Suditi Industries eyes growth with GST tailwind and Gini & Jony momentum

Suditi Industries Ltd. announced that the company is entering a new phase of growth, powered by favorable GST revisions and strong momentum from its recently acquired kidswear brand, Gini & Jony.

In its press release the company shared, “Unlike peers heavily dependent on exports, Suditi’s domestic-first focus shields it from tariff volatility abroad. With global supply chains realigning, Indian brands are gaining prominence, creating fresh opportunities for Gini & Jony to expand its consumer base and strengthen brand loyalty.”

The anticipated reduction of GST on apparel from 12% to 5% is expected to provide a twofold boost:

Stronger Consumption: Lower taxes are likely to fuel festive season demand, benefitting both Suditi’s mill operations and retail presence.

Improved Margins: Reduced tax outflow will lift profitability, providing flexibility for reinvestment and expansion.

Market Re-Rating Reflects Confidence

Since Suditi’s acquisition of Gini & Jony in November 2024, the company’s market capitalization has surged from ₹54.5 crore to nearly ₹250 crore, underscoring investor conviction in its growth strategy.

Management has outlined a clear roadmap for Gini & Jony to become a profitable growth engine by FY26, with targeted EBITDA margins of 7–8%.

Over the next five years, turnover potential is projected at ₹700–800 crore. Suditi’s manufacturing strength, with daily capacity exceeding 100,000 garments, ensures the company is well-prepared to meet this demand.

Harsh Agarwal, CEO of Gini & Jony, said: “This is a pivotal time for Suditi. With the integration of Gini & Jony, we are no longer just a textile manufacturer—we are transforming into a consumer-facing retail powerhouse. The upcoming GST reforms and strengthening domestic consumption create a strong runway for growth. We are confident of delivering value to our customers, investors, and all stakeholders as we build one of India’s most trusted kidswear businesses.”