Filatex India bets on polyester recycling and renewables to power next phase of growth

President and General Manager Madhu Sudhan Bhagia said the company has built a 75 -ton polyester recycling facility on a day, the first major -scale attempt to convert textile waste into chipset and thread. He said that polyester wastes have become one of the most urgent environmental concerns because they cannot be disintegrated biologically and are usually in regular storage areas. “We have developed and patented a technology to recycle textile waste to chips, which can be returned to the yarn.

It is estimated that the facility, which is expected to be assigned until August-September 2026, is expected to be the cost. La300 Crore, through internal accruals. While the company deals with this as a test project, Bhagia said Filatex plans to replicate similar facilities globally after proven that technology is commercially applicable. Uz We want to establish such plants everywhere where waste is present and the economy makes sense, ”he added.

The company expands the capacity of approximately 130-150 tons of yarn production in its existing units and is also expected to be online. It also invests in renewable energy to strengthen its operations. As of January, more than half of its consumption will come from sustainable sources through a prisoner project, where Filatx will have 26% equity shares. “This will not only reduce power costs, but will also strengthen our sustainability profile, B Bhagia said. The company also establishes a community winning project to create steam for plants and supply it to neighboring industries.

Investments and returns

Filetex listed almost capital expenditures La650 Crore in these initiatives. It is expected to generate income around the recycling facility alone LaThe renewable project is likely to save. La18-20 crore a year. Steam project containing a spending La80 CRORE, is expected to be added La60 crore for annual revenues after costs.

“We must see the full benefit reflected in our results in the 27 financial year,” Bhagia said.

Polyester now accounts for about 70% of global fiber consumption. “In the last 20 years, 95-96% of the increasing textile demand has been greeted by human-made fibers in the last 20 years.” Potatex, which is stagnant and polyester sportswear and quick traction in fashion, has a strong demand.

India is the second largest global polyester manufacturer after China. “Beyond China and India, no other country has a meaningful scale, Ba Bhagia said, the lack of weak margins and machine orders will limit global capacity additions and support the levels of use for Indian producers.

Bhagia underestimated concerns about trade barriers and geopolitical changes. “Tariffs can create short -term adjustments, but not a big problem,” he said. Exports currently constitute only 1-2% of Filatx income due to high raw material costs.

Competition and view

Fleatex has about 8% of India’s polyester yarn market and directly competes with the Reliance Industries’ polyester section and global players. “Our products are sold in half of the pricing of Reliance. The sector will differentiate us with competitive, but recycling and renewable energy resources.” He said.

The highly debated China was suspicious of a plus strategy. “No one really changes from China unless there are tasks or incentives. Receivers will not even pay a slight premium, and China makes no one left behind the price. It seems good to say, but it doesn’t really happen,” he said.

Fileatex shares saw volatility despite stable foundations. But Bhagia is confident. “The stock is extremely worthless, so we bought ourselves. We are confident that our growth orbit and margin will convince the investors after these projects have started to operate.”