Texel Industries Doubles Geosynthetics Capacity

Company Performance

Texel Industries Doubles Geosynthetics Capacity

Expansion plans on track, commercial operations to begin by end of this month. Texel Industries Ltd expects to start commercial operations of its 10,080 MT facility for geosynthetics products at Kheda, Gujarat by end of September 2021. Texel is investing Rs 29.92 crore for this expansion and has already deployed Rs 14.73 crore from internal accruals and borrowings. Post completion of the expansion, installed capacity of the company will double to more than 19,000 MT per annum. Texel is raising upto to Rs 12.49 crore from the rights issue which is open for subscription from 31 August to September 14. Proceeds of the rights issue will be utilised to fund the expansion in Kheda facility. The company plans to issue up to 31,22,398 partly paid-up equity shares of face value of Rs10 each at an issue price of Rs 40 per equity share (including premium of Rs 30 per equity share). The rights entitlement ratio for the proposed rights issue is 55:92, i.e., 55 rights equity shares of Rs 10 each for every 92 equity shares of Rs 10 each held by the equity shareholders as on the record date, i.e., 17 August 2021. Closing price of shares on 2nd Sep 2021 was Rs 70.25 per share. Shailesh Mehta, Managing Director, Texel Industries Ltd said, "Expansion at our new facility in Kheda is progressing. We are also expanding product mix to include roof tile underlay, lumber wrap, and floating covers for water reservoirs, which significantly prevents water loss through evaporation.” The company manufactures a wide range of geosynthetics - tarpaulins, geomembranes, vermibed, geotank, geotube, grow bags, azollabed, and waterproof membranes. The products find applications in agriculture, aquaculture, horticulture, animal husbandry, civil engineering, water harvesting, water conservation and disaster relief, landscaping, transportation and waste management. For FY20-21, the company reported sales of Rs 82.79 crore and net profit of Rs 2.13 crore. For the Q1FY22, the company posted a healthy 51% growth in the net sales at Rs 27.74 crore, Net profit was up 70% to Rs 75 lakh. The performance was achieved on the back of robust demand in the domestic markets in the Tier 2,3 cities and rural areas post unlock.