Shri Techtex plans Rs 45 crore raise for expansion
The company had been on an excellent growth trajectory and had established a strong foundation in terms of products, capacities, clientele, and geographical reach during the first decade of its operations.
Shri Techtex, a manufacturer and exporter of technical textiles experiencing rapid growth, is in the process of raising capital to support its future expansion plans. It is planning to allocate the funds raised from the issue to various key initiatives, which include the construction of a factory shed (worth Rs 3.71 crore), commissioning of a solar plant (worth Rs 4.89 crore), purchasing machinery (worth Rs 6.31 crore), meeting working capital requirements (worth Rs 15.31 crore), and fulfilling general corporate purposes, including issue expenses. The company’s business being highly energy-intensive and requiring substantial working capital, this capital infusion is expected to facilitate the expansion of margins through value-added products, reduced energy costs, and the repayment of high-cost debt, leading to a relief in interest burden.
Hanskumar Agarwal, Executive Director, Shri Techtex, expressed his optimism about the public issue. He stated that the company had been on an excellent growth trajectory and had established a strong foundation in terms of products, capacities, clientele, and geographical reach during the first decade of its operations. Transitioning to a public company, he believes, opens up new horizons of ambitions for the company.
The company specialises in manufacturing PP non-woven fabric in various sizes and densities, ranging up to 4.5 metres in size and 15 GSM to 800 GSM. Non-woven fabric finds particular application in fields and industries that require disposable or single-use products, such as organic farming, healthcare, hospitals, nursing homes, home furnishing, vehicle upholstery seat fabrication, mattress & furniture covering, ecological packaging, and industrial and consumer goods. Shri Techtex’s manufacturing facility is strategically located in Simaj of Dholka Taluka in the Ahmedabad District of Gujarat, providing close proximity to major transport hubs. Covering an area of 41,548 sq metres, the manufacturing facility has an installed capacity of 3600 MT of PP non-woven fabric per annum. The company’s future expansion plans involve the addition of new products in the technical textile segment. With the incorporation of new machinery, the installed capacity is expected to increase, allowing the manufacturing of an additional 1200 tonne per year and an extra 24 lac sq metres with this expansion.