Aritas Vinyl Limited is engaged in manufacturing technical textiles, primarily PU synthetic leather and PVC-coated leather, using advanced Transfer Coating Technology. The company earns revenue through domestic sales and exports of synthetic leather used across automotive, footwear, furnishings, fashion accessories, healthcare, and upholstery industries. Its products replace natural leather due to durability, cost efficiency, customization, and eco-friendly advantages.

Key Clients & Manufacturing Facilities

The company supplies products to distributors, wholesalers, and manufacturers in India and exports to Greece, UAE, Oman, Sri Lanka, USA, and SEZs. Aritas Vinyl operates a manufacturing facility at Daskroi, Ahmedabad, spread over approximately 6,067 sq. meters, equipped with an in-house testing laboratory. The facility enables strict quality control and customized production for varied client specifications.

Product Portfolio & Order Book Execution

Aritas Vinyl’s product portfolio includes PVC-coated leather and PU synthetic leather with thickness ranging from 0.35 mm to 6 mm, customized by color, embossing, and texture. These products support client product life cycles in automotive interiors, footwear, upholstery, and fashion goods. The company executes orders efficiently using a 78 lakh meters per annum installed capacity, ensuring timely delivery and scalability.

Mergers, Capex & Expansion Plans

The company has not undertaken mergers but focuses on capacity expansion and operational strengthening. It has increased installed capacity from 42 lakh meters to 78 lakh meters per annum, supporting future growth. IPO proceeds are proposed to be utilized for working capital needs, strengthening manufacturing capabilities, and improving operational efficiency to cater to rising domestic and export demand.

Employees & Banker to the Company

As on December 26, 2025, the company had 89 employees. The Banker to the Company is Standard Chartered Bank.

MANAGEMENT & GROWTH VISION

The management team is led by promoters with over 30 years of combined experience in vinyl, technical textiles, manufacturing, and sales. Their vision focuses on scaling capacity utilization, expanding export markets, and strengthening client relationships. Near-term goals include operational efficiency and working capital optimization, while long-term plans target sustainable growth through internal accruals, IPO proceeds, and prudent debt for capex expansion.

INDUSTRY OVERVIEW

Aritas Vinyl operates in the technical textiles and synthetic leather industry, a fast-growing segment driven by demand from automotive, footwear, furniture, and fashion sectors. Synthetic leather is replacing natural leather due to cost, durability, and environmental concerns. The Indian technical textile market is growing at 8–10% CAGR, while global synthetic leather demand continues expanding steadily, led by Asia-Pacific manufacturing hubs. Market leaders operate at scale, but demand remains fragmented, offering growth opportunities.

KEY RISK FACTORS

1. Customer Concentration Risk
   A significant portion of revenue comes from the top 10 customers. Loss of any major customer may adversely impact revenue, cash flows, and profitability.
2. Raw Material Price Volatility
   The company depends on third-party suppliers for chemicals, resins, and textiles. Fluctuations in raw material prices can impact margins if cost increases cannot be passed on.
3. Leased Manufacturing Facility Risk
   The manufacturing facility is on lease. Non-renewal or termination of the lease may disrupt production and lead to relocation costs.
4. Logistics & Transportation Risk
   The company relies on third-party logistics providers. Disruptions, delays, or cost increases may affect timely deliveries and operating margins.
5. Debt & Financial Covenants Risk
   As of August 31, 2025, secured borrowings stood at ₹3,089.86 lakh. Restrictive covenants may limit financial flexibility.
6. Competition Risk
   The synthetic leather industry is competitive with domestic and global players. Intense competition may impact pricing power and market share.

KEY STRENGTHS, MOAT & OPPORTUNITIES

1. Advanced Manufacturing Technology
   Use of Transfer Coating Technology ensures consistent quality, durability, and customization, providing a competitive edge in technical textiles.
2. Wide Product Applications
   Products cater to multiple industries including automotive, footwear, furniture, fashion, and healthcare, reducing dependence on a single sector.
3. Strong Capacity Base
   Installed capacity of 78 lakh meters per annum supports scalability and execution of large orders efficiently.
4. Export Market Presence
   Exports to multiple countries diversify revenue streams and reduce domestic market dependence.
5. Experienced Promoter Group
   Promoters with decades of industry experience drive strategic decision-making, operational discipline, and customer relationships.
6. Growing Synthetic Leather Demand
   Shift from natural to synthetic leather due to cost and sustainability creates long-term growth opportunities for the company.