AHMEDABAD, India — May 6, 2026 — Arvind Advanced Materials Limited (“AAML”), a wholly owned subsidiary of Arvind Limited, today announced the acquisition of nearly 61% stake in Dalco-GFT, a U.S.-based manufacturer of specialized needle-punched non-woven specialty fabrics. This acquisition reinforces Arvind’s strategy of leveraging its integrated supply chain and pursuing value-accretive opportunities to enhance resilience, expand partnerships, and respond to evolving global trade dynamics.
Arvind Advanced Materials Ltd
AAML operates a scaled advanced materials platform with supply leadership positions across many critical sectors such as, protective gear, renewable energy, mass mobility, industrial filters and belting and is backed by Arvind Group’s century-long heritage in manufacturing of textiles, capital goods and Industrial materials.
AAML is almost two decades old and an innovation driven product portfolio with deep vertical integration spanning materials, processing, and finished products having cost leadership, and margin resilience.
It currently operates three distinct verticals i.e., Human Protection, Composites, and Industrial Application and has achieved a Revenue CAGR of 23% over the past five years with a consistent margin of ~15%.
Dalco–GFT
Dalco-GFT was established in 1988 and has a proven track record of four decades. It delivered specialized needle-punched non-woven tech-textile solutions across sectors including Automotive, Industrial, Construction and Furniture & Furnishing.
- Dalco-GFT has two manufacturing units based in North and South Carolina, USA with a combined annual capacity of producing ~75 Mn Lbs.
- Dalco-GFT has reported a top line CAGR of 10% in the past six years and margin improvement of 100 bps.
- In CY25, Dalco-GFT reported a top-line of ~$100 Mn and EBITDA margin of ~17%, with ~40% ROCE and 95% cash conversion ratio.
The acquisition is expected to accelerate Arvind Advanced Material’s global footprint and reduce supply chain risk while unlocking the following strategic synergies:
- Access to a massive TAM [USA] $2.5Bn across all four segments
- Needle-punch non-wovens are adjacent to AAML’s industrial products & filtration capabilities, reducing technology risk versus unrelated diversification
- Expands customer base by 75+ active customers and 88% sole-source position
- Addition of three sectors (Automotive, Furniture & Furnishing and Construction) to existing profile
- AAML’s established business will get more customers through cross sourcing
Commenting on the acquisition, Mr. Punit Lalbhai, Vice Chairman of Arvind Limited, said, “The acquisition of Dalco-GFT marks a transformational milestone in AAML’s growth journey. Through this transaction, we are entering the world’s largest technical textile market—the United States—through a platform that is both technologically aligned and operationally strong. The continued participation of the existing shareholders, who will retain a ~39% stake, reflects strong alignment and confidence in the future of the business. This acquisition is highly synergistic and will accelerate our growth ambitions of 18–20% through cross-sourcing and technology integration.”
“Our customers can expect the same great service, relationships, and product quality they’ve always known — and we’re excited about what this transaction makes possible for them going forward.” said Mr. Joey Duncan, Chief Executive Officer of Dalco-GFT. “Our team remains fully committed to serving our customers with the same responsiveness and reliability they have come to expect. With AAML as the parent, we will be even better positioned to strengthen our operations, enhance our capabilities, and accelerate growth and innovation for the benefit of our customers. I am also excited to continue leading Dalco-GFT under AAML’s ownership and look forward to working together with Mr. Punit Lalbhai and team to build on the company’s strong foundation and pursue its next phase of growth.”
Transaction Structure, Valuation and Leverage:
- AAML has acquired ~61% stake in the Dalco-GFT with Management Control, which is valued at 7.75x EV/EBITDA (CY25) amounting to $136 Mn.
- The existing top management are fully aligned with the vision of taking the journey together, while AAML intends to acquire the remaining stake from rollover shareholders in 4 years.
- This deal is both Margin & EPS accretive from year one.
- The acquisition is currently financed through debt at Dalco-GFT & AAML levels. AAML is preparing a medium-term plan with a focus on growth momentum while delivering on our philosophy of deleveraging over the next few years.
- Financial ratios remain well within acceptable bounds even at peak debt levels post-transaction.
InCred Capital acted as the exclusive financial advisor to AAML on the transaction. “This deal represents a landmark for our client both in terms of gaining meaningful scale and entering a new geography. We are grateful to have played a small role in this successful transaction and wish AAML all the best on its expansion in the United States” said Ashish Ambwani, Managing Director at InCred Capital.
AAML extend its sincere appreciation to our advisors, legal counsels, auditors, bankers, and regulatory authorities for their support in the timely completion of this transaction.
This acquisition signifies Arvind’s continued commitment to its core principles of disciplined growth, strategic partnerships, and responsible decision-making. Anchored in its long-standing value system, the Company remains focused on delivering sustainable, long-term value to all stakeholders.
Posted: May 7, 2026
Source: Arvind Ltd.