Spunweb Nonwoven IPO

Incorporated in 2015, Spunweb Nonwoven Limited is a Rajkot, Gujarat-based manufacturer and supplier of non-woven fabrics, including hydrophobic, hydrophilic, and UV-treated varieties. These fabrics are primarily used in applications such as doormats, bags, carpets, and tarpaulins. The company is known for its strong emphasis on quality control, utilizing advanced testing equipment like Universal Tensile Testing and Rewet Properties Testing at its state-of-the-art facilities. A significant portion—over two-thirds—of its revenue is driven by demand in the hygiene sector, with the rest coming from medical, packaging, agriculture, and construction applications.

Spunweb exports its products globally, with a presence in North America, Europe, and the Middle East, and has served markets in countries including the USA, UAE, Italy, Egypt, Saudi Arabia, Sri Lanka, Nepal, Kenya, and Nigeria. Its client base includes notable names such as RGI Meditech, Millenium Babycares, Sekhani Industries, and Poligof Micro Hygiene (India), among others. As of May 31, 2025, the company employed 199 people.

Spunweb Nonwoven IPO Strengths

• The company offers a wide range of polypropylene spunbond nonwoven fabrics, including hydrophilic, hydrophobic, super soft, UV treated, and antistatic variants, catering to sectors such as hygiene, healthcare, agriculture, packaging, and construction.
• Spunweb has demonstrated robust financial performance, with revenue growing from ₹113.82 crore in FY22 to ₹227.14 crore in FY25 and PAT rising from ₹3.33 crore to ₹10.79 crore over the same period, reflecting a strong CAGR and operational efficiency.
• Spunweb serves over 485 domestic and 20+ international clients, including major hygiene and healthcare brands, which provides recurring business, loyalty, and geographic diversification.
• The company emphasizes customer satisfaction, ethical business practices, and long-term relationships, which have helped build a strong reputation and client trust.
• With underutilized production capacity (utilization at 73.24% as of March 2025), Spunweb is well-positioned to scale up operations to meet increasing demand with minimal additional investment.
• Spunweb’s products are designed for hygiene, safety, and environmental compliance, including offerings like biodegradable and UV-treated fabrics, aligning with global trends toward sustainable materials.

Spunweb Nonwoven IPO Risks

• The company relies on a small number of key suppliers for its raw materials and does not have long-term supply agreements. Disruption or discontinuation by any major supplier could impact production costs, timelines, and overall profitability.
• While Spunweb has a diversified customer base, its subsidiary SIPL derives a significant portion of revenue from a limited number of customers. Loss of any major client or failure to acquire new ones could materially affect financial performance.
• The nonwoven fabric industry is subject to strict quality and safety standards, especially for hygiene and healthcare applications. Non-compliance could lead to product recalls, penalties, or reputational damage.
• The company’s profitability is sensitive to fluctuations in the prices of polypropylene and other key inputs. Inability to pass on increased costs to customers could compress margins.
• Global market volatility, geopolitical tensions, and disruptions in international trade could affect raw material supply, export demand, and overall business stability.