AB Cotspin to increase production with Rs 1,500 cr investment

A prominent integrated textile manufacturer, AB Cotspin India plans to invest upto Rs 1,500 crore to expand its manufacturing capabilities. This expansion project will include adding of around 200,000 spindles to the company's current capacity of 50,832 spindles, effectively quadrupling its production scale. This new capacity will be established across various locations in India, with key sites in Madhya Pradesh and Maharashtra, and is projected to be fully operational within the next three years.

This initiative is comprehensive, encompassing the acquisition of land on lease; the establishment of state-of-the-art manufacturing plants for spinning, ginning, yarn manufacturing, and processing; the development of modern warehousing and logistics infrastructure; and the construction of facilities for the sustainable utilization of by-products.

The investment will be financed through a combination of bank financing, internal accruals, and government incentives, ensuring a robust and balanced capital structure. Deepak Garg, Managing Director, AB Cotspin India says, the Rs 1,500 crore investment marks an important moment for them, directly responding to strong market demand and aligning perfectly with our long-term growth strategy. Doubling the company’s spindle capacity is not just about scale; it’s about enhancing its integrated, sustainable manufacturing ecosystem. This expansion will significantly strengthen the firm’s domestic and international market position, drive sales growth, and improve profitability.

In FY25, AB Cotspin reported a 17.10 per cent Y-o-Y increase in revenue, reaching Rs 300.91 crore. The company’s EBITDA grew by 18.90 per cent, with margins improving by 17 basis points to 10.92 per cent, underscoring the company’s strong focus on operational efficiency. Net profit also saw robust growth, rising by 52.27 per cent to Rs 10.21 crore.