Usha Yarns Limited (“Usha Yarns”), a producer of high-quality recycled yarns with advanced, well established production processes, has announced a growth equity investment from the Fullerton Carbon Action Fund (“Fullerton”), a private equity strategy managed by Fullerton Fund Management that backs established mid-market companies across Emerging Asia to accelerate decarbonisation.
Founded in 1995 and operating recycling and yarn manufacturing units near Chandigarh, Usha Yarns converts post-industrial cotton and recycled PET into yarns sold under its “Puneh” brand. Pre-coloured at the recycling stage, its yarns help customers reduce downstream dyeing costs, while its chain-of-custody and sustainability credentials — validated against several global certifications and benchmarks — align with the circularity and traceability standards that global apparel brands increasingly require.
The investment will support Usha Yarns’ next stage of scale up — expanding recycled yarn capacity, deepening the traceability of its feedstock sourcing, and broadening its supply of high-quality recycled yarns to apparel and textile brands across global markets.
Recycled yarns with verified traceability are fast becoming a supply chain imperative for global apparel brands — and Usha Yarns is one of the few producers already operating at that standard.
“Over more than two decades we have built deep expertise in turning textile waste into high-quality, affordable recycled yarns,” said Anurag Gupta, Managing Director of Usha Yarns. “Fullerton understood our business from the first conversation — not just the financials, but what it actually takes to produce recycled yarn at consistent quality and scale. We look forward to building the next chapter of Usha Yarns together — taking our products to more brands across global markets, with the traceability and reliability they increasingly expect.”
“Mechanical cotton recycling at consistent, brand-grade quality is one of the hardest things to do in textiles, and Usha Yarns is among the very few that have demonstrated it, at scale.
As global brands move from sustainability pledges to binding requirements, demand for recycled materials will outpace supply — and our role is to help Usha scale to meet it, adding capacity, broadening the product range and customer base, and backing the promoters with long-term capital, capabilities and networks to build an enduring, institutional-grade business,” said Akhil Jain, Partner at Fullerton Carbon Action Fund.
