Arvind Advanced Materials Limited (AAML), a wholly owned subsidiary of Arvind Limited, announced the acquisition of nearly 61% stake in Dalco-GFT, a U.S.-based manufacturer of specialized needle-punched non-woven specialty fabrics. This acquisition reinforces Arvind’s strategy of leveraging its integrated supply chain and pursuing value-accretive opportunities to enhance resilience, expand partnerships, and respond to evolving global trade dynamics.
Commenting on the acquisition, Mr. Punit Lalbhai, Vice Chairman of Arvind Limited, said: “The acquisition of Dalco-GFT marks a transformational milestone in AAML’s growth journey. Through this transaction, we are entering the world’s largest technical textile market—the United States—through a platform that is both technologically aligned and operationally strong. The continued participation of the existing shareholders, who will retain a ~39% stake, reflects strong alignment and confidence in the future of the business. This acquisition is highly synergistic and will accelerate our growth ambitions of 18–20% through cross sourcing and technology integration.”
“Our customers can expect the same great service, relationships, and product quality they’ve always known — and we’re excited about what this transaction makes possible for them going forward.” said Mr. Joey Duncan, Chief Executive Officer of Dalco-GFT. “Our team remains fully committed to serving our customers with the same responsiveness and reliability they have come to expect. With AAML as the parent, we will be even better positioned to strengthen our operations, enhance our capabilities, and accelerate growth and innovation for the benefit of our customers.
I am also excited to continue leading Dalco-GFT under AAML’s ownership and look forward to working together with Mr. Punit Lalbhai and team to build on the company’s strong foundation and pursue its next phase of growth.”
AAML operates a scaled advanced materials platform with supply leadership positions across many critical sectors such as, protective gear, renewable energy, mass mobility, industrial filters and belting and is backed by Arvind Group’s century-long heritage in manufacturing of textiles, capital goods and Industrial materials.
AAML is almost two decades old and an innovation driven product portfolio with deep vertical integration spanning materials, processing, and finished products having cost leadership, and margin resilience. It currently operates three distinct verticals i.e., Human Protection, Composites, and Industrial Application and has achieved a Revenue CAGR of 23% over the past five years with a consistent margin of 15%. AAML clocked turnover of Rs. 1544 crores in FY25.
Dalco-GFT
Dalco-GFT was established in 1988 and has a proven track record of four decades. It delivered specialized needlepunched non-woven tech-textile solutions across sectors including Automotive, Industrial, Construction and Furniture & Furnishing.
- Dalco-GFT has two manufacturing units based in North and South Carolina, USA with a combined annual capacity of producing 75 Mn Lbs.
- Dalco-GFT has reported a top line CAGR of 10% in the past six years and margin improvement of 100 bps.
- In CY25, Dalco-GFT reported a top-line of $100 Mn and EBITDA margin of 17%, with 40% ROCE and 95% cash conversion ratio.
Dalco-GFT has established a strong position in the technical textiles and nonwovens sector through a diversified product portfolio catering to multiple high-growth end-use markets. The company’s solutions are widely used across mobility, geotextiles, industrial applications, and flooring & furniture segments, supported by a robust portfolio of over 300 SKUs. With expertise in rolled and die-cut nonwoven fabrics for automotive interiors, road construction, drainage systems, carpet backing, and industrial applications, Dalco-GFT brings strong application-driven capabilities and market diversification to Arvind Advanced Materials’ global technical textiles strategy.
Access to the US market
The acquisition is expected to accelerate Arvind Advanced Material’s global footprint and reduce supply chain risk while unlocking the following strategic synergies:
- Access to a massive TAM [USA] $2.5Bn across all four segments
- Needle-punch non-wovens are adjacent to AAML’s industrial products & filtration capabilities, reducing technology risk versus unrelated diversification
- Expands customer base by 75+ active customers and 88% sole-source position
- Addition of three sectors (Automotive, Furniture & Furnishing and Construction) to existing profile
- AAML’s established business will get more customers through cross sourcing
This acquisition signifies Arvind’s continued commitment to its core principles of disciplined growth, strategic partnerships, and responsible decision-making. Anchored in its long-standing value system, the Company remains focused on delivering sustainable, long-term value to all stakeholders.
