Textile firm AB Cotspin plans ₹1.5k cr investment to expand mfg capacity

Integrated textile firm AB Cotspin India has announced plans to invest up to ₹ 1,500 crore to significantly expand its manufacturing capacity.

The investment will be funded through a combination of bank financing, internal accruals, and government incentives, ensuring a robust and balanced capital structure, the company said in a stock exchange filing. 

 

The expansion project will involve the addition of approximately 2,00,000 spindles to the company's existing capacity of 50,832 spindles, effectively doubling its production scale, the Bathinda-headquartered firm said.

The new capacity will be established across India, with key locations in Madhya Pradesh and Maharashtra, and is expected to become fully operational within the next three years.

"This strategic project covers a wide spectrum: acquiring land on lease; setting up state-of-the-art manufacturing plants for spinning, ginning, yarn manufacturing, and processing; developing modern warehousing and logistics infrastructure; and building facilities for the sustainable utilisation of by-products," it said. 

 

A key pillar of the project is reinforcing the company's commitment to green manufacturing through renewable energy adoptionincluding its existing solar energy investmentsand aggressive resource optimisation, AB Cotspin said.

"Doubling our spindle capacity is not just about scale; it's about enhancing our integrated, sustainable manufacturing ecosystem. This expansion will significantly strengthen our domestic and international market position, drive sales growth, and improve profitability," said Deepak Garg, Managing Director, AB Cotspin India. 

 

The firm said the planned capital expenditure is tailored to meet growing domestic and international demand for high-quality cotton yarn and eco-friendly textile solutions.

AB Cotspin, listed on NSE Emerge recently completed three years of listing and is now eligible for migration to the main board.

AB Cotspin posted a 17 per cent year-on-year increase in revenue in FY25 at ₹ 300.91 crore. Its net profit rose 52.27 per cent to ₹ 10.21 crore.

The company has over 25 yea₹ of expertise in spinning, ginning, yarn manufacturing, and processing.