Shree Ram Twistex IPO

Shree Ram Twistex Limited IPO Strengths

Integrated Infrastructure and Advanced Technology

Shree Ram Twistex Limited operates a fully integrated spinning facility with advanced technologies, including compact ring spinning and TFO twisting. Equipped with modern European machinery, automated monitoring, and climate-controlled systems, the Company ensures efficiency, consistency, and superior yarn quality. Its diversified, customizable product portfolio strengthens competitiveness across domestic and international textile markets.

Strong Customer Relationships

Shree Ram Twistex Limited has cultivated long-standing relationships with key institutional customers, bulk purchasers, and merchant exporters. Supported by a network of brokers and agents, the Company ensures strong market reach, repeat business, and customer-centric services. Its focus on customised solutions and consistent quality has reinforced reputation, loyalty, and sustained growth over years.

Strategic Location and Storage Capabilities

Shree Ram Twistex Limited’s manufacturing facility, located in Gondal, Gujarat, benefits from excellent connectivity to highways, rail, and ports. With ample land for expansion and modern storage systems, the Company ensures streamlined procurement, efficient inventory management, and timely deliveries. This infrastructure supports scalability, optimises logistics, and strengthens responsiveness to domestic and global customer requirements.

Consistent Financial Growth

Shree Ram Twistex Limited has demonstrated consistent growth in revenues and profitability, supported by operational efficiency and market demand. Its revenues rose from ₹6,278.65 lakhs in Fiscal 2017 to ₹23,159.12 lakhs in Fiscal 2024. A resilient business model, effective cost management, and strategic execution have enabled stability and expansion despite industry challenges and economic disruptions.

Experienced Promoters and Skilled Management

Shree Ram Twistex Limited is guided by experienced promoters and a strong leadership team with deep expertise in the textile sector. Their collaborative approach drives innovation, operational efficiency, and customer-centric strategies. Supported by qualified managerial staff and a skilled workforce, the Company continues to strengthen market presence, scale operations, and pursue future growth opportunities.

More About Shree Ram Twistex Limited

Shree Ram Twistex Limited is engaged in the manufacturing of high-quality cotton yarns. The company produces Compact Ring Spun and Carded Yarns, both combed and carded, along with specialised value-added yarns such as Eli Twist (combed and carded), Compact Slub Yarns, and Lycra-Blended Yarns. These yarns cater to both knitting and weaving applications across diverse end-use segments including denim, terry towels, shirting, sheeting, sweaters, socks, bottom wear, home textiles, and industrial fabrics.

Business Model and Market Presence

The company operates exclusively in the business-to-business (B2B) segment, supplying yarns to:

• Textile manufacturers

• Garment exporters

• Bulk purchasers

• Fabric processors

This focused B2B approach allows Shree Ram Twistex Limited to streamline production, maintain consistent quality, and meet large-scale requirements efficiently. Long-term customer relationships and customised yarn solutions, tailored to technical parameters such as count, twist, and strength, further strengthen its market position.

Manufacturing Facility

The company’s manufacturing operations are centred in Gondal, Rajkot, Gujarat, with a built-up area of nearly 29,947 sq. m. Key features include:

• 17 compact ring-spinning machines with a spindle count of 27,744.

• Production capacity of cotton yarn ranging from Ne 8 to Ne 40 (carded and combed varieties).

• Specialised Eli Twist (Siro) yarns, Compact Slub Yarns for textured fabrics, and Lycra-blended yarns for stretchable garments.

• By-products such as cotton waste, viscose-cotton mix yarn, FP bales, and open-end yarn also contribute to revenue.

Sales and Distribution

Shree Ram Twistex Limited serves both domestic and international markets.

• Domestic sales are executed through direct institutional sales and brokers across Gujarat, Rajasthan, West Bengal, Maharashtra, Tamil Nadu, Madhya Pradesh, Punjab, and Dadra & Nagar Haveli.

• Exports are routed through merchant exporters, who possess expertise in global compliance and trade practices, ensuring smooth overseas delivery.

Sustainability and Growth

With nearly a decade of operational experience, the company integrates advanced technology and sustainability into its processes. A 1.2 MW rooftop solar plant, commissioned in July 2024, already contributes to reducing operational costs and lowering the carbon footprint. Plans for a 6.1 MW solar project and a 4.2 MW wind project underline its commitment to renewable energy and long-term efficiency.

Industry Outlook

India’s textile and apparel market is poised for robust expansion, projected to grow at a 10% CAGR, reaching US $350 billion by 2030—with exports anticipated to hit US $100 billion.
The textile manufacturing segment specifically is expected to scale from US $128.28 billion in 2024 to US $190.57 billion by 2033, at a 4.15% CAGR.

Cotton Yarn Segment Growth

The global cotton yarn market is forecast to grow from US $86.11 billion in 2024 to US $117.79 billion by 2032, at a 4.0% CAGR, with Asia Pacific—the hub including India—holding over 80% market share.

A more optimistic estimate projects the global cotton yarn market value doubling from US $72.57 billion in 2024 to US $149.61 billion by 2034, achieving a 7.5% CAGR; notably, carded yarn currently dominates 40–45% of the segment, and the apparel segment drives the highest demand.

Growth Drivers & Industry Catalysts

• Rising domestic consumption and government stimuli such as the PLI scheme, P.M. MITRA parks, and FDI reforms are fueling expansion.

• Sustainability shifts—notably investments in zero-liquid-discharge tech, clean energy, and eco-friendly fabrics—are accelerating demand for premium cotton yarns.

• Strategic import reliance on high-quality cotton continues: due to domestic shortfalls, India’s ELS cotton imports (notably from the U.S.) are surging, aided by favorable duties and reliability in supply.

How Will Shree Ram Twistex Limited Benefit

• Positioned to benefit from India’s textile industry CAGR of 10% and projected US $350 billion size by 2030, driving greater yarn demand.

• Strong presence in carded and combed yarns aligns with the dominant 40–45% share of carded yarn in the global market.

• Value-added offerings like Eli Twist, Slub, and Lycra-blended yarns cater to the rising apparel demand, the fastest-growing end-use segment.

• Expansion in domestic consumption and government support through PLI and MITRA parks enhances opportunities for bulk B2B supply.

• Sustainability investments, including solar and wind energy, match global buyers’ preference for eco-friendly and low-carbon yarn sourcing.

• Strategic production flexibility (Ne 8 to Ne 40) ensures adaptability to varied customer requirements across denim, shirting, home textiles, and industrial fabrics.

• Export via merchant exporters positions the company to capture growth in Asia Pacific, which dominates 80% of cotton yarn demand.

Peer Group Comparison

Companies	EPS	PE Ratio	RONW (%)	NAV (Per Share)	Face Value	Revenue (in lakhs)
Shree Ram Twistex Limited	2.37	[●]	10.25	21.77	10.00	23,159.12
Peer Group
Ambika Cotton Mills Limited	110.00	13.70	7.52	1,463.33	10.00	82,345.99
Damodar Industries Limited	2.24	15.74	4.45	50.39	5.00	71,538.26
Rajapalayam Mills Limited	31.00	29.68	6.04	508.40	10.00	85,855.86

Key Strategies for Shree Ram Twistex Limited

Setting up Ground-Mounted Solar Power Plant and Windmill for Captive Use

Shree Ram Twistex Limited is expanding its renewable energy portfolio by installing a 6.1 MW solar plant and a 4.2 MW wind project. Designed for captive use, these projects will stabilize energy costs, strengthen operational resilience, and align business expansion with long-term environmental stewardship.

Working Capital Optimization

Shree Ram Twistex Limited aims to strengthen liquidity through better demand forecasting, stricter receivable management, and supplier negotiations. By optimizing inventory turnover, leveraging pledge loans, and expanding financial limits, the company ensures smoother cash flow, supports operational continuity, and sustains scalability in a growing manufacturing business.

Maintain and Expand Long-Term Relationships with Customers and Brokers

Shree Ram Twistex Limited prioritizes building enduring customer and broker relationships based on trust and consistent service. By closely understanding client requirements, offering timely solutions, and maintaining reliability, the company strengthens loyalty, drives repeat business, and creates a foundation for long-term expansion across diverse markets.

Operational Efficiency and Manufacturing Excellence

Shree Ram Twistex Limited focuses on enhancing productivity through modern spinning infrastructure, in-house quality control systems, and process optimization. By reducing waste, improving cost efficiency, and investing in automation, the company ensures high-quality output, strengthens competitiveness, and maintains agility in responding to evolving domestic and international market demands.

Focus on Rationalizing Indebtedness

Shree Ram Twistex Limited plans to reduce borrowings by repaying part of the SIDBI loan used for renewable energy projects. This strategy lowers interest expenses, improves the debt-to-equity ratio, and enhances financial flexibility, enabling reinvestment in core operations while reinforcing commitment to sustainability and responsible capital management.