Alpine Texworld Limited

1. Overview

Alpine Texworld Limited (formerly known as 'Alpine Spinweave Limited') is an Ahmedabad, Gujarat-based, vertically integrated textile manufacturer operating in the weaving and spinning segment of the Indian textile industry. Incorporated in February 2016, the Company began commercial production in April 2017 with a weaving unit (Manufacturing Unit 1) and has since scaled into a two-unit manufacturing base, adding a spinning unit (Manufacturing Unit 2) in March 2025 to backward-integrate its Yarn requirements.

The Company's core activity is the manufacturing and trading of Grey Fabric and Yarn, supplemented by yarn sizing job-work services.

Alpine Texworld holds a 97% stake in subsidiary Alpine Cottweave LLP, which operates an additional weaving facility and contributed ₹123.00 crore (35.89%) of consolidated revenue and ₹8.38 crore (38.58%) of consolidated PAT (excluding minority interest) in Fiscal 2026. Together, the Company and its subsidiary have an aggregate installed weaving capacity of 276 lakh metres per annum, plus a 6,000 MT per annum spinning capacity at Manufacturing Unit 2.

Geographically, operations remain heavily concentrated in Gujarat, which accounted for 97.37% of Fiscal 2026 revenue from operations, with a small residual presence in Punjab, Uttar Pradesh, Delhi and Haryana.

2. Business Model and Revenue Streams

Alpine Texworld's revenue model is built around manufacturing and sale of Grey Fabric and Yarn, supplemented by trading and job-work income. The Company does not operate under long-term customer contracts — sales are order-book driven, with each purchase order recorded and fulfilled against agreed timelines, and revenue recognized on dispatch.

Revenue by product/service line (₹ Crore):

Customer concentration is a defining feature of the business. Customer names are largely undisclosed in the RHP for confidentiality, but concentration metrics are notable:

The Company has no long-term agreements with any customer, and its top 10 customers are predominantly based in the same Gujarat textile hub, exposing it to correlated demand and credit risk. On the input side, raw material and traded-goods purchases (largely raw cotton and yarn) totalled ₹272.98 crore in Fiscal 2026 (84.44% of total expenses), similarly concentrated among a small supplier base.q

3. Products and Service Portfolio

Alpine Texworld operates two principal manufacturing units plus its subsidiary's facility:

• Manufacturing Unit 1 (Weaving + Sizing): 112 high-speed Toyota shuttleless air-jet looms, with annual installed capacity of 180 lakh metres of Grey Fabric, plus one Karl Mayer high-speed multi-cylinder sizing machine (6,650 MT/annum yarn-sizing capacity).
• Manufacturing Unit 2 (Spinning): Four open-end rotor spinning machines from Saurer Intelligent Technology, commissioned March 2025, with 6,000 MT/annum installed capacity — the Company's backward-integration move to reduce reliance on externally sourced Yarn.
• Alpine Cottweave LLP (Subsidiary, 97% held): 72 high-speed Picanol NV air-jet looms adding 96 lakh metres/annum, taking group weaving capacity to 276 lakh metres/annum.
• Proposed Manufacturing Unit 3 (funded from IPO proceeds): A further 48 looms, expected to add 77.50 lakh metres/annum (≈28% capacity expansion), targeted for commercial production by March 2027.

Capacity utilization (a key operating metric for a manufacturing-led business) has consistently run near or above nameplate levels on the weaving side:

The Company also derives a modest share of revenue from trading of Grey Fabric and Yarn (opportunistic, non-core) and from yarn-sizing job work performed for third parties. Complementing operations, Alpine has installed rooftop and ground-mounted solar capacity (aggregating over 10 MW across Solar Units 1–3) to offset grid power costs — a meaningful lever in a power-intensive weaving/spinning operation.

4. Key Business Strengths

• Vertically integrated, backward-linked operations: Commissioning of the in-house spinning unit (Manufacturing Unit 2) reduces dependence on externally procured Yarn, insulating margins from open-market Yarn price volatility.
• Scaled weaving base with high utilization: Aggregate group weaving capacity of 276 lakh metres/annum, running at 107.30% utilization in Fiscal 2026, signals strong demand absorption and asset efficiency.
• Location advantage in the Gujarat cotton belt: Proximity to major cotton-producing districts (Surendranagar, Rajkot, Jamnagar, Bhavnagar, Amreli) provides consistent access to quality raw material and reduces logistics dependency.
• Automated, global-brand machinery: Deployment of Toyota, Picanol, Karl Mayer and Saurer equipment support production consistency and operating efficiency versus less-automated peers.
• Promoter experience: Promoters bring a combined 25+ years (Sumit Agarwal, Sandeep Agrawal) and 14+ years (Sachinkumar Agrawal) of textile-industry experience, collectively holding 90.36% of pre-Issue equity.
• Renewable energy adoption: Over 10 MW of rooftop and ground-mounted solar capacity reduces grid-power dependency and supports cost efficiency in an energy-intensive process.

5. Future Growth Strategy

• Capacity expansion via Proposed Manufacturing Unit 3: Addition of 48 looms (≈28% capacity increase) funded substantially from IPO proceeds, targeted for commercial production by March 2027.
• Continued backward integration: Further ramp-up of in-house spinning to reduce open-market Yarn procurement and stabilize input costs.
• Land bank for future expansion: Recent acquisition of six contiguous land parcels adjacent to existing units positions the Company to add further manufacturing capacity as market conditions permit, funded through debt and internal accruals.
• Deleveraging via IPO proceeds: Planned prepayment/repayment of existing borrowings (₹52.20 crore of Net Proceeds) to strengthen the balance sheet and reduce finance costs.
• Deepening renewable energy usage: Continued investment in solar capacity to structurally lower power costs as a share of the cost base.
• Leveraging promoter and subsidiary synergies: Continued integration of Alpine Cottweave LLP's weaving capacity with the parent's operations to optimize group-wide capacity utilization.