Filatex India Limited Acquires Texfil Private Limited for Polyester Textiles Recycling Project

On May 1, 2024, Filatex India Limited informed the stock exchanges that the company had acquired existing shares of Texfil Private Limited.

The textile manufacturer, Filatex India Limited, has acquired all existing 2,000 Equity Shares of ₹10 each at a face value of ₹10 each from Mr Madhu Sudhan Bhageria and Mr Purrshottam Bhaggeria, Promoter Directors of the company. Texfil Private Limited has become its wholly owned subsidiary, effective May 1, 2024.

Texfil Private Limited also belongs to the textile industry. Regarding the objective of the acquisition, Filatex India Limited stated that the company will execute the Polyester Textiles Recycling Project in its wholly-owned subsidiary, Texfil Private Limited. Filatex India Ltd is involved in manufacturing synthetic filament yarns.

Texfil Private Limited was incorporated on June 25, 2021. Its Authorised Share Capital is ₹10 lakh, and its Paid-Up Share Capital is ₹20,000. Texfil Private Limited has not started any business activity to date.

During the financial results announcement on April 30, 2024, the company also announced that the company’s board discussed the pros and cons and approved that the Polyester Textiles Recycling Project will be executed in its wholly-owned subsidiary, Texfil Private Limited. The estimated project cost shall be around ₹300 crore for an annual capacity of 26,250 MT. This project will use polyester textile waste in all forms to produce polyester chips.

Meanwhile, in FY 2024, the company reported revenue of ₹4,286 crore, against ₹4,304 crore in FY 2023. However, the company reported a high net profit in FY 2024, which stood at ₹110.7 crore against ₹89.9 crore in the financial year 2023.

Commenting on the financial performance, the CMD, Mr Madhu Sudhan Bhageria, stated that despite several external challenges, domestic demand remains robust, growing at an impressive 8% CAGR. As import-related margin pressures ease, they are optimistic about the future of their polyester filament business, considering its status as the most widely utilised fibre globally.

On May 2, 2024, the share price of Filatex India Ltd opened at ₹63.45, touching the day’s low at ₹61.55, as of 11:19 AM on the NSE.

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