Borana Weaves Limited (MAINBOARD)

Borana Weaves IPO Details

Company Financials In Crores

Company Overview

Name: Borana Weaves Limited
Incorporation: 2020
Headquarters: Surat, Gujarat, India
Industry: Textile Manufacturing (Synthetic Fabrics & Yarn)
Core Products:

Unbleached Synthetic Grey Fabric – Used as a base for dyeing/printing in:

Fashion & traditional textiles

Technical textiles

Home decor & interior design

Polyester Textured Yarn (PTY Yarn) – Processed from Polyester Oriented Yarn (POY Yarn).

Manufacturing Capacity:

Production Units in Surat, Gujarat.

Machinery (as of Sept 30, 2024):

15 Texturizing machines

6 Warping machines

700 Water jet looms

10 Folding machines

Key Processes: Texturizing, warping, weaving (water jet looms), folding.

Business Model & Value Proposition

• B2B Focus: Supplies grey fabric for downstream processing (dyeing/printing) to textile industries.

• Vertical Integration: Produces both PTY Yarn (in-house raw material) and finished grey fabric.

• Technology-Driven: Utilizes advanced textile manufacturing equipment for efficiency and scale.

Strength

Strategic Location: Surat is a textile hub, ensuring supply chain advantages.

Scalable Infrastructure: 700+ water jet looms enable high-volume production.

Diverse Applications: Fabric serves fashion, technical textiles, and home decor markets.

Weakness

Regulatory and Licensing Risk: Failure to obtain necessary approvals or permits for Proposed Unit 4 may disrupt operations and negatively impact financial performance.

Customer Concentration Risk: Over 98% revenue dependence on Gujarat-based customers without long-term contracts exposes the company to order cancellations and demand fluctuations.

Geographic Concentration Risk: High dependency on Gujarat for operations, offices, and suppliers makes the company vulnerable to region-specific disruptions such as natural disasters, violence, or regulatory changes.