Spunweb Nonwoven Ltd Management Discussions

The global market for hydrophobic and hydrophilic non-woven fabrics is expected to reach approximately USD 40.77 billion by FY2029E. The market is projected to grow at a CAGR of 5.7% between FY2026 and FY2029, supported by increasing demand from key end-use industries such as hygiene, healthcare, medical products and packaging. The moisture-repellent and moisture-absorbent properties of these fabrics make them particularly suitable for applications including diapers, wipes, sanitary products and medical equipment (Source: MAIA Research).

The Indian non-woven fabric market is expected to witness significantly stronger growth, with demand projected to increase at a CAGR of 11.2% from FY2026 to FY 2029E. This growth is being driven by rising healthcare and hygiene awareness, increasing disposable incomes, urbanisation and the expanding adoption of non-woven products across hygiene, medical, agriculture and industrial applications. Indias growing manufacturing capabilities and increasing competitiveness in spunbond non-wovens are also expected to support the countrys expanding role in the global non-woven fabric industry. (Source: MAIA Research).

The demand for non-woven fabrics is being driven by several key factors, including rising hygiene awareness, increasing demand for premium-quality products, growing adoption in agriculture, and expanding export opportunities.

Indias rapidly expanding middle class, rising disposable incomes, urbanisation and growing health consciousness are driving greater adoption of hygiene and healthcare products made from non-woven fabrics.

Increasing consumer preference for high-quality products is supporting demand for premium non-woven fabrics. Soft-touch and hydrophobic/hydrophilic SSS grades are gaining traction and commanding higher prices.

Growing awareness of modern agricultural practices is encouraging the use of non-woven fabrics in agriculture. Crop and fruit covers, frost covers and weed mats are witnessing increasing adoption due to their ability to improve crop protection and productivity.

Indian non-woven fabric manufacturers are increasingly becoming competitive with Chinese suppliers. Rising exports and greater geographic diversification are helping Indian manufacturers expand their international presence while reducing dependence on a single market.

During the year under review the Company has generated consolidated revenue from its operation of Rs. 32,448.22 Lakhs as compared to previous year of Rs. 22,559.06 Lakhs. Consolidated Profit after tax was Rs. 2,306.80 Lakhs during the year under review as compared to profit after tax of Rs. 1,079.22 Lakhs of previous year. Your directors expect further growth of the company in the year to come.

The Companys future strategy is focused on expanding its market presence, strengthening its product portfolio, enhancing production capabilities, and improving cost efficiency through sustainable initiatives.

Expand Market Reach:

The Company plans to penetrate new end-user industries, diversify its customer base, and strengthen its geographical footprint. Increased participation in international trade exhibitions across the Asia-Pacific region and the USA will help build stronger customer relationships and create new business opportunities.

Grow Product Portfolio:

The Company intends to diversify its product range by introducing various lamination coatings catering to multiple industries. It also plans to strategically enter the agriculture and medical sectors with high-quality, specialized products, thereby creating additional avenues for growth.

Scale Up Production:

The introduction of new machinery is expected to increase production capacity while enhancing product quality, operational efficiency, and cost-effectiveness. The Company also plans to develop new product lines focused on high-demand sectors to support sustained business growth.

Progress through Clean Energy:

The Company is strengthening its focus on renewable energy through commissioned solar projects. These initiatives are expected to reduce dependence on conventional energy sources and substantially lower energy costs over the long term, thereby supporting improved financial performance and sustainable growth.

A well-defined risk management mechanism covering the risk mapping and trend analysis, risk exposure, potential impact and risk mitigation process is in place. The objective of the mechanism is to minimize the impact of risks identified and taking advance actions to mitigate it. The mechanism works on the principles of probability of occurrence and impact, if triggered. A detailed exercise is being carried out to identify, evaluate, monitor and manage both business and non-business risks.

The Company has identified its business segment as Primary Reportable Segment. There are no other Primary Reportable Segment and the Companys Operations fall under a single segment "Non-Woven Fabric". Hence, Segment reporting is not applicable as per Accounting Standard (AS) - 17 - Segment Reporting.

The Company has followed all the treatments in the Financial Statements as per the prescribed Accounting Standards.

The Company has an effective internal control system, which ensures that all the assets of the Company are safeguarded and protected against any loss from unauthorized use or disposition.

The Company has put in place adequate internal financial controls with reference to the financial statements commensurate with the size and nature of operations of the Company. During the year, such controls were tested and no material discrepancy or weakness in the Companys internal controls over financial reporting was observed.