India's engineered fabrics market is projected to grow from US$ 11.2B in FY26 to US$ 21.1B by FY31P, a 13.5% CAGR. That is ahead of the global market's projected 10.6% CAGR. The industry is shifting away from traditional textile production and towards high-performance, application-specific materials, opening up growth prospects in the automotive, industrial, defence and aerospace, outdoor, and leisure sectors
Kusumgar's IPO brings investor attention to this specialized segment of India's textile industry. Here, technical performance, customization and manufacturing know-how increasingly matter more than fabric volumes alone.
As the industry report partner for Kusumgar's IPO, 1Lattice market intelligence, through its capital markets offering 1Alpha, assessed the structural shifts shaping India's engineered fabrics opportunity. These range from rising demand for performance materials and integrated manufacturing capabilities to import substitution and global supply-chain diversification.
Key takeaways
- India's engineered fabrics market is expected to grow ~3 percentage points faster than the global market.
- Demand is shifting from standard fabric supply to application-specific, integrated solutions.
- Import substitution, China+1, and supply-chain diversification are opening global opportunities for Indian manufacturers.
- For companies going public, a growing market is only the starting point. Investors look for defensible capabilities and positioning.
Industry outlook: India is outpacing global engineered fabrics growth
The global engineered fabrics market is projected to grow from US$ 67.8B in CY25 to US$ 112.2B by CY30P, implying a 10.6% CAGR.
India is expected to grow faster, with its engineered fabrics market projected to expand from US$ 11.2B in FY26 to US$ 21.1B by FY31P, implying 13.5% CAGR
This growth gap lets domestic manufacturers participate in growing local demand and in evolving global supply chains.
Four shifts shaping the next phase of engineered fabrics growth
1. From conventional textiles to engineered performance
Demand is shifting toward lightweight, high-strength, abrasion-resistant, fire-retardant, and multifunctional fabrics. This raises the importance of technical performance alongside manufacturing scale.
2. From fabric supply to integrated solutions
Customers increasingly want application-specific solutions rather than standard fabric supply. That makes capabilities across weaving, finishing, coating, lamination, and fabrication more relevant.
3. From domestic manufacturing to global opportunity
Import substitution, China+1 and global supply-chain diversification are creating opportunities for Indian manufacturers to serve a wider set of domestic and international requirements.
4. From standard products to customized, defensible niches
Significant hurdles to entry in specialised applications can be created by technical expertise, application-specific R&D, certifications, and protracted qualification cycles.
What do investors look for in companies preparing for the capital markets?
A growing market is only the starting point. Investors increasingly need to understand five things:
From market sizing to investment-grade industry positioning
For Kusumgar, 1Lattice connected five elements: market evolution, end-use growth pools, technical capabilities, value-chain positioning and competitive dynamics.
The objective was to place Kusumgar within the structural evolution of India's engineered fabrics industry and to build an evidence-backed industry narrative for its capital markets journey.
How 1Alpha supports companies preparing to go public
1Alpha is 1Lattice's capital markets offering. It helps companies, bankers and investors move beyond market sizing to build evidence-backed, investor-ready industry narratives around market structure, growth opportunities, competitive dynamics and company positioning. Its work spans IPO and QIP industry reports and IPO readiness assessments.
Explore the Kusumgar engineered fabrics industry report: Kusumgar Limited RHP (SEBI)
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