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Leading and promising yarn companies in India investors should consider investing in

leading and promising yarn companies in India

India saw significant rise in spun yarn exports. In July 2023, the country saw export of 127.6 million kgs, exhibiting a rise of ~108.4% increase in comparison to July 2022, and ~56.7% increase from June 2023. With 39.9 million kgs, China’s share came in at ~31.2% which was followed by Bangladesh at ~20.8% in the month of July 2023. Cumulative figures for April-July 2023 was 423.7 million kgs which was ~53.3% higher than FY22. Therefore, experts believe that leading and promising yarn companies in India might see a significant improvement in their business momentum in FY24. 

India’s exports for cotton yarn in July 2023 came in at ~104.8 million kgs. In comparison to July 2022’s 36.2 million kgs, the country saw a significant growth of ~189.4%. Such upward trend registers a ~55% rise in comparison to June 2023. China was categorised as a key player, taking ~37.94% share of India’s cotton yarn exports in July 2023. China was followed by Bangladesh at ~23.7%. Cumulative figures for April 2023 came in at ~337.7 million kgs, exhibiting a rise of ~89.5 % against FY22. 

Indian government has made numerous efforts to upgrade textile sector, push up exports, and encourage FDI throughout India. Such initiatives are expected to result in significant growth opportunities for leading and promising yarn companies in India. With budget outlay of ~INR4,445 crore for 7-year term ended 2027–2028, Indian government has approved establishment of 7 Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield and Brownfield locations. 

To promote manufacture of man-made Fibre (MMF) garments, MMF fabrics, and technological textile goods in India, Indian government sanctioned production linked incentive (PLI) scheme for textiles. Approved cost was ~INR 10,683 crore. 

With this in mind, let us now have a look at leading and promising yarn companies in India investors should consider investing in.

Top leading and promising yarn companies to Invest in India

1. Himachal Fibres Limited

Himachal Fibres Limited was incorporated on 20th February 1980 in Delhi and the company is being promoted by B.K. Garodia, who is a technocrat in financial collaboration with Himachal Pradesh Mineral & Ind. Development Corp. Ltd. It is engaged in the business of manufacturing cotton and synthetic blended yarn. It belongs to then Birlas (Yash) Group.

Total revenue from operation of the company for FY23 came in at INR2,683.29 lakhs in comparison to INR 2,728.97 lakhs of previous year. Net profit (loss) after tax for FY23 was INR 293.03 lakhs against INR (687.11) lakhs for the previous year. 

Accelerated reopening of activities resulted in significant opportunities for textile market which were subdued for some time. Apart from this, China plus one policy by USA and Europe should result in higher demand for Indian Market. Given an added advantage of high-quality standards and globally renowned accreditations, Himachal Fibres Limited is expected to be forging ahead with its sustainability vision to build potential so as to capture opportunities which are coming its way. Collectively, all these opportunities are expected to support revenue and profit growth. 

As per the regulatory filing, the company released insider trading report. In this report, India Equity Funds 1 acquired ~6.20% holding in the company consisting of ~53,50,000 equity shares of the company through open market purchase on BSE. As a result of this, the stock touched its upper circuit on 23rd October 2023. 

However, as per the data gathered, on October 20, 2023, the company’s promoters Balmukhi Textiles Private Limited and Shiva Spinfab Private Limited have in total sold ~31.14% stake in the company, resulting in the selling of ~2,68,61,000 equity shares through open market.

2. Deepak Spinners Ltd

Deepak Spinners Ltd, located in Chandigarh, has been categorised as a well-established name in the textile industry. Under the dynamic leadership of Mr. P.K.Daga, it is now a leading manufacturer of dyed synthetic yarn. Apart from addressing the domestic market, the company exports to countries including Syria, the Middle East, Turkey, Belgium, and US, etc. 

Revenue from operations of the company came in at INR56,136.35 lakhs in FY23, exhibiting a rise from INR53,153.72 lakhs in FY22. Its total income grew to INR56,364.09 lakhs in FY23 from INR53,477.13 in FY22. Profit for the year of the company was INR4,008.70 lakhs in comparison to INR3,928.51 lakhs. 

India’s man-made fiber (MMF) products are famous for workmanship, colors and durability. Globally, the country’s textile trade remains dominated by MMF. For India to improve its share in global textile trade, it needs to increase competitiveness in MMF value chain, regarding price and diversification in products. There is increased trend in USA and Europe as these countries shift their textile businesses from China to other Asian countries, with India remaining the clear choice. 

Deepak Spinners Ltd remains optimistic and continues to evaluate all the possible scenarios to maintain its profitability. Efforts to maintain costs under control continue to be the priority with increased emphasis on improved productivity and profitability.

Demand remains strong for millennial generation as they prefer to wear light weight fabrics having low cost and low maintenance. Increased demand for fitness apparel (active wear), need for low cost and high-performance material for the purposes of automotive and industrial use increased demand for synthetic and MMF products. Lower levels of cotton production, relatively increased cotton prices and different and dynamic applications of MMF are expected to act as contributors to higher demand for MMF textiles. Collectively, all these efforts are expected to support the company revenues and profits in FY24. 


Indian textile industry appears to be diverse as it encompasses a wide range of textiles, which includes man-made fibres (MMF). As of now, MMF textile industry in India remains significantly self-reliant throughout value chains from raw materials to garmenting. MMF makes up ~70% of world’s total fibre production. However, in India, MMF accounts for only ~42% of the production share. Therefore, significant opportunity is lies for leading and promising yarn companies in India.

To give a boost to textile industry, Indian Government has increased its budget outlay from INR 3,579 crore in FY23 to INR 4,389.34 crore for FY24. All the leading and promising yarn companies in India continue to target margin improvement through digitalisation and R&D. 

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