Filatex Charts ₹650 Crore Pathway to Expansion and Sustainability

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Filatex India Limited, a leading player in the polyester filament yarn industry, is embarking on a transformative growth journey anchored in expansion, recycling, and automation. With a planned capex of approximately ₹650 crore, the company is strategically balancing capacity augmentation with sustainability-driven initiatives, positioning itself as a frontrunner in India’s evolving textile ecosystem.

Madhu Sudan Bhageria, Chairman and Managing Director, Filatex india Ltd

To strengthen its core manufacturing base, Filatex is investing ₹235 crore to set up additional facilities for Partially Oriented Yarn (19,800 MTPA), Fully Drawn Yarn (28,800 MTPA), and Draw Textured Yarn (14,400 MTPA) at its Dahej unit. Scheduled for commissioning in September 2026, this expansion will cater to growing domestic and export demand while consolidating Filatex’s leadership in polyester yarn production.

In another innovative step, the company is implementing a Steam Power Distribution Project to sell surplus steam (around 70 TPH) from its captive power plant to nearby small-scale industries. With an outlay of ₹85 crore, financed through internal accruals, the project is expected to be commissioned by June 2026 and generate ₹60 crore of additional annual EBITDA, exemplifying resource optimization and value creation.

Advancing Circularity Through Recycling

Filatex is making bold strides in recycling as part of its vision to transition the textile industry from a linear to a circular economy. Through its wholly owned subsidiary, Texfil Private Limited, the company is executing a ₹300 crore Polyester Textile Recycling Project with an annual capacity of 26,250 MT. Located near its Dahej facility, this plant will employ Filatex’s patented molecular regeneration process, enabling chemical recycling of post-consumer and pre-consumer textile waste into virgin-quality polyester chips.

The project, slated for commissioning in September 2026, is expected to deliver ₹75–80 crore in annual EBITDA while conserving virgin resources, cutting emissions, and diverting polyester waste from landfills. Alongside, a pilot R&D plant is already operational, processing pre-consumer textile waste such as garments and home linens, validating Filatex’s technology leadership in recycling.

Automation for Operational Efficiency

Recognizing the labour-intensive nature of yarn packaging, Filatex is investing ₹40 crore in automation of post-winding tasks such as doffing, trolley movement, and packaging. Partnering with Salmoiraghi Spa of Italy, the company aims to halve its manpower requirement in packaging from 360 to about 180 workers daily. This automation, expected to be completed by June 2026, will deliver ₹5–6 crore in annual savings while improving reliability and efficiency.

A Balanced Growth Strategy

Together, these initiatives reflect a comprehensive capex plan of ₹650 crore. With projected EBITDA and cost savings of ₹235–240 crore annually, Filatex’s strategy combines growth, efficiency, and sustainability. By scaling capacity, pioneering chemical recycling, and automating labour-intensive processes, the company is building resilience while reinforcing its commitment to innovation and circularity.

Filatex’s roadmap illustrates how growth and sustainability can go hand in hand. With its investments in Dahej expansion, steam distribution, recycling, and automation, the company is not only enhancing shareholder value but also setting benchmarks for the Indian textile industry. As it prepares to commission these projects by 2026, Filatex is poised to play a pivotal role in driving India’s shift towards sustainable and globally competitive textile manufacturing.

Filatex at a Glance – Expansion & Sustainability Roadmap

  • Total Capex: ₹650 crore
  • Projected Annual EBITDA/Savings: ₹235–240 crore

Capacity Expansion (Dahej)

  • POY: 19,800 MTPA
  • FDY: 28,800 MTPA
  • DTY: 14,400 MTPA
  • Investment: ₹235 crore
  • Commissioning: Sept 2026

Steam Power Distribution Project

  • Surplus Steam: 70 TPH
  • Investment: ₹85 crore
  • Annual EBITDA: ₹60 crore
  • Commissioning: June 2026

Polyester Recycling (Texfil Pvt Ltd)

  • Capacity: 26,250 MT per annum
  • Investment: ₹300 crore
  • Annual EBITDA: ₹75–80 crore
  • Commissioning: Sept 2026
  • Technology: Patented Molecular Regeneration Process

Automation of Yarn Packing

  • Capex: ₹40 crore
  • Savings: ₹5–6 crore annually
  • Manpower Reduction: 360 ➝ 180/day
  • Partner: Salmoiraghi Spa, Italy
  • Completion: June 2026