Meenakshi (India) Ltd, a Chennai-based apparel exporter, is preparing for a direct listing on the BSE in June as it seeks to enhance visibility and position itself for future growth despite continuing uncertainty in global textile markets.
The nearly four-decade-old company, which supplies casual bottoms, shorts and jackets to premium international retailers such as Nordstrom and brands including GANT, Lyle & Scott and John Varvatos, is currently listed on the Calcutta Stock Exchange, where trading activity has remained limited.
“We are technically already a listed company. This is a direct listing and not an IPO,” said Ashutosh Goenka, Chairman and Managing Director of the company. He added that the company does not plan to dilute promoter stake or raise fresh capital through the market at present.
The promoters hold around 71 per cent stake in the company, while the remaining shares are owned by public investors, corporates and high-net-worth individuals. The company said it remains largely debt-free except for working capital borrowings, most of which are currently unutilised.
The proposed BSE listing comes at a time when apparel exporters are facing pressure from uncertainty over US tariff policies, elevated freight costs and delayed demand recovery in Europe.
Founded originally as a textile trading and fabric distribution business in 1982, the company entered apparel manufacturing in 1991 with its first factory in Ambattur, Chennai. Operations were later consolidated in Salem due to labour availability and sourcing advantages.
The company currently operates three manufacturing facilities in Salem with around 1,000 machines and integrated garment washing facilities. It specialises in premium casual wear products such as washed pants, shorts and jackets for US and European markets, including brands such as Marc O’Polo.
The company reported turnover of around ₹190 crore in FY25, with exports contributing over 99 per cent of revenues. However, management said growth has slowed because of tariff-related disruptions in the US market and weak demand conditions in Europe.
Meenakshi India had expanded capacity by adding two production lines in anticipation of export growth, but said the facilities could not be fully utilised after higher US tariffs disrupted sourcing decisions by overseas buyers.
For FY27, the company has conservatively projected revenues of around ₹176 crore and capacity utilisation of about 70 per cent, citing continued uncertainty in global trade policies and delays in implementing the proposed India-European Union free trade agreement.
Despite near-term challenges, the management remains optimistic about the long-term prospects for Indian apparel exporters if tariff disadvantages vis-à-vis countries such as Bangladesh and Pakistan are addressed through trade agreements.
The company is also evaluating future expansion into alternative manufacturing locations such as Odisha and Nepal to diversify production risks and improve labour availability.
Separately, the exporter has entered the direct-to-consumer segment with its homegrown menswear brand SHORTSTOP, focused on men’s shorts.