About Cedaar Textile Limited

BUSINESS OVERVIEW

Cedaar Textile Company offers one of the widest ranges of yarns, including Raw White Yarns, Mélange Yarns, Solid Top Dyed Yarns, and Grey Fancy Yarns in Cotton, Polyester, Acrylic, Viscose, Tencel, Modal, and other fibres. All yarns are produced with a strong emphasis on sustainability, using 100% Organic and Recycled Fibres (Polyester & Cotton) to promote a green environment and conserve natural resources.

The company’s strategic focus includes Innovation, Customer Orientation, R&D, Technology Upgradation, Digitalization, ERP Integration, Continuous Improvement, and a shift towards Green Energy.

Product offerings span across Yarn, Technical Textile IFR, Fabrics, and Dyed Yarn. It specializes in high-quality Mélange Yarn used in household textiles, woven goods, and hosiery.

Aimed at catering to premium global and domestic clients, especially those manufacturing garments for renowned fashion brands, the production process starts from sourcing raw materials and blends fibres like Cotton, Polyester, Viscose, Acrylic, and others.

The business is structured into six core yarn verticals:

1. Mélange & Dyed Yarns

2. Specialty Yarns

3. Sweater Yarn Range (Count 2/20 Ne to 2/40 Ne)

4. Raw White Yarns (Count NE 16s to NE 40s) for Knitting and Weaving

5. Cone-Dyed Yarns (Dyeing Capacity: 4 MT/day)

6. Sustainable Yarn Products

As of June 01, 2025, the company have total 583 permanent employees. The Banker to the company is HDFC Bank Limited.

INDUSTRY ANALYSIS

Overview of the Indian Textile Market

India's textile sector is one of the oldest and most diverse industries in the country, with roots tracing back centuries. It encompasses a wide spectrum of operations—from traditional hand-spun and hand-woven textiles to highly mechanized, capital-intensive mills. A core strength of this industry lies in its broad and robust raw material base, which includes both natural fibres like cotton, jute, silk, and wool, as well as synthetic fibres such as polyester, viscose, nylon, and acrylic.

The decentralised segments—particularly power looms, hosiery, and knitting—make up the largest share of the industry. This sector also maintains strong linkages with agriculture, especially in sourcing raw materials like cotton. Furthermore, the cultural and traditional significance of textiles in India gives the industry a unique identity, setting it apart from other sectors.

India’s textile industry has the capability to cater to a wide array of market demands, serving both domestic and international consumers. According to CRISIL Ratings, the organised retail apparel segment is expected to witness 8–10% revenue growth in FY25, propelled by improved consumer demand following a normal monsoon, lower inflation levels, and festive and wedding season demand. The growing preference for affordable, fashionable clothing that mimics high-end designs is also expected to drive sales.

To stimulate investment and job creation, the Indian government has launched multiple schemes, including:

• Scheme for Integrated Textile Parks (SITP)

• Technology Upgradation Fund Scheme (TUFS)

• Mega Integrated Textile Region and Apparel (MITRA) Park Scheme

Cotton Yarn Spinning Process

Cotton, a soft and fluffy natural fibre, is widely used to manufacture a variety of products including garments, towels, socks, earbuds, and even medical supplies. The transformation of cotton fibres into yarn is a crucial initial step in textile manufacturing, known as spinning.

In spinning, strands of fibres are twisted to form yarn using different types of spinning technologies—primarily ring spinning, rotor spinning, and air-jet spinning.

For synthetic fibres, the polymer is first melted or chemically dissolved into a fluid form, then extruded through a spinneret. As the polymer cools, it solidifies into filament fibres.

Stages in Cotton Processing:

1. Preparatory Processes

2. Spinning

3. Weaving

4. Finishing

Cotton Yarn Spinning – Key Steps:

• Cotton fibres are drawn out and twisted into yarn.

• The yarn is guided through a spinning frame, passing through multiple rollers that rotate at increasing speeds.

• It is then wound onto bobbins in a single, continuous operation involving drafting, twisting, and winding.

• The completed yarn bobbins are sent for further processes like bleaching, weaving, and dyeing.

Weaving and Finishing

In the weaving process, two yarn sets are interlaced at right angles—either manually or with machines—to create fabric. The woven cloth then undergoes finishing, where it's treated with bleaches, dyes, and other agents to improve appearance, texture, and quality before being turned into consumer products.

BUSINESS STRATEGIES

1. Enhance Financial Performance through Operational Efficiency
Focus on cost optimization, improved supply chain management, and Time and Motion studies to drive efficiency. Emphasis on eco-friendly practices such as the adoption of solar energy and sustainable production methods.

2. Expand Production Capacity and Optimize Resource Utilization
Strategic planning for increasing immediate and future capacity through investment in new spinning and dye house machinery, along with resource-based production and financial planning.

3. Reduce Energy Costs with Solar Energy Adoption
To counter rising energy costs in spinning operations, the company is commissioning a solar power plant, enabling cost-effective and sustainable energy usage without compromising product quality.

4. Advance Sustainability and Environmental Initiatives
Expansion into 100% recycled yarns for garments to meet rising demand for sustainable products. Implementation of waste management systems, effluent treatment for wastewater irrigation, and pollution control measures for environmental protection.

5. Diversify Product Portfolio
Entry into 100% recycled yarn segment and expansion into fabric dyeing to boost sales and capture new market opportunities.

6. Upgrade and Expand Dye House Capacity
The dye house serves both in-house production and job work. Plans include installation of upgraded machinery to increase dyeing capacity and operational efficiency.

BUSINESS RISK FACTORS & CONCERNS

1. Single Production Facility Dependency
Operations are entirely dependent on a single production facility in Punjab. Any disruption due to equipment failure, natural disasters, labor unrest, pandemics, or regulatory directives could adversely affect business continuity and financial results.

2. Export Risks – Bangladesh Market Exposure
A significant portion of revenue is derived from exports to Bangladesh (25.45% in 9M FY24). The region’s political instability, strikes, border tensions, and financial system vulnerabilities pose risks of trade delays, policy unpredictability, reduced demand, and payment defaults. Current export orders worth ₹1,516.73 lakhs are subject to these risks.

3. Third-Party Logistics Dependency
Reliance on external logistics providers for transportation and warehousing introduces risk. Disruptions or reduced service quality from these providers, especially in the absence of long-term contracts, may impact the supply chain and timely delivery of goods.

4. Delays in Machinery and Solar System Procurement
Orders for expansion-related machinery and a Grid-tied Solar PV Rooftop System are yet to be placed. Any delay could increase implementation costs and postpone operational timelines. Cost estimates are based on third-party quotations, which are time-sensitive and subject to revision.

Cedaar Textile faces a range of operational, geopolitical, logistical, and implementation-related risks that could impact its financial performance, export stability, and business expansion plans.