**Filatex India Ltd. Expands into Recycling and Renewable Energy**
Filatex India Ltd., a leading polyester yarn manufacturer in the country, is gearing up for its next growth phase with a strong emphasis on recycling and renewable energy. This initiative comes amid ongoing global trade uncertainties and domestic policy challenges affecting the sector. Chairman and Managing Director Madhu Sudhan Bhageria announced that the company is constructing a 75-tonne-per-day polyester recycling plant, marking its first significant effort to transform textile waste into chips and yarn. Bhageria highlighted the pressing environmental issue of polyester waste, which is non-biodegradable and frequently ends up in landfills. “We have developed and patented a technology to recycle textile waste into chips, which can then be spun into yarn. This is the solution the world is looking for,” he stated.
The recycling plant is expected to be operational by August-September 2026, with an estimated investment of around ₹300 crore funded through internal accruals. While the company views this as a pilot project, Bhageria expressed intentions to replicate similar facilities globally once the technology proves commercially viable. “Wherever waste is available and the economics make sense, we would like to set up such plants,” he added.
In addition to the recycling initiative, Filatex is expanding its existing production capacity by approximately 130-150 tonnes of yarn, anticipated to come online around the same timeframe. The company is also investing in renewable energy to power its operations, with plans for over half of its energy consumption to come from sustainable sources starting in January. This will be achieved through a captive project in which Filatex will hold a 26% equity stake. “This will not only reduce power costs but also enhance our sustainability profile,” Bhageria noted. Furthermore, the company is establishing a community boiler project to generate steam for its plants and supply neighboring industries.
Filatex has earmarked nearly ₹650 crore for capital expenditure across these initiatives. The recycling plant is projected to generate annual revenues of around ₹275 crore with strong margins, while the renewable energy project is expected to yield savings of ₹18-20 crore per year. The steam project, with an investment of ₹80 crore, is anticipated to contribute ₹60 crore in annual revenues after costs. “These projects should all be completed by September 2026, and by FY27 we should see the full benefits reflected in our results,” Bhageria stated, adding that the company aims to sustain at least 30% annual growth over the next two years.
Currently, polyester accounts for nearly 70% of global fiber consumption. Bhageria pointed out that over the past two decades, 95-96% of the increase in textile demand has been met by man-made fibers. With cotton stagnating and polyester gaining popularity in sportswear and fast fashion, Filatex anticipates strong demand in the future. As the second-largest polyester producer globally, following China, Filatex is well-positioned to capitalize on these trends.
**FAQ**
**What is Filatex India Ltd. doing to address polyester waste?**
Filatex India Ltd. is building a 75-tonne-per-day recycling plant to convert textile waste into chips and yarn, addressing the environmental concerns associated with non-biodegradable polyester waste.
