GHCL Textiles Limited has committed a capital expenditure of Rs.1,000 crore towards the expansion of its spinning and knitting operations. Of the Rs.1,000 crore investment planned, GHCL Textiles has already deployed Rs.500 crore towards the addition of 25,000 spindles and 40 circular knitting machines. This expansion is a key step in the company’s transition from a yarn-centric business to an integrated fabric and garment-ready operation. The new capacities will enhance production volumes, product diversity, and speed to market, especially in knitted fabrics—an area witnessing rising global demand.
Forward integration into weaving and dyed fabric manufacturing is also under active consideration, positioning the company to serve a broader customer base across home textiles, apparel, and industrial fabrics. The reorganization of its Kaveri section at the Manaparai unit is expected to unlock further operational efficiencies, reduce conversion costs, and contribute to margin improvement.
Solid Performance in FY25
GHCL Textiles reported strong financial results for FY25, with total revenue reaching Rs.1,168 crore, an increase of 10% year-on-year. EBITDA stood at Rs.117 crore, with an improved EBITDA margin of 11%, while profit after tax rose by 123% to Rs.56 crore. The company’s Q4 performance demonstrated resilience, aided by stabilizing cotton prices, favourable yarn spreads, and sustained export demand.
Strategic Priorities
As part of its strategic roadmap, GHCL Textiles is focused on becoming an end-to-end solution provider in the textile value chain through backward and forward integration. The company’s strategic priorities include expanding knitting and fabric processing capacities, improving cost efficiency, increasing the share of value-added products, and enhancing its global customer base.
GHCL Textiles currently operates with a robust manufacturing base that includes 2 lakh ring spindles, 3,320 rotors, 480 vortex positions, and 5,760 TFO spindles, enabling it to produce a diverse range of yarns. Its key product offerings span cotton, synthetic and blended yarns, including compact, slub, core-spun, double yarns, mélange, and value-added synthetic blends. The company also manufactures knitted fabrics, leveraging its expanding circular knitting infrastructure. These offerings are well-aligned with evolving global demand for innovative, sustainable, and high-performance textile materials, positioning GHCL Textiles as a preferred partner for leading brands and manufacturers.
Commitment to Sustainability
Sustainability is a key pillar of GHCL Textiles’ growth philosophy. The company meets 72% of its energy needs through renewable sources, backed by a 62 MW green energy capacity. In addition to reducing its carbon footprint, this green energy initiative provides cost savings and long-term stability in power procurement. The company’s broader ESG strategy also includes efficient water management, responsible sourcing, and waste minimization practices—aligned with global sustainability goals.
Outlook
Despite short-term global trade uncertainties, GHCL Textiles remains optimistic about future growth, driven by supportive government policies, renewed global demand, and its own strategic transformation. The Rs.1,000 crore investment initiative is expected to further cement its position as one of India’s most future-ready textile companies.
