Meenakshi India Plans to More Than Double Apparel Manufacturing Capacity to 38 Lakh Pieces by FY30
Company Targets ₹500 Crore Revenue by FY30 with Phased ₹40–50 Crore Capacity Expansion
Meenakshi India Ltd, a manufacturer of premium apparel for international brands, has announced plans to more than double its manufacturing capacity to 38 lakh pieces by FY30 from the current around 18 lakh pieces.
The planned expansion will be supported by phased capital expenditure of approximately ₹40–50 crore, as the company expects demand for Indian apparel manufacturing to strengthen amid global sourcing diversification.
Capacity Expansion Planned in Phases
The company plans to establish two manufacturing units in phases based on market demand.
The first manufacturing unit is expected to become operational around FY28, while the second unit is targeted for FY30.
Meenakshi India also expects to progressively increase capacity utilisation, with utilisation targeted at around 70 per cent in FY27.
Demand Expected to Benefit from China Plus One Strategy
According to the company, global apparel brands are increasingly diversifying sourcing under the China Plus One strategy, creating opportunities for Indian manufacturers with established production capabilities, quality standards and long-standing customer relationships.
“We have a unique opportunity to emerge as one of the world's preferred apparel sourcing destinations. For the first time in many years, multiple structural forces are converging in India's favour,” said Ashutosh Goenka, Chairman and Managing Director, Meenakshi India Ltd.
FY30 Financial Targets
Meenakshi India has set a target of achieving:
- ₹500 crore revenue
- ₹65 crore PAT
by FY30.
Management described these targets as conservative, considering the evolving global trade environment and the fact that several key free trade agreements are yet to become fully operational.
“That is a conservative figure. We should be able to achieve this... We have actually kept these things in mind and kept a conservative target. We are hopeful of surpassing these figures,” Goenka said during the company's Q1 FY27 earnings call.
The company stated that future capacity additions will be aligned with rising demand and introduced progressively based on market requirements.
Q1 FY27 Financial Performance
Meenakshi India reported a 153 per cent year-on-year increase in consolidated PAT to ₹7.12 crore for Q1 FY27, compared with ₹2.81 crore in the corresponding quarter last year.
Revenue from operations stood at ₹32.24 crore, compared with ₹33.39 crore in Q1 FY26.
The company's textile segment recorded an operating profit of ₹3.43 crore, compared with ₹28.24 lakh in the corresponding quarter of the previous year.
According to the company, the improvement was driven by the performance of its core garment business, which returned to positive operating profitability.
Geographic Diversification Strategy
Alongside expanding manufacturing capacity in India, Meenakshi India is also pursuing geographical diversification to manage tariff and geopolitical risks.
The company has signed a contract manufacturing memorandum of understanding with an existing factory in Sri Lanka, providing customers with an alternative country-of-origin option in the event of adverse tariff developments.
It is also evaluating potential manufacturing facilities in Nepal and Vietnam as part of its longer-term diversification strategy.
Customer Base and Market Expansion
The company stated that its US customer base has remained largely intact despite tariff-related challenges, although shipment volumes have moderated due to tariffs and customer inventory levels.
Management said it worked with customers on pricing and discounts to absorb part of the increased costs while retaining business.
Meenakshi India is also expanding its presence in Australia, Japan and Canada, with the company reporting growth in its Canadian business during the past year.
Product Portfolio
Meenakshi India primarily manufactures premium bottom-wear and outerwear for international brands.
The company is also expanding into adjacent categories, including women's wear, outerwear and athleisure.
According to the company, its focus remains on premium apparel manufacturing, where sourcing decisions are influenced by product quality, technical expertise, compliance, flexibility, product complexity and long-term customer relationships.
Headquartered in Chennai, Meenakshi India Ltd provides end-to-end apparel manufacturing solutions for international brands.