Ashutosh Fibre adds synthetic capacity as PP line stays 64%

Ashutosh Fibre Limited plans to add 1,250 metric tonnes, or MT, of synthetic-yarn capacity at Petlad, Gujarat, although its separate 100% polypropylene-yarn line operated at 63.95% utilisation in FY26. The distinction is that the broader synthetic-yarn line reached 96.51% utilisation, while the polypropylene machinery cannot produce other yarn variants.

Why is Ashutosh Fibre adding capacity despite 64% polypropylene use?

Ashutosh Fibre is proposing additional capacity because its broader synthetic-yarn line was close to its annualised limit in FY26, unlike the dedicated 100% polypropylene line. The company produced 3,619 MT on installed capacity of 3,750 MT in the main line, yielding 96.51% utilisation. It plans to install machinery for another 1,250 MT a year of synthetic yarns ranging from 22 to 50 Ne at its existing Petlad facility.

The planned addition is not for the 100% polypropylene-yarn line of up to 2 Ne. The proposed 1,250 MT facility covers para-aramid spun yarn, high-tenacity polyester yarn, meta-aramid and flame-retardant viscose yarn, polypropylene yarn, modacrylic yarn, poly-poly core-spun yarn and stainless-steel yarn. It is planned to occupy 3,886.20 square metres at the Petlad site, where the existing manufacturing unit uses 20,570.89 square metres of a total 53,988.88 square metres.

Ashutosh Fibre says it intends to deploy compact spinning systems and Pinter Hard Core attachments for core-spun and specialty yarns. The disclosed strategy is to meet demand in technical and high-performance yarns while using existing infrastructure, workforce and administrative functions. Its capacity assumptions are based on three eight-hour shifts a day, 310 to 320 working days a year and 40 to 50 preventive-maintenance days.

How did Ashutosh Fibre’s two production lines diverge?

Ashutosh Fibre’s main synthetic-yarn line increased production and utilisation in each of the three reported fiscal years, while the 100% polypropylene line remained materially below capacity. Main-line installed capacity rose by 250 MT effective April 21, 2024, from 3,500 MT in FY24 to 3,750 MT in FY25 and FY26. Production then rose from 2,809 MT to 3,247 MT and 3,619 MT.

The gap widened to 32.56 percentage points in FY26, calculated from 96.51% for the main line and 63.95% for the 100% polypropylene line. The polypropylene line’s output fell by 24 MT between FY24 and FY26 despite unchanged 1,025 MT capacity, whereas main-line output increased by 810 MT over the same period. B.P. Oza & Associates certified the capacity and utilisation figures on July 28, 2026.

The utilisation data are annualised estimates rather than a statement of uninterrupted production. Ashutosh Fibre says the calculation reflects internal Miracle software and production records, raw-material availability, scheduled maintenance, breakdowns and expected operating efficiencies. The planned expansion therefore depends on sustaining demand and operations across the broader synthetic-yarn categories that use the proposed machinery.

Why can Ashutosh Fibre not redirect the polypropylene line?

Ashutosh Fibre cannot redeploy the 1,025 MT 100% polypropylene line because it uses a distinct, non-interchangeable set of machinery. The company states that this equipment is neither compatible with nor usable for para-aramid, high-tenacity polyester, meta-aramid, flame-retardant viscose, modacrylic, poly-poly core-spun or stainless-steel yarns made on its other synthetic-yarn machinery.

This equipment constraint turns a product-specific demand change into a capacity-utilisation issue. Ashutosh Fibre says demand for 100% polypropylene yarn was adequate when the machinery was installed, but additional competitors later entered the segment and caused a marginal decline in demand. Since the machinery cannot manufacture alternatives, the company says the dedicated line’s utilisation has exhibited a declining trend, from 66.38% in FY24 to 63.95% in FY26.

The product nevertheless remains a significant revenue category. Sales of 100% polypropylene yarn were Rs 26.93 crore in FY26, equal to 22.95% of revenue from operations, compared with Rs 25.82 crore, or 22.64%, in FY25 and Rs 23.37 crore, or 21.27%, in FY24. The revenue share rose by 1.68 percentage points across the three fiscal years even as dedicated-line output did not return to its FY24 level.

What demand and customer factors affect Ashutosh Fibre’s expansion plan?

Ashutosh Fibre’s expansion depends on demand across several technical-textile uses rather than on 100% polypropylene yarn alone. Its stated end markets include filtration, protective clothing, automotive friction materials, construction and infrastructure, while the planned machinery targets specialty synthetic yarns. The company also proposes to manufacture and sell modacrylic-based fabrics through third-party weaving and processing units, following trial production and repeat customer enquiries.

For the proposed fabric activity, Ashutosh Fibre expects sales of about 20,000 metres a month of modacrylic-based fabric. The model would consume its own modacrylic yarn, outsource weaving and use designated process houses before sale. That is a disclosed plan rather than reported production or revenue, and its outcome depends on continuing customer acceptance and execution by third-party units.

Customer concentration remains relevant to volume planning. Ashutosh Fibre’s top 10 customers contributed Rs 80.81 crore, or 68.85%, of FY26 revenue from operations, compared with 67.40% in FY25 and 72.11% in FY24. Its largest customer accounted for Rs 25.59 crore, or 21.80%, in FY26, while the top five customers represented 51.83%; changes in orders from these customers could affect utilisation of both existing and added equipment.

Exports supplied another demand channel, contributing Rs 45.76 crore, or 38.99% of FY26 revenue from operations, compared with 38.05% in FY25 and 43.59% in FY24. Ashutosh Fibre says its capacity programme is intended to support international markets and a greater export presence. It also has export obligations under Advance Authorisation and the Export Promotion Capital Goods scheme, under which failure to fulfil prescribed obligations can require payment of duties and interest.

Conclusion

Ashutosh Fibre’s capacity decision reflects two different operating conditions at the Petlad facility. The main synthetic-yarn line rose from 80.24% utilisation in FY24 to 96.51% in FY26 and is the stated target of the 1,250 MT expansion, while the 100% polypropylene line stayed near 64% because its 1,025 MT of dedicated machinery cannot be switched to other products after competition reduced demand.

The next measure to watch is whether production growth in the expandable product categories supports the proposed new capacity, alongside demand for modacrylic-based fabric targeted at about 20,000 metres monthly. It will also be relevant whether 100% polypropylene-yarn utilisation moves above the FY26 level of 63.95%, because Ashutosh Fibre has disclosed no plan to convert or repurpose that distinct machinery.