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Small Yarn Goods Company Equity Stake For Sale in Bengaluru, India

Green manufacturing business producing cottonised hemp fiber hemp-blend textiles from raw hemp for global markets.

Established 5-10 year(s)
Employees 2 - 5
Legal Entity Public Limited Company
Reported Sales USD 10 - 20 thousand
Run Rate Sales USD 10.8 thousand
EBITDA Margin Nil
Industries Textiles Wholesale + 1 more
Locations  Bengaluru
Local Time 7:37 AM Asia / Kolkata
Listed By Business Owner / Director
Status Moderately Active
Overall Rating
Partial Stake Sale
USD 1 million for 25.0% stake (Native Currency: USD 1,000,000)
Reason: The business has entered into a collaboration with a U. S. -based company and is currently supplying... View More
Includes physical assets worth USD 50 thousand
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Business Overview
- Green manufacturing focus: The business specializes in eco-friendly textile production, utilizing cottonized hemp fiber and hemp-blend textiles.

- Product offerings: Key products include cottonized hemp fiber, hemp-blended yarns, and woven/knitted fabrics intended for textile mills and apparel brands, making them ideal for sustainable apparel and home-textile applications.

- The company currently has a collaboration with a US-based company and is in the process of sending a commercial sample of 10 tons at a cost of INR 820 per kg. Actual commercial orders are expected to be received within the next three months.

- Target customers: The primary clientele includes textile mills, garment manufacturers, and sustainable material buyers in the USA, Europe, and India, all seeking to adopt eco-conscious solutions.

- Revenue generation: The business operates on a B2B revenue model, generating income through the sale of hemp products and contract processing services that enable international clients to convert raw hemp into market-ready textiles.

- Established partnerships: Engaged in lucrative collaborations with U. S. hemp companies, providing access to high-quality raw materials and creating a robust export pipeline.

- Market pipeline: Currently preparing for the shipment of commercial samples, with expectations of receiving actual orders in the next three months, underscoring strong market traction.

- Promoter expertise: An industry veteran with over 14 years of experience in research and commercialization, lending credibility and expertise to the business.

- Future expansion plans: With investment, the business aims to establish collaborations globally, enhance processing capabilities, and diversify product offerings to meet increasing demand for sustainable textiles.

These points encapsulate the essence of the business, highlighting its commitment to sustainability, market potential, and growth trajectory in the textiles industry.
Products & Services Overview
The business’s top-selling products include cottonised hemp fiber, hemp-blended yarns, and hemp-blended woven and knitted fabrics. These products are primarily used by textile mills, apparel brands, home-textile manufacturers, and sustainable material buyers in the USA, Europe, and India.
Cottonised hemp fiber is supplied to spinning mills for blending with cotton, viscose, lyocell, and recycled fibers to produce yarns. Hemp-blended yarns are used by fabric manufacturers to produce apparel, denim, home textiles, and technical textiles. Finished hemp-blended fabrics are purchased directly by brands and manufacturers for sustainable clothing, uniforms, upholstery, and eco-friendly textile applications.
In addition to products, the business offers contract processing and custom cottonisation services for international clients supplying raw hemp fiber, enabling them to convert fiber into market-ready textile intermediates without incurring additional trade tariffs.
Assets Overview
Tangible assets:
Small manufacturing factory plant in Bangalore.
4 decorticators, each costing INR 7 lakh (USD 7,800).
2 treatment tanks, each costing INR 5 lakh (USD 5,500).
Container vessel costing INR 30 thousand (USD 330).

Intangible assets:
GST certificate.
IP (Pending).
Promoter expertise & know-how.
Private limited entity.
International business relationships: 
Strategic collaboration with U. S. -based hemp fiber suppliers and ongoing relationships with international textile buyers and brands.
Market access & client pipeline: 
Active buyer discussions, export inquiries, and commercial negotiations for cottonized hemp fiber, blended yarns, and fabrics.
Process knowledge & SOPs: Quality standards and operating procedures for export-grade hemp textile intermediates.
Regulatory & trade understanding: 
Strong knowledge of import-export procedures, customs, compliance, and tariff-optimized cross-border manufacturing models.
Scalable business model: 
Asset-light sourcing combined with value-added processing in India, enabling high-margin exports and long-term scalability.

In addition to the existing asset, we have planned to acquire the following assets post-investment:
* Processing machinery (Planned): 
Hemp fiber opening, cleaning, chemical/enzymatic treatment systems, washing units, drying systems, cottonization lines, carding machines, and baling/packing equipment.
* Material handling & utilities (planned): 
Conveyors, forklifts, fiber storage racks, air handling systems, water treatment and recycling systems, power distribution infrastructure, and quality testing equipment.
* Inventory (operational phase): 
Imported raw hemp fiber, processed cottonized fiber, hemp-blended yarns, and fabric stock held for export and domestic dispatch.
* Office & factory infrastructure: 
Office furniture, IT hardware, ERP systems (when implemented), and factory utilities required for day-to-day operations.
Facilities Overview
Currently, we are operating from a 14,000 sq. ft. facility, which is a personally owned property.

The proposed facility will be an industrial-grade hemp fiber processing and cottonization unit with a built-up area of approximately 20,000–30,000 sq. ft. designed for efficient material flow from raw fiber intake to finished product dispatch. The facility will be a single-floor shed with high ceiling clearance, suitable for heavy textile machinery, fiber drying, carding, and packaging operations.

The unit is planned to be established in a leased industrial premises with provision for long-term lease (5–9 years) to support stable operations and future capacity expansion. The location will offer good port connectivity, power availability, water access, and compliance with export-oriented manufacturing requirements.
The layout allows for scalable expansion, including additional cottonization lines, yarn preparation, and fabric processing based on market demand.
Capitalization Overview
The business is self-funded by the promoters and has no outstanding loans or debt obligations.
The company has 4 directors and 4 additional shareholders, with the promoter and another director holding a majority stake of 90%.
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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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