Kaytex Fabrics
- Kaytex Fabrics is coming out with an initial public offering (IPO) of 38,78,400 equity shares in a price band Rs 171-180 per equity share.
- The issue will open on July 29, 2025 and will close on July 31, 2025.
- The shares will be listed on SME Platform of NSE.
- The face value of the share is Rs 10 and is priced 17.10 times of its face value on the lower side and 18.00 times on the higher side.
- Book running lead manager to the issue is Socradamus Capital.
- Compliance Officer for the issue is Rubina Mahajan.
Profile of the company
Kaytex Fabrics is a fast-fashion fabric solutions and manufacturing company, combining technology, design, and traditional craftsmanship to deliver textile and fashion products. It manages the entire process - from yarn to finished fabric production - ensuring quality and the ability to quickly adapt to changing market demands. It specializes in creating fabrics from a variety of fibres, including cotton, viscose, modal, acrylic, nylon, linen, and polyester. Its focus on digital printing - allows it to create customizable designs suited to the fastpaced nature of the fashion industry.
Digital textile printing referred to as direct-to-garment or digital garment printing, is a process of reproducing variety of digital images/prints on textiles and garments using specialized or modified inkjet technology. It works perfect for printing photos, detailed patterns, graphically complex designs and tonal transitions. It has a wide range of end-use applications across various fashion and apparel, home textiles, interior design, advertising and promotional materials, sportswear and active wear, accessories, industrial applications and home décor. Its advantages over conventional printing methods include: high-quality printing, customization and flexibility, time efficiency, cost-effectiveness, environmental sustainability, versatility in fabric types, consistent quality and access to global market. Digital textile printing, while still a relatively small segment, is gradually gaining traction due to design flexibility and elimination of costly screens and preparation processes, reducing production time and minimizing waste, increasing demand for digital printing significantly.
In addition to fabrics, the company has expanded into fashion products in womenswear, offering ready-to-stitch suits, co-ord sets, shawls, scarves and stoles. By combining fashion trends with craftsmanship, it creates products that meet the needs of today’s consumers. Its approach and innovativeness allow it to deliver products that cater to both brands and individual customers as per current market situation.
Proceed is being used for:
- Funding capital expenditure for construction of additional warehouse facility in Amritsar
- Funding capital expenditure for construction of dedicated sales office in Amritsar
- Funding capital expenditure towards purchase of advanced fabric processing system for its existing printing, dyeing and processing unit in Amritsar
- Funding its incremental working capital requirements
- General corporate purposes
Industry Overview
India is one of the world’s largest producers of textiles and apparels. The country is world’s largest producers of cotton and jute, second largest producer of silk, contributing to 95% of the world’s hand-woven fabric. The domestic apparel and textile industry in India contributes to around 2.3% of the country’s GDP, 13% to industrial production, and 12% to exports. India has a 4% share of the global trade in textiles and apparel, where the textile exports are at $34.07 Billion in FY2024, and is likely to reach $100 Billion by 2030. India's fabric production process is a comprehensive and multi-step procedure that transforms raw fibres into finished textiles. This industry is vital to the country's economy, leveraging both natural and synthetic fibres.
Meanwhile, digital textile printing has emerged as a revolutionary alternative. Digital textile printing was introduced in the late 1980s as a possible replacement for analog (screen) printing3 with the advent of inkjet technology and innovative ink that made it possible for printers to print directly on fabric. The Indian digital printing market, while still a relatively nascent segment, is experiencing rapid growth. In CY 2023, it generated $602.8 million in revenue, showcasing its immense potential. Digital printing offers several advantages over conventional methods, including greater design flexibility, faster turnaround times, and reduced environmental impact. As technology continues to advance and costs decrease, digital printing is poised to become increasingly prevalent across various textile applications, from apparel and home furnishings to industrial textiles. The Indian textile printing market is a significant contributor to the country's economy, with revenues steadily increasing from $47.8 billion in 2020 to $56.9 billion in 2024, exhibiting a CAGR of 4.4%. Within this expansive market, digital textile printing, while still a relatively small segment, is gradually gaining traction.
Indian textile industry is a strong, well-established sector, with multiple clusters operating across the country contributing to the supply chain effectively for many centuries. In this well-established sector, launch of digital textile printing has opened roads for many new possibilities to suit the demands and expectations of new-age apparel designers along with the preference of the present generation. The rise of fast fashion in India has created a demand for quick and flexible production processes, which digital textile printing can meet. Similarly, digital textile printing technology allows manufacturers to produce customized and on-demand textile products. Being a recent technology, digital textile printing has a contribution less than the traditional rotary printing technology, while it is expected to compete with rotary printing process by 2030.
Pros and strengths
Single stop solution for all textile needs: The company serves as a one-stop solution for all textile needs, offering a fully integrated production unit that combines advanced capabilities such as digital printing, weaving, jacquard, and embroidery. The setup of Digital Printing, Weaving, Jacquard ad Embroidery allows the company to handle every step of fabric creation in-house, ensuring quality, faster delivery, and cost-effective production. Having all these capabilities under one roof saves time, reduces costs, and ensures consistent quality. It controls the entire process, from design to finished product, giving it customers exactly what they need without relying on outside vendors. This setup allows it to deliver trendy, high-quality products quickly and efficiently, whether it’s for domestic or international markets.
Adapter of digital printing technology in its operations: The company has adopted digital printing technology as part of its operational strategy. This technology enables the creation of detailed and customizable designs on fabrics with precision and speed. Unlike traditional methods, digital printing is efficient, reduces material waste, and supports both small and large order quantities, making it suitable for the fast-moving fashion industry. This approach has helped improve its production processes and enhance its ability to respond to changing trends and customers’ requirements, allowing it to offer textile solutions aligned with market needs.
Well established distribution network: It has built a strong and efficient distribution network that ensures its products reach customers across various markets, from Tier 1 cities to smaller towns. This network allows it to serve a wide range of customers, including wholesalers, retailers, and apparel brands, with timely and seamless delivery of fabrics and garments. Its ability to maintain a consistent supply across geographies strengthens its market presence and supports steady growth. As on March 31, 2025, the company had 154 distributors in India which was instrumental in an effective supply-chain management and helped augment its sales across geographies. It is supported by third party distributors across geographies.
Risks and concerns
Geographical constrain: The company derived a significant portion of its revenue from its customers in Northern India. The company has garnered 89.68%, 94.81% and 91.05% its revenue from Northern India in FY25, FY24 and FY23 respectively. Due to a significant concentration of its revenues in this region, it is highly impacted by risks specific to these geographies, such as civil unrest as well as other adverse social, economic and political events in these states, natural disasters, regional conflicts, and other unforeseen events and circumstances. If any of these risks materialise or if there is a significant downturn in these states, its results of operations and future profitability could be adversely impacted.
Business is seasonal in nature: The company’s business is seasonal in nature, with higher sales volumes during specific periods, such as festive seasons, weddings, and other cultural events. As a result, its revenue and cash flows are often concentrated in certain months of the year, which could lead to fluctuations in its financial performance across different quarters. The demand for traditional Indian wear fabrics and garments, including digitally printed fabrics, jacquard suits, shawls, stoles, and sarees, tends to increase significantly during festive seasons and wedding seasons in India and other markets with a large Indian diaspora. However, during non-festive or off-peak periods, it may experience a slowdown in orders, leading to under-utilization of its manufacturing capacities, lower sales volumes, and reduced profitability in those periods.
No long-term agreements with a majority of its customers: The company’s top 15 and top 20 customers contribute a significant portion of its revenue from operations. Its failure or inability to continue such relationship for any reason (including, due to failure to negotiate acceptable terms or adverse change in the financial or economic conditions) could have a material adverse impact on its business, results of operations, financial condition and cash flows. Additionally, as it does not bind a majority of its customers to any long-term agreements specifying a certain volume of business required to be transacted between it, the company’s customers may terminate their relationship with it, with or without cause, with no advance notice and without compensation. Consequently, there is no commitment on the part of the customer to continue to place new purchase orders with it and as a result, its sales from period to period may fluctuate significantly.
Outlook
Kaytex Fabrics Limited is a fast-fashion manufacturer that combines technology, creative design, and craftsmanship to deliver high-quality textiles. The company specializes in fabrics from diverse fibres like cotton, viscose, and polyester. The company is single stop solution for customers enabled by an integrated unit with multiple capabilities across digital printing, weaving, jacquards, and embroidery. On the concern side, the company’s revenue from operations from domestic sales from its customers in Northern India, which exposes it to risks specific to these Indian geographies and market. Moreover, its business is seasonal in nature, which could adversely affect its financial performance.
The company is coming out with a maiden IPO of 38,78,400 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 171-180 per equity share. The aggregate size of the offer is around Rs 66.32 crore to Rs 69.81 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased by 22.29% to Rs 15,278.73 lakh for Fiscal 2025 from Rs 12,494.14 lakh for Fiscal 2024. Moreover, the company incurred a profit of Rs 1,690.47 lakh during the Fiscal 2025, as compared to a profit of Rs 1,130.80 lakh during the Fiscal 2024.
Digital textile printing referred to as direct-to-garment or digital garment printing, is a process of reproducing variety of digital images/prints on textiles and garments using specialized or modified inkjet technology. It works perfect for printing photos, detailed patterns, graphically complex designs and tonal transitions. As part of the company’s future growth strategy, it is committed to significantly expanding its digital printing capabilities to meet the evolving demands of the industry. Digital printing represents a transformative technology in textile manufacturing, offering unparalleled precision, customization, and efficiency. This expansion will enable it to produce vibrant, high-quality designs on a wide range of fabrics, aligning with the fast-changing trends of the global fashion market.
