignment with global demand for innovative, sustainable, and high-performance textiles.
Sustainability at the core
Sustainability continues to be a cornerstone of GHCL Textiles’ growth strategy. The company sources 72 per cent of its energy requirements from renewable sources, supported by a green energy capacity of 62 MW. This initiative not only lowers its carbon footprint but also delivers cost savings and long-term power procurement stability. Its comprehensive ESG framework includes water conservation, responsible sourcing, and waste minimization, in line with global sustainability standards.
Positive outlook
Despite on-going uncertainties in global trade, GHCL Textiles remains confident about its growth trajectory. The company believes that supportive government policies, a rebound in global demand, and its on-going strategic transformation will fuel its progress. The Rs 10 billion investment initiative is expected to further strengthen GHCL Textiles’ position as one of India’s most future-ready textile enterprises.
