Shreedhar Spinners Limited
Shreedhar Spinners
Profile of the company
Shreedhar Spinners is primarily engaged into manufacturing of compact spun cotton yarn of various counts ranging from Ne 10s to Ne 40s at its manufacturing facility located at manufacturing units located at additional Amravati industrial area textile park, Tuljapur, Amravati, Maharashtra, India for a period of 95 years spread across 1,20,000 sq. mt. and has a production capacity of 10,000 MT per annum of cotton yarn, with 28,608 spindles as on March 31, 2026. Its Manufacturing Facility operates 24 hours per day to maximize output and ensure uninterrupted operations and usually operates for around 360 days a year. Its manufacturing facility is equipped with spinning technology and processing techniques which enable to ensure production of quality yarn. Its raw material; raw cotton bales are utilized for production of cotton yarns. These yarns are suitable for both knitting and weaving applications and catering to a wide spectrum of end-use segments and products including but not limited to Apparel, Denim, Terry towels, Shirting, Bed linen, Sweaters, Socks, Furnishing Fabrics and Industrial fabrics.
It operates exclusively in the business-to-business (B2B) segment, supplying its products to buyers such as textile manufacturers, yarn exporters, traders and fabric processors (collectively ‘Customers’). Its exclusive B2B focus allows it to streamline its production and supply chain processes around the needs of its buyers, ensuring consistent quality, delivery, and efficient order fulfilment. It also allows it to build long-term client relationships and offer customized yarn solutions tailored to specific technical performance parameters and appearance required including count, twist, and strength. It sells its products to manufacturers, exporters and traders having a significant presence in Maharashtra.
It holds certifications including ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and demonstrating its assurance to quality management, environmental and health & safety. It has a dedicated in-house Testing and Quality Control Team comprises of 10 members as on April 30, 2026, which undertakes rigorous testing and quality management. It has dedicated manual, semi-automatic and automatic testing machines. Online automatic contamination sorters, Uster Quantum Clearers and testing machines from USTER (Switzerland) coupled with its dedicated Testing and QC team. Its Testing ensuring the quality of raw material dispensed in the production process and also the finished goods delivered to its customers. This helps in improving its procurement process thus reducing wastages, returns and other related costs. It sources major raw materials used for manufacturing of cotton yarn includes cotton bales from the different local ginners, traders and Cotton Corporation of India.
Proceed is being used for:
Industry overview
The overall size of India’s textile and apparel market was around $184 billion in FY2025. Indian domestic textile and apparel market was $147 billion, which has recovered at a 7% CAGR since the drop in 2020. The Ministry of Textiles has set a target for the domestic market to reach $250 billion by FY2031, for this to happen the market must grow at a CAGR of 9% from FY2025. India’s export performance across the textile value chain reflects a structurally strong and diversified competitive position, particularly in upstream segments. The country holds a dominant global standing in yarn, ranking 2nd overall with an 11% global share, supported by leadership in natural spun yarn, where India ranks 1st with a 21% share. Fibre exports also position India among the top global suppliers, ranking 5th, driven mainly by natural fibres. In fabrics, India maintains a 3rd global rank, underpinned by its large woven fabric export base. Although apparel exports place India 7th globally, the scale of the segment at $15.5 billion highlights substantial downstream potential.
India’s textile and apparel exports have grown with a CAGR of 2% since FY2020 to reach $37 billion in FY2025. The Ministry of Textiles has an ambitious target of reaching $100 billion exports by FY2031, requiring an accelerated growth of 18% CAGR. Apparel forms the largest share of exports, accounting for around 43% in FY2025. The total production capacity of India is increasing owing to the setting up of new manufacturing units across the value chain.
Investments in the Textiles Sector India’s textile manufacturing ecosystem has experienced a steady strengthening of installed capacity between 2018 and 2024, reflecting sustained investor confidence and a deliberate shift toward modern, high-productivity machinery. Additions across spinning, weaving and knitting technologies point to an industry preparing for scale, export competitiveness and greater integration with global supply chains. The growth in shuttle-less looms and knitting machines highlights the evolution of downstream value-added processes, but the most strategic takeaway is that capital formation is occurring across all major nodes of the textile value chain.
Pros and strengths
Long term and expanding customer relationship across textile industry: With combined five decades of experience between its Promoters, it has established strong relationships with key customer. As on March 31, 2026, it has a customer base in over 7 states and union territory. A key factor that sets it apart from competitors is its customer-centric approach, focusing on delivering products that align precisely with customer specifications. This commitment to customization and quality has not only supported the growth of its business but also strengthened its market presence and reputation within the industry. Its ability to maintain high quality standards, delivery of quality products and customer made to orders has resulted in long-standing relationships with its key customers. During Fiscal 2026, Fiscal 2025 and Fiscal 2024, it served over 42, 36 and 33 customers. Of these, around 8 customers have been associated with it for more than 3 years.
Fully integrated cotton spinning infrastructure with modern technologies to support product portfolio: It operates a fully integrated spinning facility that consolidates all essential stages of yarn production from raw cotton input to finished yarn within a single manufacturing unit. Its spinning operations cover key processes such as bale opening, cleaning, carding, drawing, roving, spinning, winding, and packaging. Housing all these processes under one roof reduces material handling, shortens production lead times, and enhances coordination between each stage. This results in better process control, improved operational efficiency, and consistent yarn quality. Its integrated spinning setup also provides flexibility in selecting cotton bales, enabling it to balance quality and cost by optimizing the procurement of raw cotton according to the precise specifications required for producing high-quality yarn.
Location advantage of its manufacturing facility: Its products are manufactured at its state of art manufacturing facility situated in the textile park at MIDC, Amravati, Maharashtra equipped with modern technology and is a textile hub and home to numerous textile mills. Its manufacturing facility location is well connected by rail, roads and air with the rest of the country, availability of skilled labour, raw material, technology, transportation etc. are easily available due to extensive industrialization in the area, etc are some of locational advantages which the company enjoys. Raw materials are majorly sourced locally and are easily available and / or deliverable from the manufacturers located in Maharashtra to its unit. Thus, procurement of raw materials is less time consuming and comparatively cheaper due to savings on time and freight, especially due to its proximity to Vidarbha.
Risks and concerns
Geographical concentration of revenue in Maharashtra: Its revenue from operations is concentrated in the region of Maharashtra contributing a substantial portion. For the Fiscal 2026, 2025 and 2024, Maharashtra contributes 90.20%, 87.24% and 86.34% of the total revenue from operations respectively. Any adverse developments affecting its operations in the state of Maharashtra such as changes in state-specific regulations, introduction of new levies, disruptions in logistics networks, political or social unrest, natural calamities, or weakening of economic conditions - could materially disrupt its business activities and supply chains in those regions, which adversely affect its business, results of operations, financial condition and cash flows.
Business dependence on operating facility in Amravati: Its facility at Amravati are subject to operating risks, such as shutdowns due to the breakdown or failure of equipment, power supply or processes, performance below expected levels of output or efficiency, adequate utilization rates, obsolescence of equipment, labour disputes, strikes, lockouts, industrial accidents, disruption by extremist groups, or any other reason, and the need to comply with the directives and regulations of the Government of India (GoI) and relevant state government authorities. It is heavily reliant on floor workers at its unit, including those workers who are hired on a daily wage / per piece basis and are not on a fixed payroll. Its inability to continue to procure such services or any disputes with this group of labour would severely affect its operations and may cause an under-utilisation of its capacities or a total shut down.
Dependence on limited number of suppliers for the raw material requirements: Cotton bales are the principal raw material used in its manufacturing operations and constitute the single largest component of its production costs. Its ability to remain cost competitive and operationally efficient is closely linked to the procurement of cotton bales in adequate quantities, of consistent quality, and at commercially viable terms. Its factory is located within major cotton growing area of Maharashtra and hence, it procures cotton bales from local vendors, Cotton Corporation of India and traders for its spinning unit, which helps reduce transportation costs, shorten lead times, and support timely production. Its raw material requirements are largely met through procurement from Maharashtra; As on March 31, 2026, March 31, 2025 and March 31, 2024, it contributes 98.15%, 94.88% and 94.34% of the total purchases respectively. Any constraints or adverse developments in these regions could affect the availability or pricing of raw materials and may have an adverse effect on its business and results of operations. Over the years, it has built relationships with a network of reliable suppliers; during the last three Fiscals, it procured cotton bales from more than 10 Suppliers and top 10 suppliers contribute 82.06%, 91.05% and 71.51% of the total purchase during Fiscals 2026, 2025 and 2024, respectively.
Outlook
Shreedhar Spinners is engaged in the business of manufacturing of yarn. It is equipped with state-of-the-art machinery to produce yarn with the core capability. It is committed to maintaining the highest standards of quality and sustainability in its operations. Its manufacturing facility meets globally recognized quality standards, being ISO 14001:2015 certified for its Environmental Management System, ISO 45001:2018 certified for its health and safety management system and ISO 9001:2015 for Quality Management System. On the concern side, it generally does business with its customers on purchase order basis and does not enter into long term contracts with them. Its inability to maintain relationships with its customers could have an adverse effect on its business, prospects, results of operations and financial condition.
The company is coming out with a maiden IPO of 57,88,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 51-53 per equity share. The aggregate size of the offer is around Rs 29.52 crore to Rs 30.68 crore based on lower and upper price band respectively. On performance front, the revenue from operations of the company for fiscal year 2026 was Rs 14,637.10 lakh as against Rs 13,426.66 lakh for fiscal year 2025, an increase of 9.02%. Profit after tax for the fiscal 2026 was at Rs 617.14 lakh against profit after tax of Rs 341.53 lakh in fiscal 2025, an increase of 80.70%.
With the increasing demand for its products and its strategic objective to broaden its product portfolio, it is in the process of establishing Manufacturing Unit 2 within the same plot of land adjacent to its existing facility. The addition of Unit 2 is designed to strengthen its product mix, enhance its ability to deliver integrated and value-added solutions to its existing clients, and effectively serve a wider base of prospective customers. Further, it aims to maintain good relationship with its suppliers, customers and employees which are the most important factor to keep the company growing. Its business model is based on the client relationships that have been established over a period of time rather than product-based execution approach. Its dedicated and focused approach and efficient and timely delivery, consistent product quality and addressing the customer feedback and concerns has been an essential part in maintaining long term relationship with its clients.
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