Shree Karni Fabcom Investor Presentation: Key Takeaways and Growth Plans

Sandip Raj Gupta

    24/Dec/2024

What's Covered

  • Shree Karni Fabcom is expanding manufacturing capacities with a new dyeing unit and backward integration to boost profitability.
  • Sustainability remains a focus, with solar panel installations and ESG-compliant manufacturing practices underway.
  • Diversifying into defense, artificial flowers, and high-margin sectors to capture premium pricing opportunities.

Shree Karni Fabcom Limited (SKFL), a leader in technical textiles, recently released its investor presentation, showcasing its strategic roadmap, ongoing initiatives, and future growth trajectory. Below are the key takeaways from the presentation:


Company Overview

Shree Karni Fabcom is a B2B manufacturer of specialized technical textiles catering to industries like apparel, luggage, footwear, upholstery, and defense. With cutting-edge facilities, the company provides woven, knitted, and coated fabric solutions.


Strategic Focus on Backward and Forward Integration

The company is transitioning to an end-to-end manufacturer, focusing on backward integration with:

  • A new in-house dyeing unit operational by Q4 FY25, expected to improve margins by 2-3%.
  • Fabric diversification, including nylon and cotton offerings, alongside polyester.
  • Enhanced production capabilities with 1,200 machines operational by Q1 FY26.

Forward integration highlights:

  • Expansion of the finished goods unit to support product innovation and serve new customers.
  • Higher volumes of backpacks, defense-grade fabrics, and other technical textiles.

Capacity Expansion and Sustainability Initiatives

Key capacity upgrades include:

  • Knitting capacity: Scaling up to 4,320 units per day.
  • Weaving capacity: Enhanced to 17,570 meters/day.
  • Coating capacity: Increased to meet rising demand.

On sustainability:

  • Installation of 2 MW solar panels, reducing energy costs.
  • Incorporating R-PET yarn in 20% of products to meet ESG compliance.

Growth in High-Margin Segments

Shree Karni Fabcom is diversifying into high-growth sectors, including:

  • Defense applications such as army jackets, parachutes, and security gear.
  • Artificial flowers and laptop bags to expand its product portfolio.

These ventures are aimed at capturing premium pricing opportunities and enhancing market share.


Certifications and Global Partnerships

The company is pursuing Sedex and WRAP certifications, essential for partnering with multinational corporations. Audits for MNC brands are progressing well, further solidifying its reputation as a reliable supplier.


From the Management's Desk

Managing Director Mr. Rajiv Lakhotia emphasized the transformative impact of their IPO six months ago. With capital expenditures coming to fruition, the company expects stronger financial performance and deeper market penetration.


Looking Ahead

The company aims to achieve:

  • Deeper customer penetration with high-quality, innovative products.
  • Margin optimization through enhanced backward and forward integration.
  • Continued focus on sustainability goals, aligning with global ESG standards.

With strategic initiatives in place, Shree Karni Fabcom is positioned for long-term growth, innovation, and value creation for all stakeholders.


The Upcoming IPOs in this week and coming weeks are Anya PolytechCitichem IndiaSolar91 Cleantech, Rosmerta DigitalIndo Farm, and Avanse Financial.

The Current active IPO is Unimech AerospaceVentive HospitalitySenores PharmaceuticalsCarraro India.

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