Yajur Fibres
- Yajur Fibres is coming out with an initial public offering (IPO) of 69,20,000 shares in a price band of Rs 168-174 per equity share.
- The issue will open on January 07, 2026 and will close on January 09, 2026.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 16.80 of its face value on the lower side and 17.40 times on the higher side.
- Book running lead manager to the issue is Horizon Management.
- Compliance Officer for the issue is Sulekha Dutta.
Profile of the company
Yajur Fibres operates a bast fibre cottonising unit in India. Situated in Howrah, the company is a part of the well-recognised conglomerate, The Kankaria Group. The company specializes in producing premium cottonised bast fibres, including flax (linen), jute, and hemp. It cottonises long & brittle bast fibres into cotton like short staple fibre such that the cottonised fibres can easily blend upto 55% with cotton and man-made fibres in the existing cotton spinning system or similar. Cottonising jute fibres until few years ago was considered a farfetched idea but with robust R&D and diligent commercial production of the same by Yajur has changed the landscape of sustainable bast Fibres altogether. While there are thousands of cotton & polyester spinning mills globally there are less than 400 spinning mills between linen, jute and hemp. Its cottonised Fibres can spin from 10% to 85% in cotton spinning systems and easily blends with natural and manmade fibres.
The company has capacity of over 300 MT per month of Cottonised Fiber, Flax Yarn and Jute yarn. The company is known for its extensive experience and innovation in bast fibres, which has made it the preferred choice for many top spinning & weaving mills in India, Turkey, Indonesia, Nepal and Bangladesh. Its products are being processed and manufactured in accordance with best practices available globally. Its system and product are tested constantly at each level to ensure international standards of quality in-house. The company places a strong emphasis on research and development (R&D) to continuously test and improve its products. It is dedicated to achieving excellence and best in class practices.
The company’s cottonised flax fibres are known for their softness, cleanliness, and consistency. The fibres high fibre length uniformity given that natural bast fibres can be as long as 10 ft. and negligible trash, providing high yield when blended with other natural or manmade fibres. The company also offers cottonised jute and hemp fibres, which have gained popularity for their sustainability and versatility. It is one of the first few companies to commercially introduce cottonised jute fibres spinning at over 90,000 rotor speed and the has pioneered in introducing commercially cottonised jute fibre that can blend upto 55% with cotton or any other natural & manmade fibres in the cotton spinning system or equivalent.
Proceed is being used for:
- Setting up of 50,000 sq.ft. of shed in the existing manufacturing unit and installation of additional production capacity of upto 4 tons per day at its existing manufacturing unit at Jagannathpur, Phuleshwar, Uluberia, District Howrah
- Investment in its subsidiary Yashodha Linen Yarn for setting up a greenfield unit at Vikram Udyogpuri, DMIC (Industrial Park, Ujjain, Madhya Pradesh) for 100% wet spun linen yarn and blended yarn
- Funding of working capital requirements of the company
- General corporate purposes
Industry Overview
The bast fibres industry in India plays a pivotal role in the textile and agricultural sectors. Bast fibres, derived from the inner bark of plants, are known for their strength, durability, and versatility. The most common bast fibres in India are jute and hemp, with jute being the most significant. These fibres are used in textiles, packaging, and eco-friendly products. Other examples of bast fibres include flax, used for linen fabric, ramie, which is known for its strength and durability, and kenaf, often used in making paper and bio-composites. Bast fibres are increasingly sought after for their sustainability; they are biodegradable, renewable, and made mostly of cellulose, which makes them an attractive alternative to synthetic materials. The cultivation and extraction of these fibres depend on agricultural practices, ensuring high-quality fibres for modern applications.
Bast fibres play a significant role in the Indian economy, contributing to both the agricultural and industrial sectors. The key bast fibres in India include jute, hemp, flax, and kenaf, with jute being the most prominent. It has a long history in the country, and its cultivation and processing are deeply embedded in India's agricultural and industrial sectors. The jute, flax and hemp industry supports over 4 million farmers and provides employment of 10.0 million man days in the rural sector of India, providing direct and indirect employment, particularly in the eastern regions like West Bengal, Bihar, and Assam. These areas are traditionally known for jute cultivation and processing. Meanwhile, India is one of the largest exporters of bast fibre products in the world. India’s overall exports of bast fibre products (including all types of bast fibres) are expected to be worth approximately Rs 8,000 crore - Rs 9,000 crore (around $1.1-$1.2 billion) annually, based on the prominence of jute in the industry and the rising demand for other bast fibres like hemp and flax.
The future of the bast fibre industry in India is positive, with projections for growth in hemp and flax cultivation due to their increasing use in sustainable products. The market for bast fibre-based composites and textiles is likely to grow as industries adopt more sustainable and biodegradable materials. By 2030, the global market for bast fibres (across textiles, composites, and biodegradable plastics) is expected to reach $12-$15 billion, and India, with its strong agricultural base and expanding industrial capacity, stands to capture a large portion of this growth. The Bast Fibre industry is experiencing some exciting innovations, especially in areas such as processing techniques and new product development.
Pros and strengths
One of the prominent manufacturers of premium cottonised bast fibre: The company is well known through its brand named -- ‘Yajur’ -- in the premium cottonised bast fibres, including flax (linen), jute, and hemp. Its brand and the company’s experience has helped it to earn the trust and goodwill of its customers. It currently manufactures premium cottonised bast fibres, including flax (linen), jute, and hemp for Indian and overseas market. The company’s cottonised flax fibres are known for their softness, cleanliness, and consistency. The fibres have high fibre length uniformity given that bast fibres can be as long as 10 ft. and negligible trash, provide high yield when blended with other natural or manmade fibres. It is well established and recognizable brand, and the reputation built by it has and will enable it to increase its customers list in the future. With a rich history spanning over two decades in jute fibre and yarn industry, the company has emerged as a prominent force.
Quality assurance and quality control of its products: At the core of the company’s operations is an unwavering commitment to quality assurance and control. Its domestic and international customers demand rigorous quality checks at various stages before dispatch, and it has established dedicated quality assurance and control teams to meet these demands. It employs experienced quality control professional in its manufacturing and quality control process to ensure its product undergo meticulous inspections to prevent rejections and maintain highest quality standard as specified by its customers. The company’s quality control measures extend from thorough checks of raw materials to the final inspection of finished goods. An in-house laboratory equipped with automatic/mechanical machines, operated by skilled personnel, supplements these efforts. The company is contributing its 100% output to the sustainability drives and desires of conscious companies and consumers alike. The whole company is dedicated to 100% sustainable, natural & biodegradable fibres.
Cost effective production and timely fulfilment of orders: Timely fulfilment of the orders is a prerequisite in the industry. The company has taken various steps in order to ensure adherence to timely fulfilment of orders and to achieve greater cost efficiency at its existing manufacturing unit. These steps include sourcing of quality raw materials, quality control, smooth labour relations, use of an efficient production system and strong relationship with raw material suppliers. These steps enable it to meet large and varied orders.
Risks and concerns
Loss of key customers could adversely affect performance: The company is dependent on a few customers of its products, for a significant portion of its revenue. The company has garnered 76.43%, 61.58% and 70.79% of its revenue from top 10 customers in FY25, FY24 and FY23 respectively. The loss of one or more of these significant or key customers or a reduction in the amount of business it obtains from them could have an adverse effect on its business, results of operations, financial condition and cash flows.
Reliance on third-party suppliers for core inputs: The company is engaged in the manufacturing of premium cottonised bast fibres, including flax (linen), jute, and hemp and therefore it is highly dependent on jute fibre, jute sliver and flax fibre, which are the main raw materials required for manufacturing its products. The company is dependent on third party suppliers for procuring the aforementioned raw materials used in the manufacture of its products. The company has procured 85.61%, 81.61% and 82.26% of its raw material supply from top 5 suppliers in FY25, FY24 and FY23 respectively. The company has not entered into formal arrangements or contracts with third-party suppliers from whom it procures its raw materials. In the event the company is unable to procure adequate amounts of raw materials, at competitive prices its business, results of operations and financial condition may be adversely affected.
Seasonal fluctuations in flax supply affect capacity utilisation: The company is engaged in the business of manufacturing premium cottonised bast fibres, including flax (linen), jute, and hemp. Jute fibre, jute sliver and flax fibre are the main raw material of the company. Flax is typically harvested once a year, usually between August and September in Europe, depending on the region and climatic conditions. This seasonal harvest cycle can lead to fluctuations in raw material availability, impacting production schedules and inventory levels. While, there have been instances in the past, wherein its operations were affected by seasonal fluctuations resulting in non-availability of Flax, it cannot assure that such instance shall not occur in the future. For instance, the company has faced shortage of raw material due of poor crop in FY2024 which caused significant dip in the capacity utilisation in FY2024. The same has been improved during FY2025. Its business depends on the availability of European flax and any shortage of the same may adversely affect its business and results of operations.
Outlook
Yajur Fibres is engaged in processing and manufacturing bast fibers such as flax, jute, and hemp. The company cottonizes long, brittle bast fibers into short, cotton-like fibers that blend easily with cotton and man-made fibers, revolutionizing sustainable bast fibers with extensive R&D and commercial production. The company is one of the prominent manufacturers of premium cottonised bast fibre. It has strong, cordial & long-term relationship with the customers. On the concern side, the company derives a substantial portion of its revenue from the sale of Cottonised Flax and loss of sales due to reduction in demand for such products would have a material adverse effect on its business, financial condition, results of operations and cash flows. Moreover, the company is dependent on a few customers of its products, for a significant portion of its revenue, and any decrease in revenues or sales from any one of its key customers may adversely affect its business and results of operations.
The company is coming out with a maiden IPO of 69,20,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 168-174 per equity share. The aggregate size of the offer is around Rs 116.26 crore to Rs 120.41 crore based on lower and upper price band respectively. On performance front, the company’s total revenue has increased 66.99% from Rs 8,484.58 lakh in the fiscal year ended March 31, 2024 to Rs 14,080.76 lakh during the year ended March 31, 2025. Moreover, net profit has increased 173.57% from Rs 426.79 lakh in the fiscal year ended March 31, 2024 to Rs 1,167.56 lakh during the year ended March 31, 2025.
The company has over the years diversified its product portfolio and increased its production capacities through consistent growth and innovation. The company proposes to further diversify its product portfolio by forward integration by setting up a greenfield unit for manufacturing 100% wet spun linen yarn and blended yarn in its subsidiary company. 100% wet spun linen yarn is produced from 100% flax long fibres and blended yarn is produced from cottonised fibres. It intends to create an additional revenue stream using forward integration of its material, i.e., blended yarn from cottonised fibres and selling the same for industrial usage. Its strong presence in the Indian and international market positions it well to capitalize on the anticipated growth of linen yarn industry. The strategic decision to expand its product portfolio will enable it to create additional revenue streams, diversify its business operations and reduce its dependence on a single product.
