Alpine Texworld IPO

Alpine Texworld Limited IPO Strengths

Integrated Manufacturing and Backward Integration

Alpine Texworld Limited operates two adjacent manufacturing units in Ahmedabad, Gujarat, which strategically include both a weaving unit (Unit 1) and a spinning unit (Unit 2). The establishment of the spinning unit as a backward integration enables the Company to manage the yarn production process in-house, ensuring a stable supply of raw material for its existing weaving operations and contributing to enhanced logistical efficiency and reduced procurement costs.

High-End Automated Machinery and Production Capacity

The Company utilizes automated machinery from globally recognized brands, including Toyota, Karl Mayer, Itema, and Picanol, enhancing efficiency and precision in production. Its extensive installed capacity includes 112 high-speed air jet looms for 180 Lakh meters of Grey Fabric annually, a high-speed sizing machine, and a spinning facility capable of 6,000 tonnes of cotton and blended yarn annually.

Strategic Acquisition and Expanded Weaving Capacity

Alpine Texworld Limited expanded its capabilities through the strategic acquisition of a 97% stake in Alpine Cottweave LLP, now a subsidiary. This move significantly increased the group’s aggregate weaving capacity to 276 Lakh meters per annum, incorporating an additional 72 Picanol airjet looms. This expansion supports the Company’s growth strategy and market positioning.

Experienced Promoters and Industry Expertise

The Company’s growth and operational success are significantly attributed to its experienced Promoters. The Promoters possess extensive, long-standing expertise in the textile industry—over 25 years for two Promoters and over 14 years for the third. Their deep industry knowledge strengthens stakeholder relationships and strategically positions the Company to navigate the textile market and drive sustained growth.

Commitment to Renewable Energy and Cost Efficiency

Alpine Texworld Limited demonstrates a commitment to environmental sustainability and cost optimization by operating its own solar power generation units. The Company has implemented an 820 KW rooftop solar project and a 5.4 MW ground-mounted solar project. The electricity generated offsets the Company’s power consumption, reducing dependency on grid power and promoting significant cost efficiency.

Demonstrated Track Record of Healthy Financial Performance

The Company has a strong track record of healthy financial performance, which is a testament to its focus on operational and functional excellence. Over the last three fiscal years, Alpine Texworld Limited has consistently grown its total revenue from operations, and notably, it has shown a strong upward trend in both its EBITDA and Profit After Tax.

More About Alpine Texworld Limited

Incorporated in February 2016, Alpine Texworld Limited commenced production in April 2017 with its weaving unit, including a sizing plant at Paldi, Ahmedabad, Gujarat (“Manufacturing Unit 1”). Initially, the company installed 48 high-speed Toyota Shuttleless airjet looms, later expanding by 64 additional looms in August 2018 to enhance operational efficiency and capacity.

In March 2025, the company further expanded by establishing a spinning unit (“Manufacturing Unit 2”) equipped with four open-end rotor spinning machines, located adjacent to Manufacturing Unit 1. This leasehold facility from Alpine Weaving Private Limited creates operational synergies, enabling integrated management across both units. Collectively, the manufacturing units include main sheds, effluent treatment plants, boiler foundations, office spaces, raw material storage, and auxiliary structures.

Operations and Capabilities

Alpine Texworld is now a vertically integrated textile manufacturer with capabilities in both weaving and spinning. Processed cotton is converted into yarns of varying thickness through open-end spinning, which are then woven into grey fabric. Key machinery includes:

• 112 high-speed Toyota Shuttleless airjet looms with 180 lakh metres annual weaving capacity.

• One multi-cylinder sizing machine with 6,650 metric tonnes annual yarn sizing capacity.

• Four open-end rotor spinning machines with 6,000 metric tonnes annual spinning capacity.

Renewable Energy Initiatives

The company has invested in renewable energy, installing an 820 KW rooftop solar plant at Manufacturing Unit 1 in January 2024 and a 5.4 MW ground-mounted solar project in Banaskantha in March 2025. These initiatives reduce dependency on grid power, improve cost efficiency, and support sustainable operations.

Subsidiary and Expansion

Alpine Texworld acquired a 97% stake in Alpine Cottweave LLP in October 2024, making it a subsidiary. Alpine Cottweave operates a weaving unit with 72 high-speed Picanol NV Airjet looms, producing approximately 96 lakh metres of grey fabric annually.

Products and Revenue

The company primarily produces grey fabric, yarn, and offers yarn sizing services. For fiscal years 2023–2025, revenue from operations ranged from ₹2,368.71 million to ₹2,373.24 million, supported by a strong presence in Gujarat, Punjab, Uttar Pradesh, and Telangana. Grey fabric remains a key indicator of upstream textile activity, with demand linked to garment production cycles and sustainable manufacturing practices.

Industry Outlook

The Indian textile industry continues to present a promising growth trajectory, driven by rising domestic demand and export potential. The textiles and apparel market is projected to grow at around a 10% CAGR and reach approximately US $350 billion by 2030.

Key Growth Drivers

• Growing urbanisation, rising disposable incomes, and changing lifestyle preferences are fuelling demand for fabrics, yarns, and finished textiles.

• Government initiatives such as the PM MITRA Textile Park Scheme and Production Linked Incentive (PLI) schemes aim to strengthen the entire value chain (spinning → weaving → processing) and enhance competitiveness.

• Focus on sustainability and green manufacturing (e.g., solar power, eco-textiles) is creating new opportunities, particularly for grey fabrics and yarns.

• Upstream segments such as grey fabrics and yarns are benefiting from integration and value addition.

Market Size & Projections

• The Indian textile market was estimated at US $146.6 billion in 2024, projected to reach US $213.5 billion by 2033, implying a CAGR of around 3.85%.

• The textile manufacturing market was valued at US $128.28 billion in 2024, forecasted to grow to US $190.57 billion by 2033, with a CAGR of approximately 4.15%.

• The textile fabric market was valued around US $40.35 billion in 2021, expected to reach about US $69.32 billion by 2029, growing at roughly 7% CAGR.

Outlook for Yarn & Grey Fabric

• The yarn segment, particularly cotton and blended yarns, is expected to grow at 3–4% CAGR between 2024 and 2028.

• Grey fabric, a key upstream product for weaving and finishing, remains closely tied to garment manufacturing and export orders, offering mid- to high-single-digit growth in the near term.

Industry Challenges

Raw material price volatility, global supply chain disruptions, and competition from low-cost manufacturing nations may temper growth. Companies with vertical integration and sustainable operations are better positioned to capitalise on the industry’s favourable outlook.

How Will Alpine Texworld Limited Benefit

• Increasing domestic and export demand for textiles and apparel will drive sales of grey fabric and yarn.

• Government initiatives like PM MITRA Textile Parks and PLI schemes can support capacity expansion and operational efficiency.

• Growth in sustainable and green textiles aligns with Alpine Texworld’s renewable energy investments, enhancing cost efficiency and market positioning.

• Vertical integration in spinning and weaving allows the company to capture higher margins and respond quickly to market demand.

• Expansion of domestic and international markets presents opportunities for increased revenue and client diversification.

• Rising urbanisation and lifestyle-driven fabric consumption will boost the company’s product volumes.

• Grey fabric demand, as an upstream textile indicator, offers steady growth linked to garment manufacturing cycles.

• Strategic presence in Gujarat ensures strong supply chain access and skilled workforce availability

Peer Group Comparison

Company	Revenue (₹ million)	Face Value (₹)	P/E Ratio	EPS (₹)	RoNW (%)	NAV (₹)
Alpine Texworld Limited	2,373.24	10.00	Not Applicable	3.27	16.78%	19.50
Peer Group
United Polyfab Gujarat Limited	6,022.18	10.00	52.01	7.71	18.18%	42.40
Ken Enterprises Limited	4,828.01	10.00	7.92	6.42	11.04%	45.43
Pashupati Cotspin Limited	6,374.91	10.00	85.85	8.31	8.35%	97.78

Key Strategies for Alpine Texworld Limited

Expanding Weaving Capacity

Alpine Texworld Limited proposes to increase its weaving capacity by installing 48 additional looms at a Proposed Manufacturing Unit 3. This significant expansion initiative is designed to enhance operational efficiency, achieve greater value chain integration, and align with the Company’s long-term growth objectives for improved competitiveness and market presence.

Strategic Acquisition of Land Parcels

The Company has strategically acquired four separate land parcels in Ahmedabad. These properties were purchased as part of the Company’s forward-looking strategy to scale operations. The acquisitions ensure operational flexibility, allowing the Company to be ready to establish new manufacturing units when market conditions and industry trends become favorable.

Investment in Renewable Energy Sources

Alpine Texworld Limited is proactively converting to alternative sources of energy by investing in Solar Unit 1 and Solar Unit 2. This strategic adoption of renewable energy aligns with the Company’s sustainability goals, reduces its dependency on conventional power, and is a key measure to effectively lower the costs associated with power consumption for the business.