Company Overview

Sumeet Industries Limited, incorporated in 1988, is an integrated polyester manufacturer with a production facility in Surat, Gujarat. The company has an installed production capacity of over 1 lakh tonnes per annum and produces Polyethylene Terephthalate (PET) chips, Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY), and polyester texturized yarn. In July 2024, the company was acquired by the Eagle Group, a textile-focused promoter group with over four decades of industry experience.

Product Portfolio and Manufacturing

  • PET Chips: High-quality polyester chips for POY, FDY and texturized yarns
  • Partially Oriented Yarn (POY): 52,500 TPA capacity, available in semi-dull, bright and dope-dyed variants
  • Fully Drawn Yarn (FDY): 45,500 TPA capacity, with excellent performance in warping and knitting
  • Polyester Texturised Yarn (PTY): 5,400 TPA capacity, available in various deniers
  • Recycled Chips: 2,700 TPA capacity

Total production capacity: 1,00,000 TPA

Environmental Initiatives

  • State-of-the-art ETP facility with 100 m³ capacity ensuring strict environmental compliance
  • Zero Liquid Discharge (ZLD) operations with no wastewater released outside
  • 100% treated water reused within operations
  • 98–100% spinning efficiency with low wastage levels of 0.5%–1.5%
  • In-house recycling plant for processing manufacturing waste

Rights Issue Details

  • Total Issue Size: ₹199.75 Crore
  • Net Proceeds: ₹194.90 Crore
  • Rights Issue Price: ₹11.86 per Share

Utilization of Net Proceeds:

  • Working Capital Support: ₹100.00 Crore
  • General Corporate Purpose / Nakoda Asset Integration: ₹49.90 Crore
  • Debt Repayment: ₹23.00 Crore
  • 6.5 MW Captive Solar Power Plant: ₹22.00 Crore

Strategic Acquisition

  • Acquired CP Plant in liquidation from Nakoda Limited located in Surat, Gujarat
  • Product: Bottle Grade PET Chips
  • Plant Capacity: 140,000 TPA
  • Total Capital Outlay: ₹90.00 Crore (₹49.00 Cr from Rights Issue, ₹41.00 Cr from Internal Accruals)
  • Expected Additional Annual Turnover: ₹1,500 Crore
  • Expected Additional EBITDA: ₹70.00 Crore
  • EBITDA Margin: ~4.7%
  • Plant to be modified and re-started in Q1 of FY27-28

Renewable Energy Initiatives

  • 14 MW captive solar power plant already commissioned through tie-up with High Urja LLP
  • Energy cost savings of ~₹3.5 per unit
  • ~30% of total energy consumption met through renewable sources
  • ~5 MW additional renewable capacity planned across solar and wind
  • Board approved ~4.20 MW captive wind power under definitive agreement
  • Power supply from wind project expected by March 2026

Expansion Plans

  • 30,000 TPA capacity expansion planned over next 3 years (10,000 TPA in FY26, 20,000 TPA in FY27)
  • Shift towards value-added yarns up to 50% of total capacity
  • Launch of Dope Dyed FDY Yarn: 6,500 TPA
  • Launch of Bright Yarn: 5,500 TPA
  • Increase yarn conversion capacity to 40–50% of current levels
  • Scale up of catonic yarn production from 2,000 TPA to 20,000 TPA
  • Expected incremental revenue of ~₹300 Crore per annum

Financial Performance

Q1 FY27 Management Commentary (Mr. Pratik R. Jaju, Managing Director):

  • Total Income grew by over 9% year-on-year
  • Industry witnessed unprecedented surge in raw material prices due to geopolitical tensions in Middle East
  • Sharp increase in crude-linked feedstock prices including PTA and MEG
  • Elevated logistics costs temporarily impacted margins
  • Situation normalizing with crude oil prices stabilizing and supply chains improving

Full Year FY27 Guidance:

  • Expected to deliver more than 30% revenue growth during FY27
  • EBITDA margin of around 6%
  • Profit After Tax margin in range of 3.5% to 4%

Financial Statements (Amounts in ₹ Crore):

Profit & Loss Statement:

| Item | FY24 | FY25 | FY26 |

| Raw Material Expenses | 837.78 | 797.91 | 804.78 |

| Employee Costs | 28.37 | 30.09 | 33.30 |

| Other Expenses | 159.10 | 163.06 | 154.96 |

| Total Expenditure | 1025.25 | 991.05 | 993.04 |

| EBITDA | -39.54 | 14.68 | 60.77 |

| Finance Costs | 0.02 | 3.59 | 10.05 |

| Depreciation | 19.12 | -63.47 | -9.69 |

| PBT | 0.00 | 189.28 | 31.60 |

| Tax | 0.41 | -4.46 | 9.33 |

| PAT | -59.01 | 170.26 | 23.61 |

Balance Sheet:

| Equities & Liabilities | FY24 | FY25 | FY26 |

| Equity | 103.64 | 133.27 | 133.27 |

| Reserves And Surplus | -280.33 | 51.94 | 78.62 |

| Total Equity | -176.69 | 185.21 | 211.89 |

| Long Term Borrowings | 41.24 | 46.86 | 85.62 |

| Short Term Borrowings | 448.85 | 24.31 | 73.65 |

| Total Assets | 427.70 | 428.48 | 550.81 |

Cash Flow Statement:

| Item | FY24 | FY25 | FY26 |

| Cash Flow from Operating Activities | 14.79 | 195.58 | -35.37 |

| Cash Flow from Investing Activities | 0.73 | -0.86 | -48.82 |

Industry Context

  • Textile and apparel sector contributes ~11% to India's manufacturing output
  • Man-made fibres account for ~65% of India's total fibre consumption
  • Polyester is dominant fibre within MMF segment
  • India's textile and apparel industry size estimated at ~USD 225 bn in 2025
  • Gujarat contributes ~35–40% of India's man-made fibre and yarn production
  • Surat processes over 40 million metres of fabric per day