Technocraft Industries will discontinue its Murbad fabric manufacturing operations by July 2026 due to persistent losses. The move aims to improve overall margins by exiting a structurally weak segment.
Technocraft Industries to Discontinue Fabric Division
Technocraft Industries (India) Ltd. announced it will cease operations of its Fabric Division in Murbad, Thane, by July 20, 2026. This decision stems from prolonged adverse market conditions and consistent losses over the last three fiscal years. ## What just happened The company will stop manufacturing at its Fabric Division due to ongoing losses. ## Why this matters This closure is a strategic move to cut recurring losses and improve the company's overall financial health and margins. Reader Takeaway: Proactive exit from loss-making segment boosts potential for improved margins and bottom-line. ## What changes now The Fabric Division will no longer be reported in the company's standalone financial statements. However, core operations in the Garment and Yarn divisions will continue unaffected. The Garment business will operate through Technocraft Fashions Limited, with facilities in Amravati and Betul. The Yarn Division, utilizing 31,000 spindles in Amravati, remains with Technocraft Industries and its subsidiary, Technocraft Textiles Limited. ## The backstory The Fabric Division has reported significant losses for the past three fiscal years. Turnover for the division was ₹125.83 crore in FY26, ₹172.84 crore in FY25, and ₹161.65 crore in FY24. The loss after depreciation and before tax stood at ₹2.86 crore in FY26, ₹6.23 crore in FY25, and ₹10.73 crore in FY24. ## Risks to watch Investors should monitor the company's ability to maintain growth and profitability in its continuing Garment and Yarn segments following the fabric division's closure.
