Fiberweb (India) Limited has informed regarding Disclosure of material issue
FIBERWEB · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Fiberweb India has significantly scaled down and redirected its expansion strategy. The company originally planned to invest Rs. 165 crores in a nonwoven biodegradable flushable products project, but has now abandoned it due to unfavorable market conditions including slow demand growth (only 0.5% vs. expected 20%), global oversupply, and regulatory delays. Instead, the company will invest Rs. 50 crores (one-third of original) in nonwoven felted products made from recycled materials, projecting annual revenue of Rs. 175 crores and profit of Rs. 30 crores. The company also declined the sanctioned term loan from SBI. For the latest quarter, gross revenue stood at Rs. 972.07 crores with pre-tax profit of Rs. 176.65 crores.
The pivot to a smaller, recycled-material project reduces financial risk significantly while maintaining growth prospects. Declining the bank loan signals the company is avoiding leverage for this project. The quarterly numbers show strong current operations despite crude oil price volatility affecting raw material costs.