Integrated Punjab-based textile manufacturer AB Cotspin India has announced a major investment plan of up to Rs1,500 crore to expand its manufacturing capacity across India. The investment, to be funded through a mix of bank financing, internal accruals and government incentives, aims to double the company’s operations over the next 3 years.
In fact, the company has installed 14,592 additional spindles, bringing the total operational capacity to 50,832. It has also expanded its solar power capacity from 2,500 kW to 3,131 kW, reinforcing its commitment to green manufacturing. Further, it has entered into real estate development with a premium residential and commercial project in Ludhiana, Punjab. For this purpose, it has already completed land acquisition worth Rs18 crore.
On the textile front, AB Cotspin plans to add around 2,00,000 spindles to its existing capacity of 50,832, significantly boosting its production capacity. The new production facilities will be set up at key locations in Madhya Pradesh and Maharashtra and will include advanced infrastructure for spinning, ginning, yarn manufacturing and processing, as well as modern warehousing and logistics systems.
“This strategic expansion goes beyond scale; it’s about strengthening our integrated and sustainable manufacturing ecosystem,” explains Deepak Garg, MD, AB Cotspin India. “It will reinforce our market position, drive sales growth and enhance profitability.” A major focus of the project is green manufacturing, aligned with rising domestic and international demand for high-quality cotton yarn and eco-friendly textile solutions.
Strategic shift
The company is strategically exploring a move from a B2B to a B2C model, launching trendy textile products under its own brand to build a direct connection with consumers and strengthen its market presence. “Concurrently, we are entering the high-growth medical textiles sector to manufacture essential products such as surgical gowns and wound care materials, which are in high demand and align with our commitment to quality and safety,” adds Garg.
Also, plans under discussion include expanding into speciality fabrics and fast-fashion apparel. The company is also exploring opportunities in high-margin segments such as organic cotton and recycled cotton. Further, it is in the process of onboarding a brand ambassador in the near future, who may be a leading cricketer.
Another important shift the company plans to make is to produce fabrics from pre-consumer waste (fabric scraps, spinning waste) and post-consumer waste (discarded garments). In this process, fibres are mechanically or chemically broken down and spun into yarn again. Recycled yarn is used in the production of denim, home textiles and other sustainable fashion lines.
Advantage India
Despite geopolitical challenges, textile exports, including handicrafts, rose 2.1 per cent to Rs3,16,334 crore in FY25-26, up from Rs3,09,859 crore the previous year, according to recently released data from the Ministry of Textiles. Ready-made garments (RMG) remain the engine of Indian textile exports, growing 2.9 per cent to Rs1,39,349 crore and retaining their position as the single largest contributor to the sector’s overall export basket. Synthetic fabrics, polyester blends and technical textiles posted the strongest growth among the larger categories at 3.6 per cent, reaching Rs42,687 crore. Cotton textiles held steady with 0.4 per cent growth at Rs1,02,399 crore.
In fact, India registered export growth across more than 120 countries in FY 2025-2026, with the fastest-growing markets including the UAE, UK, Germany, Spain, Japan, Egypt, Nigeria, Senegal and Sudan. This comes at a time when the recent signing of the India-New Zealand FTA has added further market depth to the sector.
Indian textile exports are expected to improve significantly in light of recent landmark free trade agreements. The India-UK Comprehensive Economic and Trade Agreement, signed in July 2025, eliminated tariffs on up to 99 per cent of Indian exports to Britain, including textiles that previously faced duties of up to 12 per cent. Implementation is targeted as early as May 2026. The India-EU FTA, concluded in early 2026, has opened the world’s largest single trading bloc to Indian apparel with near-zero duties. The India-Oman CEPA, signed in December 2025, and the RoSCTL and RoDTEP schemes continue to provide policy support to the sector.
This strategic diversification is expected to help the company deliver improved performance over the next 2-3 years. The company is targeting 12-15 per cent revenue growth and 8-12 per cent net profit growth over the next 3 years. For March 2025, the company reported revenue of Rs300.80 crore and a net profit of Rs10 crore.
Going forward, with a new expansion-cum-diversification plan, the company hopes to achieve better margins. With a market capitalisation of around Rs480 crore, the stock is currently trading in the range of Rs215.01–227.95, with a 52-week high of Rs504.00 and a low of Rs215.01.