Mr. Madhu Sudhan Bhageria , Chairman & MD Filatex India Limited
Q/A
1. Kindly share the new expansion plans for Filatex India Limited, keeping in with the growing consumer demand and global trend.
Man-Made Fibres (MMF), especially polyester yarn, continue to dominate global textile demand, accounting for over 60% of fibre consumption. Performance fabrics, Athleisure, and fast fashion are boosting polyester usage worldwide. Sustainability is driving strong growth in recycled polyester (rPET). With China’s slowdown and India’s capacity expansion, global prospects for polyester yarn remain highly favourable.
The company is undertaking multiple strategic investments aimed at enhancing capacity, sustainability, and cost efficiency. We are increasing our yarn capacity (POY-19,800 MT/A, FDY-28,800 MT/A & DTY-14,400 MT/A) and the completion target is around September 2026.
We have invested in creating more storage space with state-of-the-art ASRS; Automated Storage and Retrieval System. We are also automating our material handling and packing system which will increase our efficiency in production operation.
2. Market is curious to know the developments being made at Filatex India’s Dahej plant, please share the insight.
We currently operate a 30 MW captive power plant for stable power supply. As we move towards greater share of clean energy, the captive generation will be reduced. We plan to optimize our boiler and turbine infrastructure by generating only15 MW of electricity and extracting steam from the turbine for external sale to surrounding small industries. This model offers extremely low-cost power generation while enabling nearby companies to procure steam at a cost lower than self-generation, creating a win–win solution.
3. Ecosis has emerged as a gamechanger and aligns with the vision of the Hon’ble Prime Minister in managing textile waste management effectively. What was the vision behind this and how does Filatex aim to pursue it further?
We firmly believe this is the time for textile transformation, and with this vision, our in-house research has led to the development and patenting of a molecular regeneration process for polyester textiles recycling, a true circular economy model. We recognize that sustainability is not just a compliance requirement but the foundation for future growth—a survival mantra for people, businesses, and the planet. To address environmental challenges such as climate change, biodiversity loss, and waste, we have already commissioned a pilot plant that successfully processes various pre-consumer textile wastes like garments and home linen. Building on this progress, we have commenced execution of a 26,250 TPA textiles-to-textiles (T2T) recycling plant near our existing facility. We expect this facility to commence production by July 2026, positioning us at the forefront of sustainable textile innovation.
4. Filatex has signed a LoI with Torrent Powers and is leading the textile industry in setting sustainability benchmarks. Kindly give us an insight into the latest development in this sector:
At the operational level, our capacity utilization remains strong at around 95%, and we are consistently focused on reducing both energy consumption and costs. Since energy is our second-largest expense after raw materials, we have tied up with Torrent Power for a supply of 20 MW renewable energy operational by February 2026.
Thus around 55% of our energy requirement will be met from renewable sources which will not only reduce carbon footprint but result in substantial savings in operating costs.
5. Any new products in the pipeline for the domestic market?
We have added Cationic Yarns to our product basket. We are exploring value-added polyester yarns like dope-dyed recycled rPET, high-tenacity, and microfilament yarns for the domestic market.
6. How would the newly forged FTA with the UK and CEPA with Australia help India’s textile Industry to gain stronghold in the global markets?
The recently signed Free trade agreements with the United Kingdom and CEPA with Australia are likely to mark a significant boost for India’s textile exports. These FTAs reduce import duties on key textile products, improving India’s price competitiveness, especially against countries like China and Vietnam. US trade policy is becoming increasingly unpredictable, with tariff threats emerging from both policy concerns and political considerations. These FTAs would also help in diversifying export markets and function as a cushion against volume losses in exports to US on account of steep tariffs imposed.
For the polyester and MMF segment, these agreements offer strong export opportunities in value-added products like POY, FDY, DTY, and blended fabrics. With stable raw material availability and government support, Indian manufacturers are likely to be better placed to tap these markets.
7. Union Government has curated generous schemes like PLI and PM MITRA for the Textile sector. Do you think they are good enough to safeguard the sector in a Trump Tariff world? What is more expected from the policy point of view?
Schemes like the Production Linked Incentive (PLI) and PM MITRA introduced by the Indian Government will strengthen the competitiveness of the textile sector. By incentivising investment in MMF and technical textiles and creating integrated textile parks with modern infrastructure, these schemes address key structural gaps—especially in scale, cost efficiency, and quality.
However, while these domestic initiatives improve the industry’s supply-side readiness, they cannot shield Indian textiles from external shocks, such as unilateral tariffs or trade restrictions from key markets like the US. These risks are often driven by political or strategic considerations which are beyond the scope of industrial policy. Therefore, India must complement these incentive schemes with diplomatic engagement, trade diversification, and continued support to investment in sustainability, traceability, and compliance, to stay globally competitive even in a fragmented trade environment.
8. Message to the industry through the columns of Hosiery Report
India’s polyester yarn manufacturers operate inside a maze of split mandates: crude-to-chemicals feedstocks like PX/PTA/MEG sit with Petroleum & Natural Gas and DPIIT; fibre, yarn and export schemes with the Textiles Ministry; standards with BIS; trade policy with DGFT/Commerce; indirect taxes with CBIC/GST Council; environment with MoEFCC plus state PCBs; and labour, power, and logistics fragmented across states. The result is serial (not parallel) approvals, asynchronous QCO roll-outs across the MMF chain, state-by-state variability in power/open-access rules and wastewater norms, and overlapping filings (consents, EPR, ESG). Add in periodic anti-dumping/countervailing duty reviews on PTA/PSF/filament, shifting RoDTEP/drawback rates, and occasional import-policy flip-flops, and capex clocks stretch while compliance headcount and legal costs rise. Working capital is further strained by GST accumulation/refund lags on exports.
PM MITRA parks and PLI for MMF/apparel help on clustering and compliance, but without one chain-owner ministry or an empowered inter-ministerial board, coordination gaps persist: different timelines for standards and environment clearances, unclear recyclate specifications for circular polyester, and uneven state incentives dilute scale advantages. What manufacturers need (and increasingly lobby for) is a single-window for the whole polyester value chain; a published 3–5-years roadmap synchronising QCOs, trade remedies, and GST rate architecture to avoid inversions and predictable rules on open-access power &cross-subsidy surcharges. Until these pieces click, India’s polyester spinners will continue to face planning uncertainty, higher compliance cost per tonne, and thinner risk-adjusted margins versus regional peers.
The recent GST reforms introduce by the Union Government must also reconsider the 18% slab on PTA/MEG as it will increase inversion since the GST slab on Fiber, Filament and Yarn is reduced from 12% to 5%.
Whilst Plant Fiber, Animal Fibers & Manmade Cellulose Fiber have seen stagnant consumption growth since the past 5 years, Synthetic Fibers especially Polyester Yarns have witnessed a signifiant jump in their global consumption.
Man-made fibres (MMF) are set to be the growth engine of India’s textile sector, driven by rising global demand for sustainable, versatile, and performance-based fabrics. Currently, MMF accounts for nearly 70% of world fibre consumption, while in India its share is only about 45% of its consumption, highlighting significant headroom for expansion. Policy support through PLI and PM MITRA schemes, coupled with duty-free access under Australia CEPA and upcoming UK FTA, will further strengthen MMF manufacturers’ global competitiveness.
