Filatex India accelerates growth with ₹320 crore investment in capacity expansion and energy efficiency

As India’s textile industry pivots toward man-made fibres and circular sustainability, Filatex India Limited continues to lead the transformation with strategic investments and forward-thinking technology. A pioneer in polyester filament yarn manufacturing, the company is focused on building capacity, enhancing efficiency, and contributing to a greener, more responsible textile ecosystem. With a newly approved expansion project at Dahej and an innovative steam power distribution initiative, Filatex is well-positioned to drive long-term value and meet the evolving needs of global textile markets.

Strategic Expansion at Dahej: Scaling Core Capacity Filatex has announced expansion plan for its Dahej facility, significantly increasing its production capacity. The project now includes the addition of 19,800 MTPA of Partially Oriented Yarn (POY), 28,800 MTPA of Fully Drawn Yarn (FDY), and 14,400 MTPA of Draw Textured Yarn (DTY). The total investment outlay is ₹235 crores, and the new facilities are expected to be commissioned by August 2026. This expansion strengthens Filatex’s position as one of India’s largest integrated polyester yarn producers and aligns with rising domestic and export demand for synthetic fibres.

Steam Power Distribution Project: Circular Energy in Action In addition to the capacity expansion, the Board also approved a Steam Power Distribution Project aimed at utilizing the company’s surplus steam for external use. Approximately 70 tons per hour (TPH) of surplus steam generated from the captive power plant will be distributed to smaller companies and enterprises located nearby. With an investment of ₹85 crores, fully funded through internal accruals, the project is scheduled for commissioning by April 2026. It is expected to result in annual savings of around ₹60 crores. This initiative highlights Filatex’s commitment to sustainable industrial practices and efficient energy use while fostering collaboration within the local industrial ecosystem.

Financial Highlights

In FY25, the company recorded a revenue of ₹4,252 crore and an EBITDA of ₹258 crore, up from ₹239 crore in FY24. Profit after tax stood at ₹135 crore, reflecting a year-on-year growth of 22%. The company’s annual manufacturing capacity reached 4,10,040 MT, supported by strong capacity utilization and consistent operational efficiency.

Product Portfolio and Industry Reach

Filatex offers a comprehensive product portfolio that includes POY, FDY, DTY, polypropylene yarns, polyester chips, and narrow woven fabrics. These products cater to a wide spectrum of applications across apparel, women’s wear, home textiles, healthcare, athleisure, and various industrial uses. This product diversity allows Filatex to serve both mainstream and niche markets while responding to evolving consumer and industry demands.

Sustainability and Circular Economy Initiatives

Filatex is also driving the industry forward through its commitment to sustainability and innovation. The company has launched Ecosis, India’s first textile-to-textile circular recycling solution, which converts textile waste into regenerated yarn through a six-stage depolymerization and regeneration process. The pilot facility is being scaled up to handle 27,000 MTPA of recycled chip capacity. During FY25, Filatex sourced 26% of the power consumed at its Dahej facility from renewable sources, including solar and hybrid wind plants. Additionally, the company recycled 4.28 lakh kilolitres of water, accounting for 39% of its total consumption at Dahej. These initiatives not only improve operational sustainability but also enhance Filatex’s environmental, social, and governance (ESG) profile in global markets.

The Macro Opportunity: MMF Growth in India

Filatex’s growth strategy is aligned with broader macroeconomic trends favoring man-made fibres. Over 95% of global fibre growth in the past 15 years has come from synthetics. India, with its low per capita fibre consumption of 5.5 kg (compared to the global average of 11.2 kg), offers tremendous headroom for expansion. Policy support from the government through Production Linked Incentive (PLI) schemes, the National Technical Textiles Mission (NTTM), and the MITRA scheme further strengthens the business case for expanding in the MMF segment. Filatex is well-poised to capitalize on rising demand for high-performance synthetic yarns across diverse segments such as athleisure, medical textiles,
industrial fabrics, and more.

Growth with Purpose

With over three decades of manufacturing excellence, Filatex India Limited is not merely expanding capacity; it is reshaping the future of polyester yarn production through sustainable practices,
cutting-edge technology, and responsible growth. Backed by over ₹320 crores of new investments in capacity expansion and energy optimization, the company is well-positioned to drive the next
wave of transformation in India’s synthetic fibre market while meeting the expectations of global textile supply chains.