BUSINESS OVERVIEW

Rachit Prints Limited (formerly Rachit Prints Private Limited), incorporated in 2003, is engaged in the manufacturing of knitted and printed fabrics for the mattress industry. The company has developed a sustainable and efficient offline distribution model, steadily expanding its presence across multiple Indian states including Assam, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal.

The business traces its origins to M/s Rachit Prints, a partnership firm founded by Mr. Anupam Kansal, who was actively involved in printing and manufacturing of fabrics. In 2003, the promoters incorporated Rachit Prints Private Limited and took over the partnership business, setting up an automated manufacturing facility to produce customized and specialized textiles.

The company specializes in manufacturing fabrics tailored for mattresses, including knitted fabric, printed fabric, warp knit, pillow fabric, binding tape, along with the trading of comforters and bedsheets. The production process begins with yarn procurement and covers in-house weaving, designing, printing, and finishing, resulting in high-quality knitted and printed fabrics designed to meet customized client specifications.

The primary raw materials used include cotton yarn, viscose, spun, filament, and dyed yarn, sourced mainly from Delhi and Haryana. Operations follow a B2B (business-to-business) model, supplying products to major mattress brands such as Sleepwell, Kurlon Enterprise Limited, and Prime Comfort Products Private Limited. The majority of work is executed on an order basis, with a structured process from order receipt, raw material assessment, production, quality approval, and final finishing.

The manufacturing facility is equipped with advanced Indian, German, and Chinese machinery, supported by modern handling equipment to ensure smooth production and efficient logistics.

The company’s promoters play an active role in strategic and day-to-day operations, leveraging extensive industry experience and established trade relations. A strong focus on continuous improvement, process optimization, and customer satisfaction has helped the business maintain long-term relationships and ensure repeat order flows, strengthening its brand position within the industry.

Financial Performance

• Fiscal 2025:

  • Revenue from operations increased by ₹462.06 lakhs (12.46%), reaching ₹4,170.32 lakhs, compared to ₹3,708.26 lakhs in Fiscal 2024, driven by rising demand in the domestic market.

  • Profit After Tax (PAT) increased by ₹253.19 lakhs, reaching ₹456.18 lakhs, compared to ₹202.99 lakhs in Fiscal 2024.

• Fiscal 2024:

  • Revenue from operations rose by ₹476.05 lakhs (14.73%), amounting to ₹3,708.26 lakhs, compared to ₹3,232.21 lakhs in Fiscal 2023, supported by healthy product demand and favorable market conditions.

  • Profit After Tax (PAT) surged by ₹170.69 lakhs (528.51%), reaching ₹202.99 lakhs, compared to ₹32.30 lakhs in Fiscal 2023.

Rachit Prints Limited continues to strengthen its position in the mattress fabric segment by focusing on specialized product offerings, consistent process improvements, and expanding customer relationships, aiming to establish itself as a distinguished and reliable name in the textile industry.

As on date, March 31, 2025, the company have 96 total employees. The Banker to the company is Federal Bank Limited.

INDUSTRY ANALYSIS

Textile Industry in India

India is one of the largest manufacturers and exporters of readymade garments, with a rapidly growing domestic market that has positioned it among the most lucrative apparel markets globally. The apparel manufacturing sector alone employs nearly 12.3 million people, making it one of the most significant contributors to employment in the country.

In recent years, however, the industry has faced headwinds. Domestic demand slowed as consumers reduced discretionary spending due to economic uncertainty, while exports suffered because of recessionary conditions in key markets like the US and EU. This has led to a 25–30% decline in order bookings for the festive season, largely due to inflation and fluctuating input costs of cotton, polyester yarn, and man-made fibers, which have pushed prices higher for consumers.

Despite these challenges, the long-term outlook remains positive. According to the Confederation of Indian Industry (CII), the Indian textile and apparel industry is expected to grow at a CAGR of 10% between 2019–20 and 2025–26, reaching USD 190 billion. The domestic apparel market alone, valued at USD 40 billion in 2020, is projected to touch USD 135 billion by 2025, highlighting immense growth potential.

Textile Production and Current Scenario

In FY 2023, India’s fabric production was estimated at 493 million running meters, while knitted cotton fabric production stood at 121 thousand tons. The textile and apparel industry contributes 2% to India’s GDP and 7% to industrial output, holding a 4% share in global trade and accounting for over 10% of India’s export basket in 2021–22.

Currently, the sector is navigating a downturn as consumer spending shifts toward food, electronics, and vehicles, causing reduced demand for garments. The spinning sector, in particular, is struggling with underutilization due to weak demand from weavers and knitters, as well as lower yarn imports from China.

To counter these challenges, the government has rolled out initiatives like the Production Linked Incentive (PLI) scheme and PM Mitra parks, aimed at boosting investment in man-made fibers and technical textiles. Yet, the industry continues to rely heavily on imports of man-made fibers, primarily from China, Vietnam, and Taiwan. Interestingly, the ongoing struggles in Bangladesh’s garment industry, including labor unrest and political instability, are creating opportunities for India to capture a greater share of global apparel sourcing, provided it ensures quality, competitiveness, and sustainability.

At the same time, rising freight costs, up nearly 40% due to disruptions in the Red Sea region, are inflating operational costs and pressuring margins.

Key Product Segments

The Indian textile sector is highly diverse, encompassing a wide variety of fibers and fabric categories:

• Cotton remains the backbone of the industry, known for its softness, comfort, and breathability. Blends such as cotton-polyester combine durability with affordability, making them a staple in global fashion and home textiles.

• Synthetic fibers like polyester, nylon, acrylic, and viscose dominate sportswear, outerwear, and functional garments thanks to their durability, elasticity, and moisture-wicking capabilities.

• Silk textiles hold a premium market position, with India being the world’s second-largest silk producer. Traditional silk sarees and high-end garments, particularly from Karnataka, Tamil Nadu, and West Bengal, are globally renowned.

• Handloom and traditional textiles, including Banarasi sarees, Kanjeevarams, and Pashmina shawls, represent India’s cultural richness while contributing significantly to exports and rural employment.

• Technical textiles are emerging as a high-growth category, serving industries like healthcare, agriculture, and construction, with strong government support making India a potential global leader.

• Home textiles, including bed linens, towels, curtains, and carpets, are a stronghold of Indian exports, especially to North America, Europe, and the Middle East, where India enjoys a reputation for high quality.

Home Textile Industry in India

The Indian home textile market was valued at USD 9.7 billion in 2023 and is expected to rise to USD 10.5 billion in 2024, registering a growth rate of nearly 9%. India accounts for about 7% of global home textile exports, with the US being the largest destination. Growth has been driven by rising disposable incomes, rapid urbanization, organized retail expansion, and strong demand from housing, hospitality, and healthcare sectors.

The sector, however, has not been immune to challenges. The COVID-19 pandemic disrupted supply chains, reduced demand, and led to cancellations of international orders, causing temporary stress. Nonetheless, the industry has shown resilience, focusing on quality improvement, design innovation, sustainability, and logistics optimization, which has enabled a steady recovery.

As India rebounds, pent-up demand and renewed consumer focus on comfort and wellness are fueling growth. The revival of the hospitality and tourism industries has also bolstered demand for premium home textiles such as luxury bed linens and upholstery. Delhi has emerged as a key production and export hub, further strengthening India’s global footprint.

Trade and Competitive Landscape

The home textile trade has seen fluctuations in recent years. Exports peaked at INR 467.6 billion in FY 2022 due to post-pandemic recovery but dipped in FY 2023 as global inflation and competition from Bangladesh and Vietnam intensified. Exports partially recovered in FY 2024 to INR 426.2 billion, while imports of specialized textile components continued to rise, reaching INR 23.8 billion, reflecting gaps in local manufacturing.

The market remains highly competitive, with leading players such as Welspun Group, Bombay Dyeing, and Alok Industries dominating through scale, branding, and product innovation. At the same time, smaller firms are carving out niche markets, especially in sustainable and eco-friendly textiles. The rise of e-commerce and organized retail has significantly expanded reach, making premium and branded home textiles more accessible to urban consumers.

Growth Outlook

Looking ahead, the Indian home textile industry is projected to grow to USD 17.5 billion by 2030, registering a CAGR of 9%. This growth is being fueled by the global “China+1” sourcing strategy, which is driving multinational retailers to diversify supply chains. With concerns over labor practices in China’s Xinjiang region and a steady decline in textile imports from China by the EU and US, India is emerging as a preferred alternative.

India’s abundant availability of quality cotton, lower production costs, and increasing focus on sustainability provide it with a strong competitive edge. Major global retailers like Walmart and Target are already sourcing heavily from India, helping the country’s export share in home textiles climb to 38%.

With these strengths, combined with government support and rising domestic demand, India’s textile and home textile industries are well-positioned to sustain growth and strengthen their global leadership in the coming decade.

BUSINESS STRENGTHS

1. Experienced Management Team
Rachit Prints is guided by a highly experienced management team. Promoter Mr. Anupam Kansal brings more than three decades of expertise in the textile and apparel industry, while Promoter Ms. Naina Kansal contributes two decades of experience in manufacturing speciality fabrics for the textile sector. Their extensive knowledge enables effective participation in strategic decision-making processes. Before the company’s incorporation, Mr. Anupam Kansal managed the business of printing and manufacturing clothes under the partnership firm M/s Rachit Prints. In 2003, the promoters incorporated Rachit Prints Private Limited, acquiring the partnership firm’s operations and expanding its product portfolio by establishing an automated manufacturing facility for customised and specialised textiles. The company’s products are sold across multiple states, including Assam, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana, Uttar Pradesh, Rajasthan, and West Bengal.

2. Advanced Knitting Technology
The company operates with state-of-the-art automatic machinery for printing and dyeing, along with advanced imported German and Chinese machines for circular knitting. The machinery includes models such as Mayer & Cie High Speed Circular Knitted and Mayer & Cie Circular Knitting Machine Model OVJA 1.6 Em 38 Diameter 20 Gauge, 2015, among others. In total, 18 advanced knitting technology-enabled machines are currently operational. These automated systems allow direct uploading of customer-specific designs, ensuring faster and more efficient weaving processes. Investment in these technologies has enhanced both functional efficiencies and the ability to cater to growing customer demand.

3. Government Incentives
The company benefits from government support through subsidies under the “Amended Technology Upgradation Fund Scheme (ATUFS)”, facilitated by the Government of India and the Ministry of Textiles. Subsidies under this scheme are released in full upon physical verification and certification of eligible investments. This incentive strengthens the company’s financial position by aiding in capital expenditure management and supporting future expansion.

4. Sustained Business Alliances
Rachit Prints prioritises building long-term and sustainable relationships with clients and suppliers. Operating under a B2B business model, the company has entered into Memorandums of Understanding with Sheela Foam Limited and Kurlon Enterprise Limited on March 20, 2025, for the supply of 3,00,000 meters of printed fabric and 13,00,000 meters of circular knit fabric, respectively. Such collaborations, along with the goodwill established in the industry, provide a competitive edge in securing new clients while strengthening ties with existing partners.

BUSINESS STRATEGIES

1. Expansion and Upgradation of Manufacturing Facility
To address the rising demand from existing clients and to meet the requirements of new customers, Rachit Prints aims to expand and upgrade its manufacturing capacities. This will be achieved through the installation of advanced machinery at the existing facility, thereby enhancing production capacity and supporting the commercialization of new products. Investments in technology and capacity expansion are expected to strengthen the product portfolio, improve service delivery, and generate long-term value for stakeholders and customers.

2. Enhancing Goodwill and Brand Recognition
The company places significant emphasis on building and maintaining goodwill by consistently delivering high-quality products that meet customer expectations. A strong reputation and customer satisfaction remain central to long-term success. Given the importance of brand recognition and loyalty in this industry, Rachit Prints seeks to strengthen its position by associating with reputed clients and enhancing its credibility in the market.

3. Improving Functional Efficiency
Strategic initiatives are underway to improve organizational efficiency by streamlining internal processes, optimizing inventory management, and strengthening logistics and distribution networks. These measures are designed to enhance operational effectiveness, improve financial performance, and position the company as an attractive option for investors seeking businesses with robust operational frameworks.

4. Expansion of Footprint in the Domestic Market
Currently supplying products across approximately 16 Indian states, Rachit Prints intends to expand its geographical presence further. The expansion strategy focuses on carefully selected regions that offer potential for growth, while ensuring consistent delivery of quality products without disruptions or delays. This measured approach aims to strengthen the company’s domestic market reach and support sustainable business growth.

BUSINESS RISK FACTORS & CONCERNS

1. Geographical Concentration of Manufacturing Facility
The company’s operations are concentrated in a single manufacturing facility located in Meerut, Uttar Pradesh. Any inability to sustain or expand operations in this region could adversely impact the company’s business, financial condition, operating results, cash flows, and future growth prospects. Reliance on a single facility exposes the business to significant concentration risks.

2. Exposure to Operational Risks
The manufacturing facility is susceptible to risks such as human error, power outages, equipment breakdowns, supply chain disruptions, underperformance of machinery, obsolescence, natural disasters, terrorist activities, accidents, and regulatory compliance requirements. Such risks may lead to operational delays, shutdowns, or reduced efficiency, thereby materially affecting production and profitability.

3. Fire Hazard Risks
The nature of the business involves handling highly flammable materials such as cotton yarn, viscose, spun, filament, and dyed yarn, which significantly elevates fire-related risks. A fire incident occurred on May 10, 2017, due to a short circuit, resulting in a raw material loss of approximately ₹37.20 lakhs. While preventive measures such as fire-resistant equipment, strategically placed water tanks, and strict fire safety protocols have been adopted post-incident, the inherent risk of fire remains a critical concern. Fire outbreaks may lead to personal injury, loss of life, damage to property, and potential environmental harm, as well as reputational damage and litigation.

4. Dependence on Manufacturing Facility and Process Risks
The business is highly dependent on the continued functioning of its manufacturing facility. Any slowdown, under-utilization, or shutdown—whether planned (maintenance, inspection, or upgrades) or unplanned (machinery failure, industrial accidents, or natural disasters)—can significantly disrupt operations. Prolonged breakdowns may require substantial repair or replacement costs, and delays in procuring new machinery could force suspension of operations. Additionally, community protests or local opposition to facility operations or expansion may result in delays or stoppages.

Summary :
Rachit Prints faces material risks due to its dependence on a single manufacturing facility in Meerut, Uttar Pradesh. Key vulnerabilities include geographical concentration, operational disruptions, fire hazards from flammable raw materials, and reliance on the smooth functioning of machinery and processes. While preventive safety measures have been implemented, any major incident or prolonged disruption could adversely affect the company’s operations, financial performance, and reputation.