Chandigarh, India — Recycled yarn producer Usha Yarns Limited announced today that it has secured a growth equity investment from the Fullerton Carbon Action Fund. The fund is managed by Fullerton Fund Management and focuses on investing in medium-sized, mature companies in emerging Asia to accelerate their decarbonization.

Founded in 1995, Usha Yarns operates recycling and yarn production facilities near Chandigarh, converting post-industrial cotton waste and recycled PET into yarn sold under the "Puneh" brand. Its yarn is pre-dyed at the recycling stage, helping customers reduce downstream dyeing costs. At the same time, its chain of custody and sustainability credentials have been verified through multiple global certifications and benchmarks, meeting the circularity and traceability standards increasingly required by global apparel brands.

The investment will support Usha Yarns' next phase of expansion, including increasing recycled yarn capacity, deepening traceability in raw material sourcing, and scaling the supply of high-quality recycled yarn to apparel and textile brands in global markets.

Recycled yarn with verifiable traceability is rapidly becoming a supply chain necessity for global apparel brands, and Usha Yarns is one of the few producers that has already met this standard.

Anurag Gupta, Managing Director of Usha Yarns, said: "For more than two decades, we have built deep expertise in transforming textile waste into high-quality, affordable recycled yarn. Fullerton understood our business from the very first conversation — not only the financials, but also the practical essentials of producing recycled yarn with consistent quality and at scale. We look forward to writing the next chapter of Usha Yarns together, bringing our products to more brands around the world and meeting the traceability and reliability they increasingly expect."

Akhil Jain, Partner at Fullerton Carbon Action Fund, commented: "Mechanical cotton recycling at consistent, brand-grade quality is one of the hardest things in the textile industry, and Usha Yarns is one of the few companies that has proven it at scale. As global brands move from sustainability commitments to mandatory requirements, demand for recycled materials will outstrip supply. Our role is to help Usha scale to meet that demand, increase capacity, broaden its product line and customer base, and support the promoters with long-term capital, capabilities and networks to build a durable, institutional-grade business."

Source: Usha Yarns Secures Growth Equity Investment From Fullerton Carbon Action Fund · Originally published on 2026-08-18