Shri Techtex to raise INR 45 crore for capacity expansion

Shri Techtex Limited, a rapidly growing manufacturer and exporter of technical textiles, is in the process of raising capital to support its future expansion plans. The funds raised from the issue will be allocated towards various key initiatives, including the construction of a factory shed (INR 3.71 crore), commissioning of a solar plant (INR 4.89 crore), purchase of machinery (INR 6.31 crore), meeting working capital requirements (INR 15.31 crore), and fulfilling general corporate purposes, including issue expenses. As the company’s business is highly energy-intensive and demands substantial working capital, this capital infusion is expected to facilitate the expansion of margins through value-added products, reduced energy costs, and the repayment of high-cost debt, leading to a relief in interest burden.

Mr. Hanskumar Agarwal, Executive Director of Shri Techtex Limited, expressed his optimism about the public issue, stating: “We have been on an excellent growth trajectory and have established a strong foundation in terms of products, capacities, clientele, and geographical reach during the first decade of our operations. Transitioning to a public company opens up new horizons of ambitions for the company.”

The company specializes in manufacturing PP non-woven fabric in various sizes and densities, ranging up to 4.5 meters in size and 15 GSM to 800 GSM. Non-woven fabric is particularly beneficial in specific applications, especially in fields and industries that require disposable or single-use products, such as organic farming, healthcare, hospitals, nursing homes, home furnishing, vehicle upholstery seat fabrication, mattress & furniture covering, ecological packaging, and industrial and consumer goods. Shri Techtex’s manufacturing facility is strategically located in Simaj of Dholka Taluka in the Ahmedabad District of Gujarat, providing close proximity to major transport hubs. Spanning across an area of 41,548 sq. meters, the manufacturing facility boasts an installed capacity of 3600 MT of PP non-woven fabric per annum. The company’s future expansion plans involve the addition of new products in the technical textile segment. The incorporation of new machinery will further augment the installed capacity, allowing the manufacturing of an additional 1200 tonnes per year and an extra 24 lac sq. meters with this expansion.