Game-Changing Acquisition of Raj Rayon to Drive Market Leadership
SVG Fashions has cemented its position as India’s leading vertically and laterally integrated polyester textile manufacturer, catering to leading Indian and Global Apparel brands. With a focus on innovation, sustainability, and cutting-edge fabric technology, the company has built an impressive manufacturing infrastructure, producing some of the most advanced performance fabrics in the industry.
At the helm of this transformative journey is Mr. Rajkumar Agarwal, Managing Director of SVG Fashions, who has steered the company through multiple phases of growth and expansion. Under his leadership, SVG Fashions has evolved from humble beginnings to a fully integrated textile powerhouse, manufacturing fabrics for sportswear, casual wear, office wear, and luxury fashion.
In this exclusive story, we delve into SVG Fashions’ journey, product innovation, special fabric finishes, manufacturing capabilities, and commitment to sustainability, as shared by Mr. Rajkumar Agarwal.
The Journey from Trading to Textile Manufacturing
SVG Fashions’ legacy dates back over 40 years, with its origins rooted in the trading business started by Mr. Satyanarayan Agarwal in the 70s. What began as a modest fabric trading operation soon expanded into dyeing, weaving, and processing, leading to the acquisition of its first manufacturing unit in Ankleshwar in 1984. This acquisition was a defining moment, marking SVG’s entry into large-scale manufacturing.
Reflecting on the early days, Mr. Rajkumar Agarwal, who joined the business at a young age, recalls how learning on the factory floor played a crucial role in shaping his technical expertise. Despite being a commerce graduate, he immersed himself in dyeing processes, fabric quality control, and production operations, gaining firsthand experience in textile manufacturing.
The company’s strategy of backward and forward integration paved the way for sustained growth. SVG entered the knitting segment in the early 2000s, followed by a major move into polyester yarn manufacturing. This expansion enabled SVG to control raw material sourcing, ensuring consistency and quality in fabric production.
Strategic Focus on Polyester
SVG Textiles has deliberately chosen to focus on polyester fabrics, diverging from India’s traditionally cotton-dominated textile industry. This strategic decision was influenced by industry trends and the vision of early pioneers like Dhirubhai Ambani, who foresaw the potential of synthetic fabrics.
Polyester presents significant advantages, including durability, color retention, and adaptability. Unlike cotton, which has an established and saturated market, polyester offers growth potential and scalability. Recognizing this opportunity, SVG positioned itself as a leader in polyester fabric manufacturing, catering to both domestic and international markets.
Expansion Through Forward and Backward Integration
SVG’s journey has been marked by continuous expansions, driven by both forward and backward integration. Initially, the company’s operations were limited to processing, but over the years, SVG expanded into yarn texturizing, circular knitting, warp knitting, and weaving.
The company was among the first in India to invest in circular knitting machines for polyester. By sourcing high-quality machines from top manufacturers like Terrot (Germany), Pailung (Taiwan), and Runshang (China), SVG ensured superior production capabilities. The company also ventured into warp knitting and flat knitting, making it one of the few textile firms with expertise in four of the five primary fabric manufacturing processes.
The Game-Changing Acquisition: Raj Rayon Industries
A pivotal moment in SVG’s expansion was the acquisition of Raj Rayon Industries Ltd., a move that made SVG a fully integrated polyester manufacturer. Raj Rayon , Initially a struggling entity, was revived under the leadership of Mr. Sandiip Agarwwal. The plant’s capacity was tripled within a short period, with the production of high-quality POY and textured yarns.
This acquisition gave SVG better control over raw material sourcing and quality, strengthening its position in the market. Today, Raj Rayon’s polyester yarn meets international standards, and the company is actively working on further innovations in high-tech yarns and specialized fabric blends.
Following the acquisition, SVG revitalized Raj Rayon’s operations, investing 500crores in back to back expansions. Additionally, ₹500-600 crore is planned for further expansions over the next 2-3 years to enhance capacity and upgrade the product mix. The investment includes increasing POY capacity from 350 TPD to 400TPD, adding FDY capacities of 250TPD and DTY capacity from 125 TPD to 400 TPD. This expansion will include value added products like dope dyed yarns, cotton like yarns, micro deniers etc. which will enhance margins and drive profitability, leveraging SVG’s strong market presence and client base, including global brands like Asics, Adidas, Cult and Puma.
With these developments, Raj Rayon is targeting an ambitious ₹2,900 crore turnover by FY 2027, comprising:
- ₹1080 crore from POY/FDY
- ₹1,760 crore from DTY
- ₹136 crore from polyester chips
SVG’s expertise in high-margin fabrics and garment manufacturing ensures consistent demand for Raj Rayon’s fibers, reinforcing a vertically integrated business model.
Building a One-Stop Solution: End-to-End Manufacturing Capabilities
Today, SVG is one of India’s most advanced vertically integrated textile companies, offering an extensive range of yarn, knitted and woven fabrics, embroidery, dyeing, finishing, and garmenting. The company has built a world-class manufacturing ecosystem with impressive production capabilities:
- Continuous Polymerization – 12,000 metric tonnes per month
- POY (Partially Oriented Yarn) Production – 11,000 metric tonnes per month
- Texturizing – 4,000 metric tonnes per month
- Knitted Fabrics – 1,800 metric tonnes per month
- Woven Fabrics – 360,000 meters per month
- Embroidery – 300,000 meters per month
- Fabric Processing – 750 metric tonnes per month
- Garment Production – 100,000 garments per month
With state-of-the-art facilities, SVG ensures that every step of production is handled in-house, allowing for greater efficiency, cost control, and superior quality.
Product Innovation: High-Performance Polyester Fabrics
SVG Fashions has positioned itself as a leader in polyester-based performance fabrics, catering to multiple segments:
1. Sports & Activewear Fabrics
SVG creates high-performance knits designed for moisture-wicking, UV protection, and 4-way stretch, ensuring maximum comfort for athletes. These fabrics are commonly used in sports mesh, pique, and camo jacquard designs.
2. Casual & Lifestyle Fabrics
Long-lasting polyester fabrics with matte finishes, textured softness, and lightweight feel are developed for casual and athleisure wear.
3. Cotton-Look Polyester Fabrics
SVG has engineered peached polyester spandex single jersey knits that mimic the softness and breathability of cotton while maintaining the durability of polyester.
4. Office & Workwear Fabrics
Lightweight elastomultiester knits provide wrinkle resistance, shape retention, and all-day comfort, perfect for professional wear.
5. Luxury & Partywear Fabrics
High-gloss woven jacquards and circular knits with silky sheen, mechanical stretch, and rich textures cater to fashion-forward consumers.
Advanced Fabric Finishes & Special Properties
SVG Fashions has developed specialized fabric enhancements to meet evolving market demands. The company offers:
✅ Anti-Bacterial & Anti-Odor – Ensuring hygiene and freshness
✅ UV Protection – Shielding fabrics from sun damage
✅ 4-Way Stretch – For enhanced flexibility and movement
✅ Flame Retardant – Meeting safety standards for industrial wear
✅ Water Repellent – Ideal for outdoor and sports applications
✅ Moisture-Wicking & Anti-Static – For high-performance sportswear
These finishes elevate polyester into a high-performance material, making it ideal for both functional and fashion applications.
Commitment to Sustainability
Sustainability is not just a business strategy but a core value at SVG Fashions. The company has implemented several eco-friendly initiatives:
🔹 Recycled Polyester – Producing fabrics from PET bottles and ocean waste, reducing environmental impact.
🔹 Solar Power – Solar panels installed across factories to minimize carbon footprint.
🔹 Effluent Treatment Plants (ETP) – State-of-the-art water recycling and zero liquid discharge (ZLD) systems.
🔹 Air Pollution Control – Electrostatic Precipitators (ESP) to reduce emissions.
🔹 Plastic-Free Packaging – Transition to biodegradable and reusable materials.
SVG Fashions is actively working towards a circular economy, ensuring that its manufacturing processes contribute to environmental preservation while maintaining efficiency.
A Vision for the Future
Looking ahead, SVG Fashions aims to expand its market presence, invest in cutting-edge textile technologies, and strengthen global partnerships. The company envisions a future where polyester-based fabrics dominate multiple apparel categories, offering sustainability, durability, and innovation.
Mr. Rajkumar Agarwal’s vision is clear: “Every major brand in India should source fabrics from SVG in some capacity. We are committed to providing high-performance, sustainable, and versatile textiles that cater to the evolving needs of the global fashion industry.”
With an unwavering commitment to quality, innovation, and sustainability, SVG Fashions is poised to reshape the future of polyester textiles, making it the preferred choice for brands and consumers worldwide.
SVG Fashions’ journey from a fabric trading business to an integrated textile powerhouse is a testament to strategic vision, resilience, and innovation. By continuously investing in state-of-the-art manufacturing, product development, and sustainability, the company is setting new benchmarks in the textile industry.
As it continues to evolve, SVG Fashions remains committed to delivering world-class fabrics that define the future of fashion.