About Kaytex Fabrics Limited

BUSINESS OVERVIEW

Kaytex Fabrics, established in 1996 in Amritsar, Punjab, is a fast-fashion fabric solutions and manufacturing company that seamlessly blends technology, design innovation, and traditional craftsmanship. Operating across the entire textile value chain—from yarn to finished fabric—the company is equipped to rapidly respond to shifting market demands, positioning itself as a responsive and forward-looking player in the dynamic fashion textile industry.

The company specializes in working with a broad spectrum of fibres, including cotton, viscose, modal, acrylic, nylon, linen, and polyester. With a strong command in digital textile printing, Kaytex offers customizable, high-resolution prints that cater to short production runs, the demands of fast fashion, and the rise of on-demand orders. These digitally printed fabrics are widely applied across apparel, home textiles, accessories, industrial fabrics, and interior décor.

To ensure technological superiority, the company employs reactive digital printing (Hopetech) for cotton and viscose fabrics, while sublimation printing is used for polyester. Its manufacturing infrastructure is bolstered by Sulzer weaving machines, electronic jacquard looms, multi-head computerized embroidery machines, and state-of-the-art dyeing and processing equipment. An in-house design team consistently drives trend-based fabric development, allowing the business to introduce customized designs and seasonal collections that reflect both tradition and innovation.

Kaytex’s diverse product portfolio includes a wide range of fabrics and fashion products such as ready-to-stitch suits, co-ord sets, shawls, scarves, and stoles. These products are meticulously designed to balance modern fashion trends with traditional textile techniques, making them appealing to a broad demographic.

The company operates through three core business verticals. As a Brand Enabler, it supports apparel brands by providing on-trend fabrics and design services, managing product development and execution. Through its Own Brands—Rasiya, Kaytex, and Darbaar-e-Khaas—it offers ethnic wear collections targeted at Tier 2 and Tier 3 cities in North India. In the Non-Branded Segment, the company supplies cost-effective and flexible fabric and garment solutions to wholesalers, retailers, and bulk buyers, catering to demand where branding is not essential.

Kaytex’s technology-driven manufacturing capability is a strategic strength. Its digital printing technology delivers vibrant, photo-quality, customizable prints on various fabrics, with a focus on fast turnaround times and reduced waste. The use of computerized jacquard looms facilitates the production of complex, multi-coloured woven patterns, while weaving and dyeing processes such as jigger and jet dyeing, mercerizing, sanforizing, and hot air stenters enable the creation of a wide variety of fabric textures, including plain, twill, satin, and jacquard. Additionally, CAD-based computerized embroidery ensures scalable, consistent design quality.

Strategically, Kaytex is well-positioned within the global digital textile printing market, which is projected to grow at a CAGR of 12.8% from USD 5.67 billion in 2024 to USD 11.67 billion by 2030. In India, the digital textile printing market is also expected to expand significantly—from USD 497.4 million in 2020 to USD 1,212.3 million by 2030, growing at a CAGR of 11.0%. This growth is driven by a surge in demand for customized textile products, technological advancements, and an increasing shift toward sustainable production methods.

Kaytex Fabrics’ strategic advantage lies in its ability to merge its rich textile legacy with modern digital innovation. By offering design-forward, quality-centric solutions across both branded and non-branded segments, the company maintains the agility to serve a broad and evolving customer base, positioning itself as a key player in the Indian textile landscape.

As of June 30, 2025, the company had 612 permanent employees and workers. The Banker to the company is HDFC Bank Limited.

INDUSTRY ANALYSIS

Overview of the Digital Fabric Printing Market in India

Fabric Production Landscape

India is one of the largest producers of textiles and apparel globally. It holds the distinction of being the top producer of cotton and jute, and the second-largest producer of silk, contributing to a massive 95% of the world's hand-woven fabric. The textile and apparel sector is a cornerstone of the Indian economy, accounting for 2.3% of the national GDP, 13% of industrial output, and 12% of total exports. With textile exports valued at USD 34.07 billion in FY2024, the country aims to push this figure to USD 100 billion by 2030.

Fabric production in India is an extensive and intricate process, beginning with raw fibre procurement and ending with finished garments. Both natural fibres like cotton and synthetic materials are utilized in a multi-step production cycle where each stage feeds into the next.

India’s Textile and Printing Industry

India’s textile sector generated an impressive USD 165 billion in revenue in CY 2023. This industry encompasses every stage of the value chain—from raw material cultivation to the manufacturing of apparel and home textiles. It also plays a pivotal role in employment generation, especially in rural areas, and forms a major part of the export economy.

Within this broad framework, textile printing has emerged as a significant sub-segment, contributing USD 54.3 billion in 2023. While traditional printing methods such as screen and rotary printing remain dominant, digital printing is quickly gaining momentum due to its technological and environmental advantages.

Current Market Dynamics

India’s textile printing market has grown from USD 47.8 billion in 2020 to USD 56.9 billion in 2024, at a CAGR of 4.4%. While digital textile printing currently comprises a small share (~1%) of this market, it is witnessing a steady uptick.

The slow adoption is primarily due to high initial investments in digital equipment and the perceived cost-efficiency of traditional printing for bulk production. However, digital printing offers several strategic advantages:

• Design Flexibility: Enables detailed, vibrant, and customizable designs.

• Operational Efficiency: Eliminates the need for costly screens and setup, reducing waste and lead time.

• On-Demand Production: Well-suited for short runs and personalized orders, catering to modern fashion cycles and consumer demand.

As the Indian textile sector leans into niche markets and shorter production cycles, the role of digital printing is expected to grow significantly.

Indian Digital Textile Printing Market Outlook

The digital textile printing segment in India has grown from USD 497.4 million in 2020 to a projected USD 648.4 million by 2024, growing at a CAGR of 6.85%. This growth is driven by:

• The rising demand for customization and personalization

• Technological advancements in digital printing

• Increasing emphasis on sustainability and eco-friendly methods

• The expansion of fast fashion and e-commerce platforms

India's long-standing textile infrastructure, supported by various production clusters across the country, provides a strong base for the expansion of digital printing. With over 1,000 digital textile printing service providers operating as of CY 2023, the segment is witnessing rapid expansion.

Dye-sublimation technology, especially for polyester fabrics, is a key innovation enabling high-speed printing of 15,000–20,000 sq. meters/day. Although digital printing currently contributes less than traditional rotary printing, it is projected to reach parity by 2030, driven by increasing demand and evolving production needs.

Conclusion

While digital textile printing in India is still at an early stage, its advantages in design flexibility, sustainability, and responsiveness to market trends position it for robust growth. As equipment becomes more affordable and demand for fast, customized production increases, digital printing is set to play a transformative role in the Indian textile industry.

BUSINESS STRENGTHS

a) Integrated Manufacturing Capabilities
A fully integrated production facility combining digital printing, weaving, jacquard, and embroidery capabilities enables end-to-end fabric creation under one roof. This ensures consistent quality, faster lead times, and cost-efficient operations.

b) Early Adoption of Digital Printing Technology
Digital textile printing has been integrated into core operations, allowing high-precision, customizable designs with faster turnaround and minimal waste. This aligns with the global shift toward sustainable, on-demand textile production. The global digital textile printing market is projected to grow from USD 5.67 billion in 2024E to USD 11.67 billion by 2030F (CAGR of 12.8%), while India's market is expected to reach USD 1,212.3 million by 2030F, growing at 11.0% CAGR.

c) Diversified Market Coverage Across Geographies and Segments
Operations span Tier 1 to rural markets, addressing branded segments through partnerships with apparel brands in Tier 1 and 2 cities, and directly catering to consumers in Tier 3, Tier 4, and semi-urban areas via in-house brands and non-branded fabric offerings. This dual-channel approach ensures balanced reach across premium and value-driven segments.

d) Strong Distribution and Broker Network
A well-established distribution and broker network supports national reach, with 154 distributors and 71 brokers as of March 31, 2025. Long-standing supplier and third-party distributor relationships enable efficient supply chain management and market scalability.

e) Consistent Financial Growth
Demonstrated strong financial performance across recent fiscals:

• Revenue from operations: ₹15,278.73 lakhs (FY25), ₹12,494.14 lakhs (FY24), ₹9,918.84 lakhs (FY23)

• EBITDA: ₹3,006.22 lakhs (FY25), ₹2,242.60 lakhs (FY24), ₹1,278.83 lakhs (FY23)

• PAT: ₹1,690.47 lakhs (FY25), ₹1,130.80 lakhs (FY24), ₹559.14 lakhs (FY23)

• Debt-to-equity ratio: 0.76x (FY25), 1.06x (FY24), 1.28x (FY23)

f) Experienced and Visionary Leadership
Led by promoters with over 50 years of combined industry experience. Sanjeev Kandhari (CMD) brings 30 years of strategic leadership, while Amit Kandhari (WTD & CFO) oversees finance, compliance, and operations. Shelly and Priti Kandhari contribute expertise in design, procurement, finance, and administration, supporting the company’s sustained growth and operational excellence.

BUSINESS STRATEGIES

a) Expansion of Digital Textile Printing Capabilities
Digital textile printing, including direct-to-garment methods, enables high-resolution, intricate, and customizable prints across a wide range of applications—fashion, home décor, sportswear, and industrial fabrics. Key advantages include design flexibility, cost-efficiency, reduced waste, and environmental sustainability. As global demand for personalized products grows, the digital textile printing market is projected to reach USD 11.67 billion by CY 2030F at a CAGR of 12.8%. In India, market revenue is expected to rise to USD 1,212.3 million by CY 2030F, driven by customization trends, eco-conscious consumers, and advancements in technology.

b) Product Value Enhancement and New Product Development
Focus remains on delivering a broad range of fabrics and ready-to-stitch garments at competitive prices while enhancing value through embroidery, handwork, and detailed craftsmanship. These additions improve product appeal, address niche market demands, and support higher customer satisfaction and improved profit margins.

c) Technological Integration and Sustainability Focus
State-of-the-art manufacturing facilities are equipped with high-performance machinery, including Sulzer weaving, Staubli jacquard, Dhall mercerising and shrinkage ranger machines, Hopetech digital printers, and Harish stenters. These systems enable versatile, high-quality production while promoting energy efficiency and sustainable practices, ensuring responsiveness to diverse fabric needs across global markets.

d) Multi-Pronged Market Expansion Strategy
A comprehensive growth plan targets expansion in Tier 3, Tier 4, and rural markets through proprietary brands, catering to the rising demand for affordable, quality textiles. Simultaneously, technical capabilities are leveraged to serve leading apparel brands and institutional buyers with customized, innovative solutions, supporting scalability and competitive advantage across market segments.

e) Establishment of Dedicated Sales Offices
A dedicated sales office in Mumbai, opened in June 2024, enhances market presence in West and South India. Strategically located at 454B, 4th Floor, Kewal Industrial Estate, Lower Parel, the office strengthens engagement with apparel brands, exporters, and wholesalers. Its proximity to logistics hubs facilitates international trade expansion. Additionally, the Mumbai office supports entry into the menswear segment, broadening product offerings and targeting high-growth areas within men’s fashion.

BUSINESS RISK FACTORS & CONCERNS

1. Geographic Concentration Risk
During Fiscal 2025, 2024, and 2023, 89.68%, 94.81%, and 91.05% of revenue from operations, respectively, were derived from domestic sales concentrated in Northern India. Such regional dependence exposes the company to localized economic, political, and market risks.

2. Vulnerability to Consumer Preferences and Fashion Trends
As a fast fashion fabric manufacturer, the company is highly sensitive to shifts in consumer tastes and evolving fashion trends, especially within Indian ethnic and fusion wear. A decline in demand for traditional fabrics among younger consumers or failure to adapt to rapid trend changes could adversely affect sales and market competitiveness.

3. Challenges in Digital Textile Printing Operations
Digital textile printing, adopted in 2020, is a key growth driver. However, limited experience, high capital investment, operational complexities, and market acceptance pose risks. Failure to manage scalability, technology upgrades, or print quality expectations may hinder growth and impact profitability.

Summary :
Kaytex Fabrics faces significant risks due to geographic revenue concentration in Northern India, dependence on rapidly changing fashion trends, and operational challenges in scaling its recently adopted digital textile printing technology. These factors could affect market share, revenue stability, and long-term growth.