Plans Rs 400-500 million phased capex; sees India gaining from global sourcing diversification; Q1 PAT rises 153 per cent.
Meenakshi India, a manufacturer of premium apparel for international brands, plans to more than double its manufacturing capacity to 3.8 million pieces by FY30 from around 1.8 lakh pieces currently, supported by phased investments of around Rs 400-500 million as the company expects demand for Indian apparel manufacturing to strengthen amid global sourcing diversification.
The company plans to add two manufacturing units in phases, depending on demand. The first unit is expected to become operational around FY28, while the second is targeted for FY30. The company expects to progressively increase capacity utilisation, with utilisation targeted at around 70 per cent in FY27.
The expansion comes as global apparel brands increasingly diversify sourcing under the China Plus One strategy, creating opportunities for Indian manufacturers with established capabilities, quality standards and long-standing relationships with international customers.
“We have a unique opportunity to emerge as one of the world’s preferred apparel sourcing destinations. For the first time in many years, multiple structural forces are converging in India’s favour,” said Ashutosh Goenka, Chairman and Managing Director, Meenakshi India.
Meenakshi India has set a target of achieving Rs 5 billion revenue and Rs 650 million PAT by FY30. Management has described the targets as conservative, taking into account the evolving trade environment and the fact that key free trade agreements are yet to become fully operational.
“That is a conservative figure. We should be able to achieve this… We have actually kept these things in mind and kept a conservative target. We are hopeful of surpassing these figures,” Goenka said during the company’s Q1 FY27 earnings call.
The company expects its planned capacity addition to be supported by rising demand. Management said it sees demand increasing substantially in India and plans to add manufacturing capacity progressively in line with market requirements.
Meenakshi India reported a 153 per cent year-on-year increase in consolidated PAT to Rs 70.12 million for Q1 FY27, compared with Rs 20.81 million in the year-ago quarter. Revenue from operations stood at Rs 320.24 million, against Rs 330.39 million in Q1 FY26.
The company’s textile segment reported operating profit of Rs 30.43 million, compared with Rs 2.8 million in the corresponding quarter last year.
The company said the improvement in the core garment business was particularly significant, with the business returning to positive operating performance during the quarter after reporting an operating loss in the year-ago period.
“The corrective measures taken over the past year have started yielding results, and the fundamentals of our business are steadily improving,” Goenka said.
The planned Rs 400-500 million capex will be undertaken in phases through FY30. The company expects its first new manufacturing unit to be operational around FY28, while the timing of the subsequent expansion will be aligned with demand.
The company is targeting an EBITDA margin of around 17 per cent by FY28, with margins expected to move towards pre-tariff levels as the business recovers from the impact of higher US tariffs.
Alongside capacity expansion in India, Meenakshi India is building geographical flexibility in its manufacturing operations to manage tariff and geopolitical risks.
The company has entered into a contract manufacturing memorandum of understanding with an existing factory in Sri Lanka, providing customers with an alternative country-of-origin option in the event of adverse tariff developments. It is also evaluating potential manufacturing facilities in Nepal and Vietnam as part of its longer-term geographical diversification strategy.
The company said its US customer base has remained largely intact despite tariff-related challenges, although volumes have moderated due to tariffs and customer inventory levels. Management said it worked with customers on pricing and discounts to help absorb part of the increased cost and retain business.
Meenakshi India is also looking to expand its presence in Australia, Japan and Canada, with the company reporting growth in its Canadian business over the past year.
The company operates primarily in the premium bottom-wear and outerwear segments and is expanding into adjacent categories including women’s wear, outerwear and athleisure. Unlike mass-market apparel manufacturing, the company focuses on premium products where sourcing decisions are driven by quality, product complexity, flexibility, technical expertise, compliance and long-term customer relationships.
Meenakshi India Ltd is headquartered in Chennai. The company specialises in premium bottom-wear and outerwear manufacturing for international brands and provides end-to-end apparel manufacturing solutions.