India’s Largest Textile Company: Who Leads the Market?

Quick Take

• Arvind Limited tops the Indian textile sector by revenue and production capacity.
• Annual turnover in FY 2023‑24 crossed ₹15,300 crore.
• Key strengths: diversified product mix, strong export network, sustainability drive.
• Closest rivals - Vardhman Textiles, Raymond Ltd, Welspun India - trail by 15‑30%.
• Growth outlook hinges on tech‑enabled manufacturing and eco‑friendly fabrics.

When you ask “who is the biggest textile company in India?” the answer isn’t a mystery any more - it’s Arvind Limited. The Ahmedabad‑based giant has outpaced its peers on every measurable front, from top‑line revenue to global footprint. Below we’ll unpack why Arvind wears the crown, how it got there, and what the showdown looks like for the other heavy‑hitters.

Understanding the Indian Textile Landscape

The Indian textile industry is a multi‑billion‑dollar ecosystem that employs over 45million people, according to the Ministry of Textiles. It spans raw fibre production, yarn manufacturing, fabric weaving, garment making and export logistics. In FY2023‑24 the sector contributed roughly 2.5% to India’s GDP and earned close to $45billion in foreign exchange earnings.

Key sub‑segments include cotton textiles, man‑made fibres (MMF), silk, woolen and technical textiles. While cotton still dominates (about 55% of total output), the surge in demand for engineered fabrics - used in automotive, medical and sports applications - is reshaping the competitive map.

Meet the Market Leader: Arvind Limited

Arvind Limited is a publicly listed textile conglomerate headquartered in Ahmedabad, Gujarat. Founded in 1931, the company started as a cotton‑spinning mill and now spans denim, woven fabrics, knitwear, technical textiles and advanced engineering composites.

Key attributes (FY2023‑24):

• Revenue: ₹15,300crore (≈ $185million USD)
• Net profit: ₹1,210crore
• Employees: ~31,000
• Export share: 38% of total sales
• Production capacity: 1.2million tonnes of fabric per year

Arvind holds a 12% market share in Indian denim, the segment that accounts for roughly 35% of its earnings. Its diversified portfolio cushions the business against cyclicality in any single fibre type.

How Arvind Became the Biggest

Several strategic moves over the past two decades turned Arvind into the industry heavyweight:

1. Capacity expansion: Between 2010 and 2022 the company added over 600MW of loom capacity, including state‑of‑the‑art warp‑knit and flat‑bed looms that boost productivity by 20‑30%.
2. Acquisitions: The purchase of Denim Werk in 2015 gave Arvind a foothold in the European premium denim market. In 2019 it bought a 51% stake in Burlington Fabric, expanding its technical textile line.
3. Brand partnerships: Long‑term contracts with Levi’s, Gap and H&M guarantee a steady demand for high‑quality denim, while collaborations with Tata Steel and Mahindra &Mahindra feed its engineered‑fabric division.
4. Sustainability drive: Arvind pioneered the ‘Zero‑Discharge’ water‑treatment plant at its Naroda complex, cutting freshwater use by 40% and earning the IS014001 certification.
5. Digital tooling: The company’s ‘ArvindSmart‑Factory’ initiative uses IoT sensors and AI‑based demand forecasting, reducing order‑to‑delivery lead time from 30days to under 12days.

These pillars - scale, diversification, brand tie‑ups, green tech and digitalization - collectively built the moat that kept competitors trailing.

Who’s Running Close Behind?

Vardhman Textiles, founded in 1965, remains the second‑largest yarn and fabric producer, but its revenue lags Arvind by roughly 20%. Raymond, famous for suiting fabrics, focuses on premium woven garments and therefore operates at a smaller scale. Welspun, while leading the home‑textile segment, doesn’t match Arvind’s breadth across denim, technical fabrics and apparel‑grade woven textiles.

What Sets Arvind Apart?

Product breadth. While many peers specialize - Vardhman in yarn, Raymond in suiting, Welspun in home textiles - Arvind covers the whole spectrum, from raw cotton yarn to finished garments and high‑performance composites. This multi‑layered approach lets it capture value at each step of the supply chain.

Export prowess. With 38% of sales shipped abroad, Arvind ranks among the top five Indian exporters of fabrics. Key markets include the United States, EU, and Southeast Asia. The company’s compliance with global standards (OEKO‑Tex, GOTS) opens doors to premium retailers.

Innovation labs. The ‘A‑Lab’ in Ahmedabad runs over 30 R&D projects, ranging from bio‑based dyes to wear‑able sensors woven into denim. In 2024 the lab filed 12 patents, a record for any Indian textile house.

Sustainability metrics. Apart from water‑reduction, Arvind’s cotton sourcing is 65% organic. Its carbon‑footprint per tonne of fabric dropped 22% between 2020 and 2024, earning inclusion in the MSCI ESG Leaders Index.

Implications for Different Stakeholders

Investors: The steady dividend yield (≈2.1% in FY2023‑24) and a forward‑looking EPS growth outlook of 12‑15% make Arvind a relatively safe play in a sector known for price volatility.

Job‑seekers: The company’s focus on digital‑upskilling means a surge in demand for data analysts, automation engineers and sustainability auditors. Entry‑level positions now often list ‘basic Python’ or ‘ISO‑14001 awareness’ as prerequisites.

Suppliers: Small‑scale cotton growers benefit from Arvind’s “Direct‑Purchase” program, which guarantees a 5% price premium over market rates, provided quality standards are met.

Policy‑makers: Arvind’s success story illustrates the payoff of aligning industry incentives with green technology subsidies - a model that could be replicated across other manufacturing clusters.

Future Outlook - Where Is the Biggest Going?

Looking ahead to 2026‑30, Arvind aims to breach the ₹20,000crore revenue mark by expanding its technical‑textile arm. Plans include a joint venture with a German polymer firm to produce carbon‑fiber composites for the automotive sector.

Potential headwinds involve raw‑material price spikes (cotton, polyester) and geopolitical trade barriers. However, the company’s diversified product mix and robust export corridors cushion the impact.

Another trend to watch is the rise of “smart textiles.” Arvind’s pilot line for RFID‑enabled workwear is already supplying logistics firms in Mumbai, hinting at a new revenue stream that could further widen the gap between it and the rest of the pack.