Near-zero finance cost textile company based in Gujarat, increases capacity by 6 lakh to 18 lakh meters/month
DSIJ Intelligence-1Categories: Mindshare, Trending
Despite this 142.22 per cent increase in profitability and a market capitalisation of Rs 328.32 crore, the stock remains competitively valued with a PE of 18x, notably lower than the industry average of 21x.
Varvee Global Limited (formerly Aarvee Denims and Exports Limited) has announced a significant boost to its manufacturing capabilities at its Ahmedabad facility. The company has increased its production capacity for non-denim shirting and suiting fabrics by 6 lakh meters per month. This expansion raises the total installed capacity in this segment from 12 lakh to 18 lakh meters per month, marking a pivotal step in the new management’s strategic shift toward product diversification.
This growth was achieved by optimising existing manufacturing infrastructure and implementing advanced production processes. By focusing on operational excellence, the company can scale its output while maintaining the high-quality standards required for value-added textile products. This development is a key milestone in Varvee’s long-term roadmap to eventually reach a production capacity of 50 lakh meters per month in the non-denim category.
With this expanded capacity, Varvee Global Limited is well-positioned to meet rising market demand and enhance overall customer satisfaction. The move allows the company to explore new business opportunities across diverse markets and strengthens its competitive edge in the textile industry. This strategic expansion underscores the company’s commitment to innovation and sustainable growth beyond its traditional denim roots.
About the Company
Established in 1988 and formerly known as Aarvee Denims and Exports Ltd, Varvee Global Ltd is a vertically integrated textile manufacturer based in Ahmedabad that specialises in denim, non-denim, shirting, and suiting fabrics. Following a strategic management takeover and restructuring in 2025, the company achieved a Bank debt-free status and shifted its focus toward high-value diversification, including the launch of a new Consultation and Advisory Division and the expansion of its non-denim production capacity from 12 lakh to 18 lakh meters per month (targeting 50 lakh). Operating primarily from its composite facility in Narol, the company manages end-to-end production—from in-house yarn spinning to finishing—while maintaining a sustainable energy footprint through 20.5 MW of wind power capacity.
The company has undergone a significant financial turnaround in the first full quarter under its new management team, marked by a 79.8 per cent YoY surge in Revenue from Operations. This operational shift led to a swing to a positive EBITDA of Rs 13.85 crore with an impressive 49.75 per cent margin, supported by near-zero finance costs that signal successful balance sheet repair. The broader FY25 performance further highlights this recovery, with net sales reaching Rs 42 crore and a net profit of Rs 19 crore—a dramatic reversal from the Rs 45 crore loss recorded in FY24. Despite this 142.22 per cent increase in profitability and a market capitalisation of Rs 328.32 crore, the stock remains competitively valued with a PE of 18x, notably lower than the industry average of 21x.
Disclaimer: The article is for informational purposes only and not investment advice.