Finshots Daily The Borana Weaves IPO
May 20, 2025
Explore the intriguing world of Borana Weaves, a rising star in the Indian textile market. Learn about their impressive IPO and the factors contributing to their financial success. The discussion also delves into potential risks and questions surrounding the company's long-term sustainability, painting a comprehensive picture of the challenges and triumphs faced by this fabric manufacturer.
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Importance of Grey Fabric
- Grey fabric is the essential base material for India's garment industry and must be made before any printing or dyeing.
- This fabric originates mostly from polyester yarn, transformed through texturizing and weaving into uncolored cloth sheets.
Surat's Dominance in Synthetic Fabric
- Surat produces about 90% of India's synthetic fabric, making it the polyester capital of India.
- Burana Weaves, based in Surat, is rapidly expanding to meet growing demand with three plants and plans for a fourth via its IPO.
Rapid Financial Growth
- Burana Weaves grew its revenue fivefold and profits thirteen times between FY22 and FY24.
- It even surpassed last year's full-year profits in just nine months of FY25, showcasing rapid expansion.