BUSINESS OVERVIEW

Vashishtha Luxury Fashion Limited is engaged in the business of exporting high-fashion hand embroidery work, accessories, and finished garments. The company has built a strong reputation for over a decade among international designers, fashion houses, and boutiques, establishing itself as a reliable partner in the global fashion industry.

The company caters to leading brands and fashion houses across Europe, the UK, USA, Australia, and Turkey, offering not only finished products but also customized design services in the apparel segment. Recognized as a 100% Export House, it has been associated with prestigious couture and prêt-à-porter brands across key international markets since inception.

Strengths & Capabilities

• Experienced Management Team: Guided by promoters who emphasize continuous improvement, the company operates under a leadership team with deep expertise across multiple operational facets.

• Design Excellence: Since 2010, the creative design team has worked closely with international clients, transforming ideas into exclusive creations. Unique embroidery collections are developed each season, showcasing new embellishment techniques to global buyers.

• Customer-Centric Approach: A strong focus on quality maintenance, process innovation, and confidentiality of client designs ensures customer satisfaction, repeat orders, and long-term relationships.

• Sustainability Commitment: The company actively uses sustainable materials in its creations, combining traditional artistry with modern design sensibilities.

Heritage & Craftsmanship

• Indian embellishments and embroidery techniques, dating back centuries, remain the foundation of Vashishtha’s artistry. Artisans from traditional lineages bring their heritage craftsmanship into contemporary fashion, ensuring that Indian embroidery continues to flourish in global couture.

• The company’s mission is to promote the timeless beauty of Indian surface ornamentation and hand embellishments worldwide, appealing to fashion houses and craft enthusiasts across continents.

Infrastructure & Facilities

• Headquartered in Mumbai, Maharashtra, the company operates with ~90 skilled embroidery artisans, supported by a professional production team. The end-to-end work process includes sourcing, swatching, sampling, and production for exports.

• A computerized design studio equipped with state-of-the-art technology and a dedicated material sourcing team enhance efficiency and creativity.

• A sample manufacturing facility is operated through the wholly-owned subsidiary, Vashishtha Embroidery Private Limited, while large-scale production support is managed by Anas Embroidery, a promoter group entity owned by Archana Odiya, Director of Vashishtha Luxury Fashion Limited.

In essence, Vashishtha Luxury Fashion Limited combines traditional Indian craftsmanship with contemporary design, sustainable practices, and international quality standards. With its global presence, heritage artistry, and strong operational base, the company continues to be a trusted partner for leading fashion houses across the world.

The Company does not have a supplier to provide labours on contract basis. They have total 21 employees on the payroll as on July 31, 2025. The Banker to the company is HDFC Bank Limited.

INDUSTRY ANALYSIS

India’s Textiles and Apparel Industry 

Executive Summary

• The Indian textiles and apparel market is projected to grow at a CAGR of 10% to reach US$ 350 billion by 2030, with exports expected to touch US$ 100 billion.

• The global apparel market is set to grow at 8% CAGR, reaching US$ 2.37 trillion by 2030, while the global textile & apparel trade will rise to US$ 1.2 trillion at 4% CAGR.

• India is the world’s 2nd largest producer of textiles and garments and the 3rd largest exporter, holding a 4.6% share in global trade.

• The sector contributes 2.3% to India’s GDP, 13% to industrial output, and 12% to total exports.

• The industry employs over 45 million people, including 3.5 million handloom workers, making it the second-largest employer after agriculture.

• In FY24, total textile exports (including handicrafts) stood at US$ 35.9 billion.

• The PLI scheme worth Rs. 10,683 crore (US$ 1.44 billion) aims to boost MMF (man-made fibre) apparel, MMF fabrics, and technical textiles.

• Exports are expected to reach US$ 65 billion by FY26.

Advantage India

A. Competitive Edge

• Abundant raw materials – cotton, wool, silk, and jute.

• Cost competitiveness and skilled manpower provide a strong global advantage.

• The “5F” strategy – Farm to Fibre to Fabric to Fashion to Foreign export, introduced by Mr. Piyush Goyal, aims to strengthen India’s global textile brand.

B. Policy Support

• 100% FDI (automatic route) allowed in the sector.

• Union Budget 2023-24 allocation: Rs. 4,389 crore (US$ 536 million).

• PLI scheme of Rs. 4,445 crore (US$ 594 million) approved for mega textile parks.

• 43 new partners empanelled under SAMARTH scheme in 2023 to train 75,000+ beneficiaries (total 1.83 lakh trained so far).

C. Robust Demand

• Technical textiles market expected at US$ 23.3 billion by 2027.

• Cotton production projected at 7.2 million tonnes (~43 million bales) by 2030.

• Readymade garment exports at US$ 14.23 billion in FY24, projected to surpass US$ 30 billion by 2027.

• Roadmap in place to achieve US$ 250 billion in textile production and US$ 100 billion exports by 2030.

D. Rising Investments

• Schemes like SITP, TUFS, and MITRA Parks encouraging private equity and job creation.

• Total FDI inflows in textiles stood at US$ 4.47 billion (Apr 2000 – Mar 2024).

Key Industry Facts

• Strong production base covering natural fibres (cotton, jute, silk, wool) and synthetic/man-made fibres (polyester, viscose, nylon, acrylic).

• The sector contributed 7% to industrial output in 2022 and 4% to global textile trade in 2023.

• India’s textile market size was US$ 223 billion in 2021, and is expected to touch US$ 350 billion by 2030.

• Contribution to GDP is expected to double from 2.3% to ~5% by 2030.

• US remains India’s largest textile export market, accounting for 32.7% of exports in FY24.

Cotton & Fibre Growth

• India is the world’s largest cotton producer, with 2023-24 output projected at 32.3 million bales.

• Total cotton availability in 2023-24 estimated at 34.6 million bales, against domestic demand of 31.1 million bales.

• Man-made fibre production stood at 2.15 million tonnes in 2022-23.

• Natural fibres remain the backbone, expected to grow from US$ 138 billion to US$ 195 billion by 2025.

Home Textiles – Strong Momentum

• Exports grew from US$ 5.3 billion (2017) to US$ 8 billion (2022) at a 7.1% CAGR.

• Home textile industry reached US$ 8.2 billion in 2021, growing at 8.3% CAGR (2014–21).

• Accounts for 4% of global home textile trade.

• Companies like Welspun India, Indo Count, Bella Casa are investing heavily in expansion and technology adoption.

• Welspun India’s Wel-Trak 2.0 ensures raw material traceability across the supply chain.

Technical Textiles – A New Growth Driver

• Grouped into 12 segments: Agrotech, Meditech, Mobiltech, Packtech, Sportech, Buildtech, Clothtech, Hometech, Protech, Geotech, Oekotech, Indutech.

• Key applications: healthcare, automotive, safety, infrastructure.

• National Technical Textile Mission (NTTM) approved 74 R&D proposals worth Rs. 232 crore (US$ 28.27 million).

• Uniform GST of 12% on MMF fabrics and apparel from Jan 2022.

• Market potential: 10% CAGR, penetration 9–10%, making India the 5th largest technical textile market globally.

• Exports of 247 technical textile items reached Rs. 5,946 crore (US$ 715 million) in Q1 FY24.

Export Strength & Global Demand

• India is the world’s 2nd largest textile exporter.

• Exports stood at US$ 35.9 billion in FY24.

• Trade agreements with Australia & UAE now allow zero duty access for Indian textiles.

• Strong potential in Africa and Latin America for the next decade.

Foreign Investments

• US$ 4.47 billion FDI inflows between 2000–2024.

• Growing partnerships between global majors and Indian companies.

• Global brands like Hugo Boss, Diesel, Liz Claiborne, Kanz already operational in India.

• South Korea’s Youngone to set up in Warangal’s Kakatiya Mega Textile Park, creating 12,000 jobs.

In summary, India’s textiles and apparel industry is poised for exponential growth, driven by policy support, global demand, rising investments, and strong domestic raw material availability. With the government’s push and increasing private sector participation, India is on track to become a global textile powerhouse by 2030.

BUSINESS STRENGTHS

1. Consistency in Quality
The company adheres to strict quality standards within its manufacturing facilities to ensure products consistently meet international customer requirements. Trained staff, advanced equipment, and well-maintained premises support quality consistency throughout production. Close collaboration with global clients enables the conversion of ideas into unique creations. The in-house design team continuously develops new embellishment techniques and seasonal embroidery collections, ensuring innovation and fresh offerings for the global market.

2. Rich Management Experience & Skilled Team
The organization is guided by a management team with extensive industry expertise and supported by a skilled workforce of craftsmen, trained labor, and job workers. This blend of experience and technical proficiency enables the anticipation of market trends, providing a competitive edge. The team’s capabilities span key areas such as cutting, stitching, washing, and finishing, ensuring smooth operations and optimal capacity utilization. Effective cost management has further supported sustained margins in the export process.

3. Customer-Centric Business Model
The business operates on a customer-first philosophy, with success driven by the ability to understand, address, and exceed client expectations. Constant assessment of changing customer preferences ensures timely product redesigns and trend adoption. A library of thousands of designs exported annually supports this adaptability. The model emphasizes delivering new and innovative designs on demand, strengthening customer satisfaction and long-term loyalty.

4. Smooth Flow of Operations
Over time, the company has built a broad and loyal client base through a relationship-focused approach. Strong existing relationships have resulted in repeat orders, reinforcing long-term partnerships. This consistent customer retention provides a strategic advantage in attracting new clients while expanding the business footprint across international markets.

5. Scalable Business Model
The business model is order-driven and designed for scalability, with a focus on maximizing in-house processing facilities and achieving economies of scale. This approach has proven successful over recent financial years, driving sustainable growth. Expansion potential lies in tapping into new domestic and international markets through aggressive product marketing, continuous innovation, and consistent quality assurance, thereby strengthening client trust and ensuring long-term scalability.

BUSINESS STRATEGIES

1. Expansion through Increased Sales Volume
The company’s growth strategy emphasizes scaling sales volumes by expanding operations, diversifying offerings, and strengthening geographical outreach. Growth in the domestic market is expected to create further opportunities for business expansion and revenue generation, while entry into additional markets is aimed at enlarging the client base and improving profitability.

2. Innovation and Designer Creativity
A strong focus is placed on setting new fashion trends by consistently creating designs that resonate with an evolving customer base. The ability to transform creative vision into reality is enabled through advanced technology and skilled personnel who oversee each new initiative with precision and innovation.

3. Operational Efficiency and Cost Optimization
In addition to expanding revenues, significant attention is given to reducing operational costs and enhancing efficiency. This includes minimizing wastage, strengthening production control, and implementing effective supervision to ensure cost competitiveness in the industry.

4. Commitment to Quality Assurance
Maintaining exceptional quality standards remains central to the company’s philosophy. Standard operating procedures are implemented to deliver reliable and timely services to clients. Leveraging employee expertise is considered vital to driving higher sales and improving customer retention through consistent service excellence.

5. Leveraging Established Goodwill
The brand’s longstanding goodwill in global markets serves as a key strength in reinforcing customer recall and loyalty. This strong market reputation is positioned as a foundation for exploring new avenues of sustainable growth and creating enduring value.

6. Expanding Customer Base through New Geographies
Marketing and export efforts are directed toward tapping new markets while strengthening existing customer relationships. Establishing a presence in additional regions enables the company to reach wider audiences. Long-term relationships with customers are fostered through value creation driven by innovation, quality assurance, and timely delivery.

7. Building a Professional and Empowered Organization
The company is committed to fostering a culture of transparency and accountability. A highly experienced team manages day-to-day operations with the objective of transforming employees into an empowered workforce of skilled professionals. This approach is designed to accelerate growth, strengthen organizational capability, and sustain long-term development.

BUSINESS RISK FACTORS & CONCERNS

1. Dependence on Subsidiary and Promoter Group Entity for Manufacturing
The company is heavily reliant on its subsidiary, Vashishtha Embroidery Private Limited, and the Promoter Group Entity, Anas Embroidery, for all sampling and manufacturing activities. Any operational inefficiencies, disruptions, or non-compliance with regulatory and industry standards at these entities could directly affect production timelines, order fulfillment, and revenue generation. Although the company plans to utilize IPO proceeds to establish an in-house manufacturing facility to reduce such dependency, future outsourcing may still be required if large orders exceed the proposed capacity.

2. Reliance on Limited Suppliers for Raw Materials
Procurement of raw materials is concentrated among a small group of suppliers. For the financial years ended March 31, 2025, 2024, and 2023, the top ten suppliers accounted for approximately 98.64%, 91.78%, and 64.50% of total purchases, respectively. While long-term supplier relationships have ensured quality, timely delivery, and cost advantages, any failure by suppliers to meet quantity, delivery schedules, or quality specifications could severely disrupt operations. Such disruptions may lead to delays in customer deliveries, loss of clientele, and potential liabilities, adversely impacting the company’s financial performance.

3. Revenue Concentration in Specific Countries
Although the company exports 100% of its products, a significant portion of revenue is concentrated in a few countries. Political changes, economic uncertainties, shifting customer preferences, or growing competition in these markets could adversely affect revenue streams. The inability to maintain or expand business in these regions may result in reduced profitability and increased exposure to market volatility.

4. Lack of Presence in the Indian Market
The company is entirely focused on exports and does not cater to domestic Indian consumers. This absence in the local market limits opportunities for brand recognition, customer loyalty, and product feedback from Indian clientele. The lack of a domestic presence may restrict future growth potential and reduce competitiveness in the Indian market, ultimately impacting long-term expansion prospects.

Summary : 
Vashishtha Luxury Fashion Company faces risks primarily due to its dependence on subsidiary and promoter entities for manufacturing, concentration of raw material suppliers, revenue reliance on select export markets, and lack of presence in India’s domestic market. While strategic measures such as establishing an in-house facility aim to mitigate some of these risks, continued exposure to supplier dependency, export market concentration, and limited geographical reach may adversely affect the company’s growth and profitability.