India’s textile industry, a cornerstone of the nation’s economy, is witnessing a significant upswing, driven by global shifts in supply chains. Instability in major textile hubs like Bangladesh and China has prompted international buyers to diversify sourcing, positioning India as a preferred alternative.
With its vast raw material base, skilled labor, and supportive government initiatives like PLI schemes and free trade agreements, India is emerging as a reliable player in global markets. As demand for sustainable and ethically produced textiles rises, India’s ability to adapt and innovate further solidifies its role as a leader in the worldwide textile industry.
Share Price
The Shares of the company are trading at Rs.181 up 9% from its previous close of Rs. 166.16 as of 11:20 a.m. on Tuesday, November 19, 2024.
CAPEX Updates
Expansion of Production Capacity
The company is planning to invest ₹30 crore to increase the processing capacity of its plant located in Gujarat. This expansion will boost processing capabilities by 50%, enabling the handling of a broader range of fabric qualities to meet evolving market demands.
Strategic Goals
This initiative aligns with the company’s strategy to strengthen operational efficiency, improve product quality, and ensure sustainable future growth. It underscores the company’s commitment to remaining competitive in a dynamic industry.
Implementation Timeline
According to the board, procurement will commence shortly, with installation and production expected to be operational by Q2 FY 2026.
Funding and Support
The project will be funded equally (50:50) through internal accruals and a term loan. Additionally, it may benefit from subsidies under the New Gujarat State Textile Policy.
About the Company
Incorporated in 1983, Orbit Exports Ltd. (OEL) is a diversified company engaged in textile manufacturing and windmill power generation. Originally starting as a weaving enterprise, OEL has evolved into a global player in the value-added fabric market, catering to diverse industries and customer needs.
The company specializes in manufacturing and exporting fancy fabrics, with a strong focus on occasion-specific textiles and finished products. Its offerings include high-fashion garments, home furnishings, bridal wear, and festive fabrics. With expertise in creating custom-designed fabrics, OEL serves a wide array of markets such as women’s apparel, Christmas crafts, and home decor.
Production at OEL is carried out in batches, tailored to customer specifications, ensuring high-quality output. A portion of its sales is strategically routed through group companies to optimize operations and market reach.
Conclusion
Orbit Exports Ltd.’s new ₹30 crore CAPEX plan demonstrates strong growth potential in India’s evolving textile landscape. The company will expand its Gujarat plant’s processing capacity by 50%, positioning itself to capture increased global demand.
The strategic timing aligns with international buyers seeking alternatives to traditional manufacturing hubs. With a balanced funding approach and potential policy benefits, OEL strengthens its market position. This expansion marks a significant step in OEL’s journey to enhance operational capabilities and drive sustainable growth.
Written By: Dipangshu Kundu
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