Ashutosh Fibre IPO

The Indian technical textile market grew from USD 18.89 billion in FY20 to USD 28.50 billion in FY25, registering a CAGR of 8.57%. It is projected to reach USD 50 billion by FY30, growing at an estimated CAGR of 11.9%.  

Technical textiles cover 12 major segments, including Agrotech, Indutech, Mobiltech, Geotech, Buildtech, Protech, and Sportech. These products are used mainly for their functional and performance characteristics rather than appearance. 

Demand is supported by applications such as industrial air and liquid filtration, automotive airbags and insulation, soil stabilisation, waterproofing and protective equipment. Stricter pollution-control norms and infrastructure development are also supporting demand.  

The National Technical Textiles Mission (NTTM) supports research, innovation, and market development in the sector. The government has also introduced a ₹10,683 crore Production Linked Incentive (PLI) Scheme to promote man-made fibres and technical textiles.  

Mandatory Quality Control Orders (QCOs) and BIS certification requirements for several technical textile products are aimed at improving product quality and encouraging compliance among domestic and imported products.  

Technical textile exports increased from ₹275.9 crore in FY21 to ₹706.7 crore in FY25, registering a CAGR of around 26%. The US, UAE and Brazil were among the key export markets, accounting for 23.6%, 8.2% and 5.1% of exports, respectively.  

Technical textile imports reached ₹927.1 crore in FY25, with China accounting for 37.7% of imports. The industry continues to depend on imports for certain high-performance materials, including carbon fibre and para-/meta-aramids.  

The sector requires specialised technology, significant capital investment, and product testing capabilities. Long customer approval and validation cycles can also make it difficult for new players to enter certain segments.  

The sector faces shortages of skilled workers, limited industry-academia collaboration, and inadequate regional testing infrastructure. These factors can affect product development and capacity expansion.  

The Indian technical textile market includes established players such as RSWM Limited, Reliance Chemotex, Garware Technical Fibres and Cedaar Textile Limited, operating across different technical textile segments. 

Indutech: Manufactures polypropylene spun yarn used in industrial filtration products, filter cloths, ropes and webbings.  

Protech: Produces para-aramid, meta-aramid, modacrylic-blended and flame-retardant viscose yarns for PPE, firefighting equipment and defence applications.  

Hometech: Supplies yarns used in upholstery, carpets, sofa linings, mattress covers and home filtration products.  

Mobiltech: Produces specialised yarns used in automotive applications such as brake pads, clutch facings and transmission components.  

Ashutosh Fibre manufactures a wide range of technical yarns, including para-aramid, meta-aramid, modacrylic, FR viscose, stainless steel, wool, polypropylene, PLA and high-tenacity polyester. These products serve Indutech, Protech, Mobiltech and Hometech applications.  

The company has more than 40 years of experience in textiles, including over 15 years in technical textiles. It is also one of India's leading manufacturers of polypropylene spun yarns.  

Its Petlad facility uses Ring Frame, DREF II Friction, and Open-End Spinning technologies to manufacture yarns across different specifications and applications. 

The company has a proprietary Fabric-to-Fibre recycling process that converts para-aramid fabric waste into reusable raw materials. Recycled aramid waste accounted for 21.46% of total raw material purchases in FY26.  

Ashutosh Fibre has Global Recycle Standard (GRS) certification and operates a 380 KW rooftop solar power system. It has also leased land for a proposed 4 MW ground-mounted solar plant.  

The company holds ISO 9001:2015 and OEKO-TEX certifications and uses testing equipment to monitor yarn quality. Its defect and rejection rate stood at 0.13% of operating revenue in FY26.  

India's technical textile market is projected to reach USD 50 billion by FY30, supported by government initiatives such as the National Technical Textiles Mission and the Production Linked Incentive (PLI) Scheme.  

The company plans to use ₹25.51 crore of the IPO proceeds for new equipment and machinery. This is expected to increase installed capacity from 4,775 MTPA to 6,025 MTPA, adding 1,250 MTPA of capacity.  

Ashutosh Fibre is moving beyond modacrylic yarns into modacrylic-based fabrics. Trial production has started through third-party job work, with the company targeting production of up to 20,000 metres of finished fabric per month.  

Exports accounted for 38.99% of operating revenue in FY26. The company can use its additional capacity to expand into international markets for specialised filtration and protective textile products. 

The company does not have long-term supply contracts and mainly procures raw materials through purchase orders.  

Its top 10 suppliers accounted for 64.73% of total raw material purchases in FY26, increasing dependence on key suppliers.  

Imported raw materials contributed 36.29% of total purchases in FY26. Changes in foreign exchange rates, shipping costs, tariffs or global supply conditions could affect costs.  

Prices of polypropylene and polyester, which are linked to crude oil, may fluctuate with global crude oil movements.  

The top 10 customers contributed 68.85% of operating revenue in FY26, making the company dependent on a relatively small customer base.  

Customers generally place orders based on their immediate requirements rather than long-term purchase commitments. A reduction or delay in orders from major customers could affect revenue.  

Para-aramid spun yarn and 100% polypropylene spun yarn contributed 27.66% and 22.95% of revenue, respectively, in FY26.  

Capacity utilisation for the 100% polypropylene yarn line of up to 2 NE was 63.95% in FY26, partly due to competition from new entrants. 

All manufacturing operations are located at a single leased facility in Petlad, Gujarat. Any prolonged breakdown, power outage, labour issue or natural disaster could disrupt production.  

The land and building are held under a 10-year lease beginning in 2023, creating dependence on the continuation of the lease arrangement.  

The company had ₹18.43 crore of unsecured loans outstanding as of March 31, 2026. These loans are repayable on demand and could create working capital pressure if recalled.  

Promoters and directors have provided personal guarantees and security for certain borrowings. A default could expose their assets and shareholding to enforcement action.  

The company uses duty-free imports under the Advance Authorisation and EPCG schemes and had export obligations of ₹4.99 crore as of FY26. Failure to meet these obligations could result in additional duties, interest and penalties.  

The company has reported historical delays in GST and TDS filings and payments relating to Professional Tax and ESIC.  

There have been delays in certain ROC filings, while some historical corporate records are reportedly untraceable.  

As of the RHP date, the company had 9 outstanding tax proceedings involving ₹0.77 lakh, while its promoters faced 3 proceedings involving ₹2.72 lakh. 

Ashutosh Fibre IPO DRHP 

Ashutosh Fibre IPO RHP 

Mefcom Capital Markets Limited 

Contact Number: 040-79615565 

Email Address: ashutosh.ipo@kfintech.com