Dudani Retail IPO

The Indian textiles and apparel sector contributes around 2% of India’s GDP and 11% of manufacturing GVA and is expected to increase its GDP contribution to around 5% by 2030.  

The domestic textiles and apparel market is projected to grow from US$225 billion in 2025 to US$350 billion by 2030, supported by annual growth of around 10–12%.  

The sector employs more than 45 million people and produces around 22,000 million garment pieces annually.  

India is the world’s largest cotton producer, with estimated production of 302.25 lakh bales in the 2024–25 season.  

The global apparel market was valued at around US$1.8 trillion in 2024 and is expected to grow at a CAGR of more than 3.3% between 2025 and 2034.  

India is among the top five global textile exporters, with the country targeting textile and apparel exports of US$100 billion.  

Textile and apparel exports stood at US$9.40 billion in Q1 FY26, with ready-made garments accounting for 45%, cotton textiles 30% and man-made textiles 12%.  

Technical textiles are an emerging growth segment, with India ranking as the 5th-largest technical textiles market globally. The segment was valued at US$29 billion in 2024.  

The government aims to achieve US$250 billion in textile production and US$100 billion in exports by 2030.  

Key government initiatives include PM MITRA Parks and the Samarth Scheme, which support textile infrastructure, investment and skill development.  

The India-UK FTA provides duty-free access to 99% of goods and could support textile exports to the UK.  

Major textile industry hubs in India include NCR, Gujarat, Maharashtra, Uttar Pradesh, West Bengal, Tamil Nadu, Madhya Pradesh and Rajasthan. 

Capital Expenditure: ₹0.79 crore towards purchasing machinery for expansion and upgradation of the existing manufacturing facility.  

Repayment of Borrowings: ₹3.00 crore towards repayment or pre-payment of certain outstanding borrowings.  

Working Capital: ₹3.97 crore to meet the company’s working capital requirements.  

General Corporate Purposes: ₹1.50 crore for strategic initiatives, partnerships, joint ventures, acquisitions, brand building, marketing and other general corporate requirements. 

Diversified Operating Verticals: Operates across women’s wear, men’s wear, licensed manufacturing and quick-commerce supply arrangements.  

Established Licensed Manufacturing Relationships: Has manufacturing agreements with leading e-commerce marketplaces for labels such as Kalini, Corsica, Roadster, Anouk, Chandbali and Baesd.  

In-House Women’s Apparel Manufacturing: Handles cutting, stitching, finishing and quality control at its Jaipur facility, while dyeing, printing and embroidery are outsourced to job workers.  

Asset-Light Men’s Wear Model: Millennial Men follows a trading model, with finished garments sourced from external suppliers, reducing manufacturing-related capital requirements.  

Multi-Channel Distribution Network: Sells through Myntra, Amazon, Flipkart, Ajio, Nykaa Fashion and its direct-to-consumer website.  

Quick-Commerce Supply Model: Supplies inventory to designated quick-commerce hubs on a sell-or-return basis, with settlements linked to sales.  

Established Textile Sourcing Network: Maintains relationships with fabric and trim suppliers across Jaipur and other major textile hubs.  

In-House Value Addition: Plans to use ₹79.20 lakh of IPO proceeds to purchase embroidery machinery and reduce reliance on external job workers.  

Deleveraging: Plans to allocate ₹300 lakh towards repayment or prepayment of outstanding borrowings.  

Working Capital Support: ₹396.70 lakh from the IPO proceeds will be used to meet working capital requirements and support inventory and procurement needs.  

Product Assortment Expansion: Scope to expand women’s ethnic and fusion wear through greater design and sampling capabilities.  

Marketplace & Quick-Commerce Expansion: Opportunity to increase business across existing and new e-commerce and quick-commerce platforms.  

Digital Workflow Integration: Plans to upgrade digital and workflow management systems across design, sourcing, inventory and fulfilment.  

Selective Offline Expansion: Exploring opportunities to enter offline retail through partnerships or selective store formats. 

High Customer Concentration: Top 1 customer contributed 35.74% of domestic sales revenue in 6M FY26 and 47.49% in FY25. Top 10 customers accounted for 76.13% and 74.44%, respectively.  

Supplier Concentration: Top 1 supplier accounted for 43.88% of total expenses in 6M FY26, while the top 5 suppliers contributed 79.54%. The company also does not have long-term supply agreements.  

Quick-Commerce & E-Commerce Dependence: The company operates on a sell-or-return model for quick-commerce and depends heavily on e-commerce platforms for customer reach, with no physical retail stores.  

Dependence on Rented Premises: The registered office and central manufacturing facility operate from rented premises in Jaipur, creating lease renewal and relocation risks.  

Geographical Concentration: Operations are concentrated in Rajasthan, exposing the company to potential regional infrastructure and regulatory disruptions.  

Promoter Dependence: Day-to-day management, strategic decisions and product design rely significantly on Managing Director Akshay Dudani and Whole-time Director Charu Dudani.  

Intense Competition: The company operates in a highly competitive and fragmented apparel market, facing competition from national brands, D2C players, marketplace labels and regional manufacturers.  

Changing Fashion Trends: Rapid changes in consumer preferences could lead to incorrect demand forecasts, excess inventory, markdowns and margin pressure.  

Raw Material Price Volatility: Fluctuations in fabric and trim prices can affect manufacturing costs and margins.  

Third-Party Job Work Dependence: Outsourcing dyeing, printing and embroidery creates potential risks related to processing delays and quality inconsistencies.  

Unappraised IPO Objects: The estimated requirements for machinery, working capital and debt repayment have not been appraised by any bank or financial institution.  

Past Compliance Delays: The company has experienced delays in certain RoC filings and has received minor tax demand notices, which could result in regulatory scrutiny.  

Promoter Shareholding Dilution: Promoter shareholding is expected to decline from 100.00% to 64.99% after the issue.  

SME Listing Liquidity Risk: Listing on the BSE SME platform may involve lower trading liquidity, higher price volatility and stock circuit-limit restrictions. 

Dudani Retail IPO DRHP 

Finshore Management Services Limited 

Contact Number: 011-45121795 

Email Address: investor.ipo@maashitla.com