The Executive Director tells BW Retail World that the company is aiming for Rs 4,100 to Rs 4,300 crore in revenues in financial year 2026 (FY26)
After clocking approximately Rs 3,000 crore in revenues last fiscal year, Sanathan Textiles, an integrated and diversified yarn manufacturer, is aiming for Rs 4,100 to Rs 4,300 crore in revenues in financial year 2026 (FY26), a top official said.
In an interview with BW Retail World, Sammir Dinesh Dattani, Executive Director, Sanathan Textiles, noted that the company’s ideology centres on being a diversified, integrated manufacturer who is customer centric and adds value to the customers and other stakeholders. The company is using data to drive decisions and technology to automate to improve efficiency. Sanathan Textiles will also be bringing its cotton yarn spinning expansion in Madhya Pradesh. Edited Excerpts:
With plans for high quality automation, robotics and integration at the Punjab plant specifically, how do you see these technologies transforming the manufacturing agilities or cost efficiency?
As an organisation, we have been operating on SAP for over a decade, which has already given us robust data-driven insights and strong visibility across operations. This foundation enables us to leverage automation more intelligently rather than treating it as a standalone initiative.
Our Silvassa plant is already a highly automated environment with auto-packing and multiple digitalised processes. The Punjab plant represents a step change. It has been designed with a far more advanced automation architecture, integrating machine performance data, quality signals, and predictive analytics into the daily workflow. The cumulative impact is higher productivity per shift, greater reliability of output and an improvement in cost competitiveness. Automation at Punjab is not merely about reducing labour intensity, it is about creating a smarter, faster and more predictable manufacturing ecosystem that scales efficiently as demand increases.
Talking about the numbers, what are the financial targets that you have for this particular fiscal year? With respect to that, what levers will drive this growth?
While our Silvassa facility is working efficiently and we should get around Rs 3,000 crores in revenue, the newly commissioned Punjab facility will definitely have cost efficiency and margin improvements because of the location advantage that we have. Because of high automation, we will also have a lower manpower cost per tonne.
The Punjab facility is expected to generate at least Rs 1,100 crore in revenue by the end of March 2026, representing a 35 to 40 per cent increase compared to its revenue contribution up to March 2025. Further, we are seeing a good growth in the downstream at India level, and domestic consumption is growing, so we are positive of the outlook.
How exactly are you positioning yourself as a brand amid this shifting global demand and evolving trade dynamics?
Our brand positioning is fundamentally anchored in integration, diversification and responsiveness to real-time market demand. In an environment where global trade dynamics continue to evolve whether due to shifting supply chains, tariff regimes, or changing consumption patterns, our integrated and diversified yarn portfolio has consistently worked to our advantage. Being fully integrated allows us to maximise operational efficiency across the value chain. More importantly, it enables us to manage seasonality and demand cycles far more intelligently.
To give a practical example, yarns used for umbrellas see their peak demand around March to May, ahead of the monsoon. On the other hand, our customers engaged in ethnic and ceremonial wear begin their production ramp-up around June and July, in preparation for the wedding season. Because our manufacturing architecture is designed for agility, we can seamlessly shift between product categories, ramp up lines, and optimise capacity utilisation based on which demand cycle is peaking at any given time. This dynamic balancing ensures that we are not dependent on a single product segment or season. Our broader strategy is to position ourselves as a highly integrated, diversified yarn manufacturer that consistently adds value to the product and the customer’s supply chain.
Talking about the international expansion plans, are there any new markets that you want to explore going ahead?
The India consumption story is currently very compelling, and we are seeing it unfold in real time. Our newly commissioned facility in Punjab stands as evidence of this growing demand. Looking ahead, we will consider expanding into international markets as conditions improve. However, our core priority remains to position ourselves where margin potential is stronger.
What is the extent of impact that the United States’ tariffs are having on your business? How are you mitigating the impact?
The impact of the United States’ tariffs on our business remains limited due to the structure of our revenue mix and the flexibility embedded in our operating model. Direct exports account for only about 4 per cent of our revenue, while indirect exports contribute approximately 15 to 18 per cent. This relatively modest exposure ensures that tariff-related volatility does not materially influence our overall performance.
Our diversified product portfolio and strong fungibility, both in manufacturing and in sales strategy, allow us to rebalance volumes swiftly. Over the past two years, we have consciously reduced export dependence, shifting a larger share of volumes to the domestic market, where margins have been structurally superior. This proactive pivot has enabled us to maintain healthy profitability despite external trade disruptions. With a young population, rising incomes, and the fastest-growing consumption base globally, the Indian market offers significant opportunities for well-integrated local manufacturers like us.
