K K Silk Mills
- K K Silk Mills is coming out with an initial public offering (IPO) of 75,00,000 equity shares in a price band of Rs 36-38 per equity share.
- The issue will open on November 26, 2025 and will close on November 28, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 3.60 times of its face value on the lower side and 3.80 times on the higher side.
- Book running lead manager to the issue is Axial Capital.
- Compliance Officer for the issue is Saachi Rajesh Madnani.
Profile of the company
K K Silk Mills is engaged in the business of manufacturing of fabrics as well as garments. Its range of garment products covers all the age group segments such as kids wear, men’s wear, women’s wear. It uses variety of knitted fabrics such as 100% cotton, 100% polyester, blended (cotton and polyester) and printed polyester fabrics in the production of garments. It manufactures the fabric which used in variety of products such as mens’ shirts wear- formal and casual wear, shervani material, ladies wear - dress material, burkha material, kushan cover material etc. It sells its knitted fabrics to domestic and international garment manufacturers. It has around 5422 sq. mtrs. size area manufacturing plant located at Umbergaon, Valsad.
It understands the importance of producing high-quality products, which is why it uses the finest microfibers to create its fabrics. Its extensive product line includes a wide range of plain, twill, sateen, dobby, structured, and fil-afil fabrics, each of which is made with the utmost care and attention to detail. With a commitment to quality, innovation and customer satisfaction, it is dedicated to become trusted manufacturer in the textile and garment industry. It is committed to providing its clients with a range of products that not only align with international fashion standards, but also set new standards for quality and design. Its aim is to offer a collection of suiting and shirting fabrics, corporate wear, men's wear, and ready-made garments that not only meet, but surpass the expectations of its clients and elevate their style.
The company’s vision is to take the art of shirting and suiting fabric production to new heights. It strives to master the manufacturing process, utilizing the latest technologies to produce fabrics of exceptional quality. Its commitment to excellence and attention to detail is evident in every product it creates, and its passion for innovation drives it to continually improve and elevate its offerings. The key to success is not only in the products it offers, but also in the level of customer satisfaction it provides. Its goal is to exceed its clients' expectations and become their trusted partner in the textile and garment industry. With a focus on quality, innovation, and customer service, the company is dedicated to delivering a premium collection of products that will fulfil their fashion equation and help them achieve their style goals.
Proceed is being used for:
- Funding towards capital expenditure for replacement of plant & machineries
- Full or part repayment and/or prepayment of certain outstanding secured borrowings availed by the company
- General corporate purpose
Industry Overview
India’s textiles sector is one of the oldest and most diverse industries in the country, with roots stretching back centuries. It spans from traditional hand-spun and handwoven clusters to sophisticated capital-intensive mills, supported by a robust base of fibres and yarns ranging from cotton, jute, silk, and wool to polyester, viscose, and acrylic. The decentralised power loom, hosiery, and knitting segment remains the largest component, reflecting the industry’s ability to cater to multiple consumer markets. Its close linkage with agriculture, reliance on natural resources like cotton, and strong cultural heritage give the Indian textiles industry a unique identity compared to other manufacturing sectors. Over the years, India has built the capacity to serve a wide spectrum of demand, from affordable mass-market apparel to niche high-value categories, both domestically and internationally. The industry today employs more than 45 million people, underlining its role as one of the country’s largest generators of livelihoods. Forecasts suggest the domestic textile and apparel market could reach $225 billion by 2025, growing at 10-12% annually, with exports expected to rise sharply in parallel.
The market for Indian textiles and apparel is projected to grow at a 10% CAGR to reach $2.3 billion by 2030. India ranks among the top five global exporters in several textile categories, with exports expected to reach $100 billion. The textiles and apparel industry now contributes approximately 2% of India’s GDP and about 11% of manufacturing GVA (Gross Value Added) as of August 2025. The textile industry in India is predicted to double its contribution to the GDP to approximately 5% by the end of this decade. Global fibre demand is expected to reach around 149 million tonnes in 2030, with increasing population and growth in per capita consumption. The Indian Technical Textiles market is the fifth largest in the world. The technical textiles industry was valued at $29 billion in 2024 and is projected to grow to $45 billion by 2026, $123 billion by 2035, and $309 billion by 2047. The India mobiltech textile market (a division of technical textiles for automotive use) is projected to grow from $2.32 billion in FY25 to $4.57 billion by FY33, at a CAGR of 8.84%. This growth is driven by rising demand for advanced materials, electric vehicles, and sustainability focus. India's sports technology market was valued at $185.3 million in 2023 and is projected to reach $830.3 million by 2030, growing at a CAGR of 23.9% from 2024 to 2030.
The future of India’s textiles industry looks promising, supported by rising domestic demand, growing exports, and policy interventions that are strengthening competitiveness. The sector, which already contributes around 2% to GDP and employs over 45 million people, is expected to see its share in the economy nearly double by the end of the decade. Technical textiles will play a pivotal role in this growth. The segment, valued at $29 billion in FY24, is projected to expand rapidly, reaching $45 billion by 2026 and continuing on a strong trajectory thereafter. Within this, mobiltech textiles for automotive use are expected to nearly double from $2.32 billion in FY25 to $4.57 billion by FY33, driven by the rise of electric vehicles and demand for advanced materials. Sustainability and innovation are emerging as defining themes for the industry. Companies are increasingly adopting ecofriendly processes and recyclable fibres to align with global trends, while government schemes like MITRA Parks and support for integrated textile hubs are encouraging value addition and modernisation. With household incomes rising, urbanisation expanding, and demand from sectors like housing, healthcare, and hospitality growing steadily, India’s textile and apparel market is projected to reach $350 billion by 2030. This positions India not only to strengthen its domestic market but also to expand its global footprint in textiles and apparel.
Pros and strengths
Diversified product portfolio: The company offers a wide range of fabrics and garments to cater to different markets. A diversified product range enables it to cater to diverse customer needs and market trends. Its offering a wide range of fabrics and garments help it to reduce dependence on a single product or market. Diversification allows it to target various industries, such as fashion, upholstery, or technical textiles. A broad product range also facilitates innovation, as it can experiment with new fibers, textures, and designs. By catering to different markets, it can increase revenue streams and improve its competitive position. A diversified product range is key to long-term sustainability and success in the textile industry.
Focus on quality and customer service: For the company, quality is of utmost importance. Delivering high-quality products is not only a measure of its success, but also a reflection of its commitment to excellence. With a team of skilled professionals, the company has built a reputation for delivering products that are worth their value and meet the highest standards of quality. The company ensures that every product it manufactures passes strict quality checks before it reaches its clients. It never compromises on quality, and always strive to deliver products that exceed its clients' expectations.
Existing customer relationship: The company tries to address customer needs around a variety of products. Its existing relationship help it to get repeat business from its customers. This has helped it to maintain a long term working relationship with its customers and improve its customer retention strategy. It has existing customer relationships with wholesaler which gets it repeat orders. Its existing relationship with its customers represents a competitive advantage in gaining new customers and increasing its business.
Risks and concerns
High geographic concentration risk: The company generates majority of its revenue from the state of Gujarat and Maharashtra. Consequently, any significant social, political or economic disruption, or natural calamities or civil disruptions in the state of Gujarat and Maharashtra or any changes in the policies of the state or local governments of this state or in the Government of India could require it to incur significant capital expenditure and change its entire business strategy in parts or in entirety. The occurrence of its inability to effectively respond to any such event or adapt to the changes in such policies could have an adverse effect on its business, results of operations, financial condition and cash flows.
Significant revenue concentration among top clients: The company’s top ten customers contribute 81.00%, 67.20%, 78.54% and 77.08 % of its total sales for the period year ended June 30, 2025 and for the financial year ended on March 31, 2025, 2024 and 2023, respectively. Its reliance on a limited number of customers for its business exposes it to risks, that may include, but are not limited to, reductions, delays or cancellation of orders from its significant customers, a failure to negotiate favourable terms with its key customers or the loss of these customers, all of which would have a material adverse effect on the business, financial condition, results of operations, cash flows and future prospects of the company.
Supplier base concentration and procurement vulnerability: The company’s top ten suppliers contribute 64.04%, 60.30%, 69.69% and 62.02% of its total sales for the period year ended June 30, 2025 and for the financial year ended on March 31, 2025, 2024 and 2023, respectively. The company cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations.
Outlook
K K Silk Mills is a manufacturer of fabrics as well as garments. The company's product range includes kids' wear, men's wear, and women's wear. The company manufactures fabric for various products, including men's shirts, formal and casual wear, shervani material, ladies' dress material, burkha material, and kushan cover material. The company has diversified customer base and long-standing relationship with the customers. It has wide range of fabrics and garments to cater to different markets. On the concern side, the company is dependent on few numbers of customers for sales and loss of any of this large customer may affect its revenues and profitability. Moreover, the company’s revenue is concentrated in the state of Gujarat and Maharashtra and any adverse developments affecting Gujarat and Maharashtra could have an adverse effect on its business, results of operations and financial condition.
The company is coming out with a maiden IPO of 75,00,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 36-38 per equity share. The aggregate size of the offer is around Rs 27.00 crore to Rs 28.50 crore based on lower and upper price band respectively. On performance front, the company has reported 15.87% rise in revenue from operations to Rs 22,077.99 lakh in FY25 as compared to Rs 19,054.12 lakh in FY24. Moreover, the company’s net profit surged 118.34% to Rs 659.51 lakh in FY25 as compared to Rs 302.05 lakh in FY24.
Going forward, the company will continue to focus on further increasing its operating practices and improving operational effectiveness in its projects. Higher operational effectiveness achieved by adopting various new ways to project management and tracking and without compromising on employee happiness, results in greater performance and higher sales which allows it to reduce its fixed cost and thereby, increasing its profit margins. The company wishes to constantly pass such benefit to its shareholders and increase its efficiency further. The company also wishes to target economies of scale to gain increased negotiating power on procurement. Further, the company intends to improve efficiencies to achieve cost reductions so that they can be competitive. This can be done through domestic presence and economies of scale. Increasing its penetration in existing regions with new range of products, will enable it to penetrate into new catchment areas within these regions and optimize its infrastructure. As a result of these measures, the company will be able to increase its market share and profitability.
