Aritas Vinyl

• Aritas Vinyl is coming out with an initial public offering (IPO) of 79,83,000 shares in a price band of Rs 40-47 per equity share. 
• The issue will open on January 16, 2026 and will close on January 20, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 4.00 times of its face value on the lower side and 4.70 times on the higher side.
• Book running lead manager to the issue is Interactive Financial Services.
• Compliance Officer for the issue is Shikha Makhija.

Profile of the company

Aritas Vinyl is engaged in manufacturing of technical textile, such as “Artificial leather” also known as PU Synthetic leather and PVC-coated leather, using the latest technology known as Transfer Coating Technology. PVC leather, also known as polyvinyl chloride leather, is a type of synthetic leather made by coating a fabric typically polyester or cotton - with a layer of PVC (polyvinyl chloride) offering a soft, flexible, and alternative to genuine leather. It is designed to mimic the appearance and feel of genuine leather offering a range of additional benefits that make it ideal for various commercial and industrial applications. PVC-Coated Leather: Manufactured by coating fabric with polyvinyl chloride, providing enhanced durability, water resistance, and affordability. 

The company is selling its products to distributors, wholesaler and manufacturers, and also exporting to other country like Greece, Oman, UAE, Sri Lanka, USA and also to SEZ. Traditionally Natural Leather or animal leather is procured by killing Animals and has caused Animal activist to express a huge concern. Synthetic Leather is widely replacing traditional leather. Synthetic Leather is economical, durable, requires low maintenance and easy fabric to work with. Its products come in variety of colour, texture and patterns which find application in a wide range of products in different industry such as seat covers, door covers, dashboards, shoe uppers, shoe lining and insoles, sandals, furnishing and Upholstery, purses, bags and briefcases, diary covers and stationery items, garments, belts, wallets etc. The Key features of PVC Leather are Durability, Waterproof & Easy to Clean, Cost-Effective, Customizable, Eco-conscious Options, etc. Mostly the applications of PVC Leather are Furniture & Upholstery, Automotive, Footwear, Fashion Accessories, Healthcare & Hospitality and Marine & Outdoor Uses. It can produce PVC Coated Leather fabric customized to client specifications, including shade, embossing patterns, and prints, with fabric thickness ranging from 0.35 mm to 6 mm.

The company’s manufacturing facility is situated in Ahmedabad, admeasuring approximately 6,067 square meters, with an installed production capacity of around 7.8 million meters per year, allowing it to effectively meet a wide range of client demands. Additionally, its facility is equipped with an in-house testing laboratory, ensuring consistent monitoring and control over the quality of its products. It continuously engaged in product development based on the samples or specifications received from its existing and potential customers. Its quality control and quality assurance team carry out various technical and manual tests to its finished products to ensure they do not suffer rejections, thereby ensuring defect free quality products for its customers and generating value for it. Further, it also undertakes product testing especially, durability testing in its in-house accredited lab. Its quality assurance and quality control department has enabled it to expand its business in domestic and international market.

Proceed is being used for:

• Capital expenditure for solar power project
• Working capital
• General corporate purpose 

Industry Overview

The Indian market for technical textiles is the 5th largest in the world continuously expanding at a CAGR of 8-10% per annum, over the past 5 years at $21.95 billion in 2021-22. The production of technical textiles accounted for $19.49 billion and imports accounted for $2.46 billion. The Technical Textile segment accounts for around 15% of the overall textile and Apparel market in India and is significant in terms of employment and investment. High-performance textiles, also known as technical textiles, are used in a variety of industries, including agriculture, medicine, building infrastructure, automotive, aerospace, sports, protective gear, packaging, and so on. The demand for these products is driven by a country's development and industrialization. Given the rate at which emerging economies are industrializing, the market for technical textiles is expected to grow in parallel with global industrial growth. In the last few years, the Indian market for technical textiles has expanded dramatically, due to applicable innovations and increased public knowledge of technological textiles. The technological textile business in India has enormous potential and is a rising sector that will contribute considerably to the development of a new and developed India by 2047.

Meanwhile, the leather industry has a significant impact on the Indian economy. It is among the top ten foreign exchange earners in the country. Indian cattle & buffalo population accounts for 20% and the goat & sheep population of the country accounts for 11% of the world’s total. This places it in a dominant position in terms of affluent raw material availability. With the leather industry being among the oldest trade in the country, India has strong skilled manpower and innovative technology. The country has a strong and eco-sustainable tanning base and modern manufacturing units. It also has strong support from the leather, chemical and auxiliary industries. The industry employs about 4.42 million people in the country. It is a prominent source of employment in the rural parts of India with women employed at about 30% in the sector.

India is the second-largest exporter of leather garments, the third-largest exporter of saddlery & harnesses and the fourth-largest exporter of leather goods in the world. The garments sector accounted for 7.62% of the country’s total leather exports in FY25 (April-December). Out of the total leather and leather products exported out of India, the footwear segment accounts for the majority of exports, with FY25 (April-December) exports valued at Rs 1,26,902 crore ($1.51 billion). Footwear (Leather Footwear, Footwear Components & Non-Leather Footwear) holds the major share of 51.9% in the total export of leather and leather products with an export value of $598.58 million. During FY25 (April-December), the total export of leather products to the USA was valued at Rs. 6,870 crore ($795.55 million), an increase of 16.30% YoY. During the same period, Germany and the UK imported leather and leather products worth Rs 3,567 crore ($413.08 million) and Rs. 2,888 crore ($334.44 million) from India, respectively. 

Pros and strengths

Quality & Customization: The company is ISO 9001:2015 and IATF 16949:2016, certified for quality management system standard, to comply with the norms of International Standards. It strives hard to maintain quality standards of its product. Quality assurance and quality control are integral part of its manufacturing operations. It caters to specific client requirements, ensuring bespoke texture, color, pattern and feel of the product. It customizes the product as per the specific requirement of its client. Quality is an ongoing process of building and sustaining relationship. Its testing laboratory is equipped with necessary infrastructure to test raw material and finished goods. Keeping in view of the expectations of its customers for the quality of its products, it takes special care from procuring raw material to packing of finished goods.

Fully integrated manufacturing plant set up at a strategic location: The company’s manufacturing facility near Ahmedabad is well equipped with the machineries and infrastructure for the production of technical textile, such as “Artificial leather” also known as PU Synthetic leather and PVC-coated leather. Its state-of-the-art manufacturing facility Utilizing the transfer coating technology and techniques to produce its final products efficiently, safely, and with high quality. It has an integrated automated and efficient production process whereby it will have complete control over final products, quality, cost and output time, it is able to offer competitive pricing without compromising on quality. Its ability to scale production ensures that it meets both small and large client demands promptly. Its facility is designed with ‘Zero Liquid Discharge Solution’, where no industrial waste water is discharged into surface waters, thereby minimizing environmental pollution.

Enhanced production capacity within a span of three years: The company has started the Manufacturing in the financial year 2022 with an installed Capacity of 42 lakhs meters per year. In the very first year it has utilized 50% of installed capacity and in the next year it has utilized almost 85% of the installed capacity. In the short span of time, it has started production smoothly and the products are also well accepted by the market. In this year of operation i.e. In Fiscal 2023-24 it has increased the installed capacity from 42 lakhs meters to 78 Lakh meters by investing in the plant and machinery.

Risks and concerns

Concentration of revenues with top 10 customers: The company derived a significant portion of its revenue from key customers. The company has garnered 51.85%, 48.43%, 53.41% and 57.69% of its total revenue from top 10 customers for the period ended August 31, 2025, Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively. The loss of any one or more of such key customers for any reason including due to failure to negotiate acceptable terms of purchase order, contract renewal, negotiations, disputes with customers, adverse change in the financial condition of such customers, including due to possible bankruptcy or liquidation or other financial hardship, merger or decline in their sales, reduced or delayed customer requirements, or work stoppages could have an adverse effect on its business, results of operations and cash flows .

Limited operating history may adversely affect business performance: The company has a limited operating history in manufacturing. Established in year 2020, it started manufacturing operation from year 2021 onwards. Certain of its competitors may have a longer operating history and more experience to it in the businesses in which it operates. It may be unable to understand the nuances of the industry given its short operating history, particularly demand and supply trends and customer trends. In the event it fails to understand the market operations and risks in connection with such operations, it may have an adverse impact on its business, prospects, financial condition and results of operations.

Key supplier dependency risk: The company’s top ten suppliers contribute 74.61%, 72.99%, 53.09% and 53.30% of its total purchase of the company for the period ended March 31, 2023, March 31, 2024, March 31, 2025 and stub period ending August 31, 2025 respectively based on restated financial statement. It cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of material and ultimately its revenue and results of operations.

Outlook

Aritas Vinyl is engaged in the manufacturing and trading of technical textile, such as Artificial leather also known as PU Synthetic leather and PVC-coated leather, using the latest technology known as Transfer Coating Technology. The company has fully integrated manufacturing plant set up at a strategic location. On the concern side, the company is dependent on a few suppliers for purchases of product/service. The loss of any of these large suppliers may affect its business operations adversely. Moreover, the company’s business depends on its manufacturing facility and the loss of or shutdown of its manufacturing unit on any grounds could adversely affect its business or results of operations.

The company is coming out with a maiden IPO of 79,83,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 40-47 per equity share. The aggregate size of the offer is around Rs 31.93 crore to Rs 37.52 crore based on lower and upper price band respectively. On performance front, in the FY25, the company’s total revenue was Rs 9796.80 lakh, which is increased by 41.55% in compare to total revenue from operations of Rs 6920.94 lakh in FY24. Moreover, the company reported 2.5-fold rise in net profit at Rs 413.25 lakh in FY25 as compared to Rs 166.50 lakh in FY24.

The company will continue to focus on expanding its operations and improving operational effectiveness at its production facilities. Improved operational efficiency leads to higher production volumes and increased sales, enabling it to distribute fixed costs over a larger number of products sold, thereby boosting profit margins. The company has decided to allocate the proceeds from the issue toward installing a ground-mounted solar power plant. By utilizing alternate sources of energy will help it to reduce its annual energy costs, directly contributing to profitability and strengthening its financial performance. It continues to focus on investing in automation, modern technology and equipment to continually upgrade its products including the quality of its products to address changing customer preferences as well as to improve operational efficiency.