About Divyadhan Recycling Industries Limited

Divyadhan Recycling Industries is into the business of manufacturing of Recycled Polyester Staple Fibre (R-PSF) and Recycled Pellets. The recycled fibre and pellets are produced from post-consumer PET bottles also known as Polyethylene Terephthalate bottles. The company started its operations in the financial year 2018-19, by manufacturing Recycled Polyester Staple Fibre (R-PSF) at their manufacturing facility based in Baddi, Himachal Pradesh. However, the company is in the trial stage of manufacturing the recycled pellets.

They produce Hollow and Solid Recycled Polyester Staple Fibre, which gives good resilience properties and is used to make premium pillows, cushions and quilts. The recycled fibre is supplied to various industries such as Packaging, home furnishing and Textiles. Its hollow structure adds to its insulating properties, making it suitable for use in a wide range of products including clothing, home furnishings, automotive components, non-woven fabrics, and insulation materials. The recycled pellets are used to manufacture food grade and non-food grade bottles. FSSAI has issued latest instructions dated June 15, 2022, for acceptance criteria for recycled PET for food packaging. Further, they are currently catering to non-food industries requiring recycled bottles for their packaging.

Indian Polyester Fibre Industry
India Polyester Staple Fibre Market has reached USD1.54 billion by 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 4.25% through 2029. Polyester Staple Fibre (PSF) is extensively used in spinning and other textile applications due to its durability, cost-effectiveness, and versatility. In the Indian PSF market, there are two main categories: solid and hollow products. Solid PSF is widely popular in traditional textile manufacturing, known for its strength and resilience. On the other hand, hollow PSF is gaining traction for its unique properties such as lightweightness and excellent insulation. 

However, the widespread use of synthetic fibers like polyester has raised environmental concerns. These fibers are non-biodegradable, posing a significant threat to our ecosystems. To address this issue, the industry must focus on innovation and invest in recycling technologies to ensure the sustainability of PSF production. By adopting these recycling methods, we can minimize the environmental impact and promote a circular economy.

Looking ahead, the future of the Indian PSF market appears promising. The market is expected to witness substantial growth due to rising consumer demand and advancements in manufacturing technologies. Additionally, the growing emphasis on sustainable fashion and the development of recycled PSF present exciting new avenues for growth and expansion. As the industry continues to evolve, it is crucial to prioritize sustainability and explore eco-friendly alternatives to meet the demands of both consumers and the environment.

Polyester Staple Fibre (PSF) is a versatile material derived primarily from raw materials such as Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG). The prices of these commodities have experienced significant fluctuations, introducing a level of instability in the PSF market. 

The market's uncertainties are further compounded by the volatility of upstream MEG, which is anticipated to contribute to increased price fluctuations in the upcoming quarters. This unpredictability not only affects production costs but also poses challenges for manufacturers in accurately forecasting their operational expenses. Consequently, such unpredictability can potentially impede the market's growth in the years to come. Additionally, the PSF market faces additional challenges in the form of alternative fibres like nylon. Unlike PSF, these alternative fibres are less affected by price volatility. This disparity in price stability could potentially lead to a shift in consumer preference, thereby impacting the market for PSF. 

To summarize, while the Indian Polyester Staple Fibre market exhibits significant potential, the volatility in raw material prices remains a prominent challenge. In order to ensure sustainability and foster growth, it is crucial for stakeholders within the industry to devise effective strategies that mitigate the adverse impact of this volatility and navigate through these uncertain market conditions. By doing so, they can position themselves for success and capitalize on the market's opportunities.

Based on the category of product, the solid segment emerged as the dominant player in the Indian market for Polyester Staple Fibre in 2023. Solid Polyester Staple Fibre (PSF) finds ubiquitous use across a wide array of industries, including automotive, textiles, and furniture. Its versatility is one of the key reasons why it dominates the market. Solid PSF is used in various applications ranging from apparel manufacturing to home furnishings due to its high resilience, excellent bulkiness, good insulation properties, and easy blendability with other fibres. 

In the automotive industry, solid PSF is utilized in the production of car seats, carpets, and interior fabrics, providing durability and comfort to passengers. In the textile industry, it is commonly used to create garments, upholstery, and bedding, offering a soft and luxurious feel. Additionally, in the furniture industry, solid PSF is employed to make cushions, pillows, and mattresses, ensuring optimal support and longevity. 

Moreover, solid PSF is not only versatile but also cost-effective, further enhancing its appeal. The production process for solid PSF is relatively straightforward and less expensive compared to other types of fibres. This costeffectiveness translates into lower prices for the end consumer, making solid PSF a preferred choice for many manufacturers. 
Overall, the exceptional attributes and wide-ranging applications of solid PSF make it an indispensable material in various industries, catering to the needs of both manufacturers and consumers alike.

West India emerged as the dominant player in the India Polyester Staple Fibre Market in 2023, holding the largest market share in terms of value. In West India, particularly in states like Maharashtra and Gujarat, there exists a thriving and robust textile industry. This industry stands as one of the largest consumers of PSF (polyester staple fibre) in the country. The region boasts some of the biggest textile mills, which not only contribute significantly to the demand for PSF but also play a vital role in shaping the overall textile and apparel sector. 

The strategic geographical location of West India also adds to its dominance in the PSF market. Situated along the western coastline, this region enjoys the advantage of easy importation of raw materials and seamless exportation of finished goods. This accessibility gives a competitive edge to manufacturers based in this area, propelling their growth and success in the industry. 

With its well-established textile industry, thriving apparel sector, and strategic location, West India continues to be a major player in the demand for polyester staple fibre.

DIVYADHAN RECYCLING INDUSTRIES LIMITED COMPETITIVE STRENGTHS
1. Own Manufacturing facilities
2. Experienced management and Promoter
3. Small order size help in getting more orders from small scale buyers
4. Established relationship with customers

DIVYADHAN RECYCLING INDUSTRIES LIMITED STRATEGIES
1. To increase their manufacturing capacity by purchase of plant and machineries
2. Capitalize the opportunity in the Recycled polyester Fiber and Pellets Industry
3. Focus on consistently meeting quality standards
4. Customer Acquisition

DIVYADHAN RECYCLING INDUSTRIES LIMITED RISK FACTORS & CONCERNS
1. Majority of their state wise revenues from operations for the last 3 years is majorly derived from Himachal Pradesh.
2. The company is dependent on one of its customers named PV Fibers LLP, who contributes significant portion of revenue of the company during the last 3 financial years and stub period.
3. The Company derive signification portion of revenue from Recycled PET Fiber and any reduction in the sale of such products could have an adverse the business, result of operations and financial condition.
4. The Company’s operation and growth is dependent upon successful implementation of the business strategies.