Company Overview

Fiberweb (India) Ltd. was established in 1985. It began as a plastics company and later ventured into garbage and carrier bags before moving into spun bond nonwoven fabrics, becoming the first of its kind in India. Since commissioning its plant in 1996, it has operated as a 100% Export Oriented Unit (EOU), exporting to countries including the UAE, South Africa, Australia, USA, UK, and Europe. The company also has an in-house facility for manufacturing stitched garments like medical and industrial gowns, coveralls, aprons, car covers, and other made-ups as per client specifications. A new product line for melt blown nonwoven fabrics, used in personal hygiene products like diapers and face masks, has been set up. The company is exploring new opportunities and product segments for growth.

Key Facts

  • 36+ Years of experience.
  • 100% Export Oriented Unit.
  • ~5,000 MTPA installed capacity of Spun Bond fabric.
  • ~3,000 MTPA installed capacity of Melt Blown fabric.
  • 75% of products are exported to the USA, UK, Europe, Australia, New Zealand, South Africa, and the Gulf region.
  • Manufacturing certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018.
  • An 85,000 sq.ft. manufacturing plant located in Daman.
  • Credit Rating: BBB- Stable.
  • Q2 FY27 Financials:
  • Revenue: ₹30.74 Crore
  • EBITDA: ₹3.31 Crore
  • Net Profit: ₹1.27 Crore

The company has started re-investing in modernization and de-bottlenecking its operations.

Management Overview

The core management team consists of:

  • Mr. Pravin Sheth: CA by profession, with over 5 decades of industry experience. Responsible for driving the vision and strategy for the company.
  • Mr. Bhavesh Sheth: Responsible for business development, business process, and organization strategy. Has 30 years of total experience (10 years with Fiberweb) and previously worked with Fortune 500 companies in the USA in senior management.
  • Mr. G Ravindran: B.Tech (Chemical Engineering), M.Tech (Industrial Management) from IIT Kharagpur. Responsible for the manufacturing facility in Daman. Has 40 years of total experience, 30 years with the company.
  • Mr. Mukesh Pandya: Qualified FCA, DISA & CISA with more than 30 years of experience in accounts, auditing, and taxation. He is the Chief Financial Officer (4 years with the company).

Industry Overview

The presentation includes an overview of the global nonwovens market, citing data from various sources:

  • The market is expected to surge at a CAGR of 4.6% during the forecast period 2024 to 2034.
  • The nonwoven market is likely to reach US$70.7 billion by 2034, projected to grow at a CAGR of 6.1%.
  • The global nonwoven fabrics market size was projected to grow from USD 40.5 billion in 2020 to USD 53.5 billion by 2025, at a CAGR of 5.7%.
  • The nonwoven fabric market in India is poised to expand at a CAGR of 6.4% through 2034 and is projected to grow to USD 460.73 million by 2030.
  • Key growth drivers include increasing use in hygiene, medical, construction, and filtration applications; growth of the modern healthcare sector in emerging markets; a rise in birth rate; and an increase in the geriatric population in western countries.

Financial Highlights

Last Five Quarter Performance (₹ Crore)

| Particulars | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |

| Sales | 20.26 | 25.66 | 9.72 | 9.86 | 30.74 |

| Other Income | 0.38 | 0.24 | 0.61 | 0.15 | 0.25 |

| Total Income | 20.64 | 25.90 | 10.33 | 10.02 | 30.99 |

| Expenses | 16.92 | 20.36 | 7.53 | 8.14 | 27.67 |

| EBITDA | 3.72 | 5.54 | 2.80 | 1.87 | 3.31 |

| EBITDA Margin % | 18.01% | 21.38% | 27.11% | 18.72% | 10.70% |

| Interest | 0.30 | 0.18 | 0.34 | 0.30 | 0.40 |

| Depreciation | 1.20 | 1.20 | 0.69 | 1.21 | 1.21 |

| Profit before tax | 2.22 | 4.15 | 1.77 | 0.36 | 1.70 |

| Tax | -0.33 | 0.23 | 3.29 | 0.09 | 0.43 |

| Net Profit | 2.55 | 3.93 | (1.52) | 0.27 | 1.27 |

| Net Profit Margin | 12.36% | 15.16% | (14.73)%| 2.73% | 4.11% |

| Diluted EPS (₹) | 0.89 | 1.36 | (0.53) | 0.09 | 0.44 |

Annual Profit & Loss Account (₹ Crore)

| Particulars | FY24 | FY25 | FY26 |

| Sales | 86.00 | 101.29 | 84.56 |

| Other Income | 0.90 | 1.70 | 1.57 |

| Total Income | 86.89 | 102.99 | 86.13 |

| Expenses | 74.52 | 80.53 | 67.31 |

| EBITDA | 12.37 | 22.46 | 18.82 |

| EBITDA Margin % | 14.23%| 21.81% | 21.85% |

| Interest | 1.02 | 0.71 | 1.05 |

| Depreciation | 3.99 | 4.81 | 4.30 |

| Profit before tax | 7.36 | 16.94 | 13.47 |

| Tax | 0.09 | 1.93 | 3.45 |

| Net Profit | 7.27 | 15.00 | 10.01 |

| Net Profit Margin | 8.37% | 14.57% | 11.63% |

Balance Sheet Statement (₹ Crore)

| Equities & Liabilities | FY24 | FY25 | FY26 | | Assets | FY24 | FY25 | FY26 |

|----------------------------|--------|--------|--------|-|---------------------------|--------|--------|--------|

| Equity Share Capital | 28.79 | 28.79 | 28.79 | | Non-Current Assets | | | |

| Reserves and Surplus | 132.55 | 147.56 | 157.57 | | Fixed Assets | 116.98 | 127.94 | 145.27 |

| Net Worth | 161.34 | 176.35 | 186.36 | | Capital Work in Progress | 0.00 | 0.83 | 0.00 |

| Non-Current Liabilities| 0.00 | 0.00 | 0.00 | | Deferred Tax Asset | 1.51 | 1.68 | 1.14 |

| Current Liabilities | | | | | Other Non-Current Assets | 0.70 | 0.70 | 0.70 |

| Short-term Borrowings | 6.87 | 8.43 | 12.02 | | Total Non-Current Assets | 119.20 | 131.15 | 147.11 |

| Trade Payables | 2.61 | 4.28 | 4.36 | | Current Assets | | | |

| Other Financial Liabilities| 0.10 | 0.10 | 0.10 | | Inventories | 22.45 | 24.19 | 22.73 |

| Other Current Liabilities | 0.32 | 3.10 | 2.23 | | Trade Receivables | 12.52 | 16.67 | 6.65 |

| Total Current Liabilities| 9.90 | 15.90 | 18.71 | | Cash & Bank Balance | 3.69 | 1.64 | 2.21 |

| | | | | | Other Current Assets | 13.39 | 18.60 | 26.38 |

| Total Liabilities | 171.24 | 192.25 | 205.07 | | Total Current Assets | 52.05 | 61.10 | 57.96 |

| | | | | | Total Assets | 171.24 | 192.25 | 205.07 |

Investment Rationale

The presentation concludes by outlining the company's investment rationale:

  • Market Leadership & Niche Expertise: Positioned as a leader in the non-woven fabric industry with a strong market presence in diverse sectors including hygiene, medical, and agriculture.
  • Strategic Capacity Expansion: Ongoing investments in advanced manufacturing facilities and capacity enhancement to meet growing global demand.
  • Diverse Applications: Products cater to hygiene, medical, automotive, and construction industries, mitigating risks and ensuring steady revenue streams.
  • Experienced Leadership: Led by an experienced management team with strategic foresight and a focus on operational excellence.
  • Financial Performance: The company demonstrated improved EBITDA margins from 14.23% in FY24 to 21.85% in FY26, driven by operational efficiencies and cost optimization.

Disclaimer

The document includes a standard disclaimer stating that the presentation is for informational purposes only, does not constitute an offer to purchase securities, and is based on information the company considers reliable but for which it makes no warranty. It also contains forward-looking statements subject to risks and uncertainties.