In a significant move that underscores confidence in India’s growing technical textiles and engineered fabrics sector, Motilal Oswal Financial Services Limited (MOFSL) has invested ₹100 crore in Kusumgar Limited. The transaction, executed through the acquisition of equity and preference shares, signals both financial backing and recognition of Kusumgar’s leadership in high-performance engineered fabrics.
On September 24, 2025, MOFSL announced the acquisition of 10,95,890 compulsorily convertible preference shares and 16,43,836 equity shares of Kusumgar Limited for a total consideration of approximately ₹100 crore. Structured as part of MOFSL’s treasury investment book, the deal is aimed at
generating sustainable, long-term returns. Importantly, the transaction is not a related-party deal and has been executed at arm’s length, reinforcing its strategic, financial nature.
Incorporated in 1990, Kusumgar Limited is a pioneer in engineered fabrics. The company manufactures woven, coated, and laminated synthetic fabrics with a strong focus on polyamides, polyester filaments, and polyurethane chemistry. These products are designed to meet high-performance requirements across diverse sectors. The company operates with vertical integration, spanning preparatory processes, weaving, dyeing, printing, finishing, coating, lamination, and fabrication. Kusumgar’s state-of-the-art infrastructure includes six manufacturing facilities in Gujarat and a fabrication unit in Uttar Pradesh.
Diverse Market Segments
Kusumgar caters to key global segments:
– Aerospace and Defence Fabrics
– Industrial and Automotive Fabrics
– Outdoor and Lifestyle Fabrics
This diversified portfolio not only positions Kusumgar as a key supplier for critical industries like defence and automotive but also allows it to tap into lifestyle and outdoor growth markets.
Financial Performance
The company has demonstrated remarkable growth over the past three years. Its turnover increased from ₹301.65 crore in FY 2023 to ₹467.91 crore in FY 2024, and further to ₹779 crore in FY 2025. This strong upward trajectory highlights Kusumgar’s ability to scale operations and deliver value across its chosen markets.
Industry Outlook
The global engineered fabrics industry is witnessing robust expansion. Valued at US$41.6 billion in 2019, it grew to US$62.5 billion in 2024 and is projected to reach US$103.4 billion by 2029. The industrial and automobile, outdoor and lifestyle, and defence and aerospace segments together account for nearly 90% of this industry.
In India, the engineered fabrics market was valued at ₹558.8 billion in FY 2020, growing to ₹900 billion in FY 2025, at a CAGR of 10%. It is projected to reach ₹1,695.2 billion by FY 2030, at an accelerated CAGR of 13.5%. Within this, industrial and automobile applications dominate with more than 55% share, followed by outdoor and lifestyle fabrics. This positions Kusumgar well to benefit from both domestic demand and global opportunities.
Strategic Significance of the Deal
For Motilal Oswal, the investment represents an entry into a high-growth sector aligned with India’s ambitions in technical textiles and defence indigenisation. For Kusumgar, the ₹100 crore infusion provides financial flexibility to scale up operations, strengthen R&D, and expand market reach.
Motilal Oswal’s investment in Kusumgar is more than a financial transaction—it is an endorsement of the potential of India’s engineered fabrics sector. As global demand for high-performance textiles accelerates across aerospace, automotive, defence, and lifestyle applications, Kusumgar is strategically placed to capture growth. With strong financials, modern infrastructure, and a track record of innovation, the company now has both the momentum and the backing to reinforce its leadership in the sector.
