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Vardhman Textiles


Vardhman Textiles is in the textiles business with manufacturing capacities in yarns and fabrics.

The company has generated consistent growth in revenues and profits – reporting about 900cr in operating profits on 3,600cr of revenues in the last financial year.  It has a relatively high debt load of 2,800cr – which would magnify the negative impact on profit during industry downturns.

The business is subject to the risk of cotton price spikes since it constitutes a large proportion of raw material cost.  It is also exposed to adverse movements in USD/INR exchange rates since a large proportion of revenues comprises of exports to US buyers.  Moreover, it is vulnerable to adverse government policies on export incentives and/or other restrictions along with frequent power shortages that blight the industry.
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