AB Cotspin Unveils ₹15 Billion Expansion Plan, to Add 200,000 Spindles and Scale Up Textile Manufacturing

AB Cotspin India Ltd has approved a massive ₹15 billion investment aimed at transforming its manufacturing capabilities across the cotton and textile value chain. The centerpiece of this expansion is the proposed addition of 200,000 spindles, which will significantly boost yarn production and support the company’s ambition to become a leading integrated textile player.

 

Key Highlights:

 

The investment will be deployed in phases across Punjab, Haryana, and Gujarat, focusing on cotton yarn, knitted fabrics, and cottonseed oil.

 

The 200,000 spindle addition will more than 10x the company’s current capacity, positioning it to meet rising domestic and export demand.

 

AB Cotspin will also expand its renewable energy infrastructure, with solar capacity already scaled to 3,131 KW as of January 20252.

 

Operational Context:

 

The company recently secured a ₹7.5 crore order for 300 metric tons of cotton yarn, reinforcing its market traction.

 

FY25 revenue reached ₹298 crore, with net profit of ₹9.99 crore and promoter holding rising to 52.5 percent.

 

The expansion will include backward integration into cotton ginning and oil extraction, improving cost efficiency and product traceability.

 

Strategic Outlook:

 

Analysts expect the move to enhance economies of scale, improve export competitiveness, and align with India’s textile PLI scheme.

 

The investment supports AB Cotspin’s sustainability goals and long-term growth in eco-friendly textile manufacturing.

 

Sources: Business Standard, Business Upturn1, MarketScreener, Screener.in (July 2025)