Filatex Unveils Rs 690 Crore Growth Plan, Bets Big On Circular Polyester Recycling
Filatex India has unveiled an ambitious Rs690 crore growth and transformation roadmap under its Tomorrow – Vision 2028 strategy, aimed at strengthening its core polyester filament yarn (PFY) business while establishing a leadership position in textile-to-textile recycling and sustainable manufacturing.
The investment programme comprises five strategic projects expected to enhance profitability, improve operational efficiency and align the company with the growing global demand for circular and low-carbon textile solutions.
A key pillar of the strategy is ECOSIS Ltd, a Rs 300 crore greenfield project that Filatex describes as India’s first commercial-scale textile-to-textile circular polyester recycling platform. Scheduled for commissioning in October 2026, the facility will have an annual capacity of 26,750 tonnes and is expected to generate EBITDA of Rs 80–85 crore at steady state. The project will convert end-of-life textiles into virgin-grade polymer and yarn, transforming Filatex from a conventional PFY producer into an integrated circular polyester manufacturer.
To accelerate commercial adoption, ECOSIS has already signed MoUs with Decathlon India and American & Efird Global LLC (A&E Threads) for trials of high-quality textile-to-textile recycled polyester. The partnerships are expected to validate the platform’s capabilities across sportswear, apparel and industrial thread applications.
Filatex is also investing Rs 235 crore in a brownfield PFY expansion project that will add around 55,000 tonnes per annum of capacity, primarily in FDY, DTY and POY yarns. The expansion is expected to generate approximately Rs 60 crore in annual EBITDA and strengthen the company’s presence in higher-value product segments.
The company is simultaneously accelerating its sustainability agenda through a Rs 30 crore renewable energy investment that will increase renewable power’s share in captive consumption from about 26 per cent to 55 per cent. Another Rs 85 crore project will monetise excess steam by supplying it to neighbouring industries, while a Rs 40 crore automation initiative involving auto-doffing and packing systems is expected to improve productivity, reduce labour dependence and enhance product quality.
Highlighting the market opportunity, Filatex noted that polyester accounts for nearly 59 per cent of global fibre production, while less than one per cent currently comes from textile waste. Growing regulatory pressure, extended producer responsibility (EPR) norms and rising demand for recycled content are expected to drive significant growth in textile recycling globally. The company estimates India’s textile recycling market could reach US$ 3.5 billion by 2030.
For Q1 FY27, Filatex reported revenue of Rs 1,145.3 crore, up 9.1 per cent year-on-year, while profit after tax increased 20.6 per cent to Rs 49.1 crore. Chairman and Managing Director Madhu Sudhan Bhageria said the company remains well-positioned to benefit from structural tailwinds such as the India-EU FTA, lower US tariffs and the global shift towards sustainable sourcing.
