India invests in circular yarn production

Category: YARNS

Country: India

Region: South Asia

By Kirstin Linnenkoper
Business news @ Recycling International
29th August, 2025

Yarn producer Filatex India is investing EUR 29 million to establish a 75-tonne-per-day polyester recycling plant. The facility will likely start operations in September 2026.

The company is also planning capacity expansion of around 150 tonnes in the next few years, along with renewable energy initiatives.

Filatex managing director Madhu Sudhan Bhageria comments: ‘We have developed and patented a technology to recycle textile waste into chips, which can then be spun into yarn. This is the solution the world is looking for.’

Polyester now accounts for nearly 70% of global fibre consumption. ‘Over the last 20 years, 95% of incremental textile demand has been met by man-made fibres,’ Bhageria says.

Filatex is a family-owned business, headquartered in New Delhi, with over 30 years of recycling experience. It holds around 8% of India’s polyester yarn market. The company processes 1000 tonnes of textiles daily, supplying customers in China, Korea, Thailand, Germany and Japan.

Sunny economics
India, home to 1.4 billion people, is experiencing steady economic growth. Market analysts expect GDP to reach EUR 3.4 trillion this year, with growth estimated at 6.7% in fiscal year 2025-26.

The nation’s recycling industry is currently worth over EUR 762 million, projected to exceed EUR 1.1 billion by 2030. This represents 8.5% compound annual growth from 2025 to 2030.

The textiles recycling segment generates almost EUR 285 million in annual revenue. India’s capacity to recycle polyester from bottles into textile materials is projected to surpass 1.6 million tonnes per annum by 2030, signalling a significant increase in recycling infrastructure.

Filatex underlines increasing demand in polyester use in sportswear and fast fashion makes polyester recycling an incredibly interesting market.

Courtesy: recyclinginternational.com