- **Mahaalaxmi Texpro Ltd is a textile manufacturer that has just been rebuilt from the ground up - a company that went through insolvency, was bought at auction, and is now systematically selling off its original factories to reshape itself under new owners. It was founded as a cotton-spinning mill in Kolhapur, Maharashtra, expanded into weaving and fabric processing between 2005 and 2008, then collapsed into the Corporate Insolvency Resolution Process in 2017 and was eventually acquired as a going concern by Mahaalaxmi Textile, a partnership firm, in March 2024. The recurring approach is visible in every chapter: the new management takes control of a distressed asset, runs it on a job-work basis for predictable fees rather than speculative trading, and then sells the physical unit to a related party - clearing the slate for whatever comes next.** # Business segments Two engines, both textile manufacturing, but at opposite ends of the lifecycle - a spinning unit already sold, and a fabric-processing unit sold while still operating - each run for job-work income before being transferred to related parties. ## 1. Yarn manufacturing: the original mill, now sold **A 36,000-spindle cotton-spinning plant that the new owners operated on job work for three years, then sold to a third party for ₹7.35 Crores.** - **Built for combed cotton** - the unit was set up with 36,144 spindles dedicated to 100% combed cotton yarn, a higher-quality product where the short fibres are removed before spinning. - **Cotton is the cost driver** - raw cotton makes up roughly 60% of total manufacturing cost, and its price swings with the monsoon, so the company monitors cotton prices constantly but does not hedge on commodity exchanges. - **Earned fees, not trading margins** - the unit operated on a job-work basis, processing raw material supplied by customers and recognising revenue monthly based on production and dispatches, which insulated it from cotton-price risk. - **Sold after contributing half the business** - shareholders approved the sale of the spinning unit to Samosaran Yarns Pvt Limited on 25 February 2025 for a lump sum of approximately ₹7.35 Crores, after it had generated 53.94% of the company's turnover in the preceding financial year. ## 2. Fabric processing: the downstream unit, sold to a related party **A weaving, dyeing and finishing operation that the company ran on job work and then sold as a going concern to a firm controlled by its own managing director.** - **From yarn to finished fabric** - the company added yarn dyeing, weaving and fabric processing between 2005 and 2008, creating a composite operation that could produce dyed-yarn shirting fabric rather than just selling yarn. - **A larger site with room to process** - the fabric unit sits on 17 hectares of leasehold land with a 36,575-square-metre building housing the plant and machinery, separate from the spinning mill. - **Job work with a related-party anchor** - the unit earned revenue through job-work services, including a three-year agreement with Manibhadra Ploycot Pvt Limited worth ₹328 lakhs, a company where a director holds a majority stake. - **Slump sale to the CMD's other company** - on 25 February 2025, shareholders approved selling the fabric business to Girnar Spintex Industries Limited, where Mr. Deepak Choudhari and Mrs. Madhubala Choudhari both serve as directors, for ₹24.75 Crores on a slump-sale, going-concern basis, with the unit having contributed 46.06% of turnover. # Group structure and partners **A listed shell with no subsidiaries, controlled by a partnership firm that bought it out of liquidation and now holds 57.63%, while the original promoters' shares were cancelled entirely.** - **Acquired at auction by a textile partnership** - Mahaalaxmi Textile, a partnership firm already running a textile unit at the same Kolhapur site, won the e-auction on 13 September 2023 with a bid of ₹40.45 Crores and was issued 32,00,000 shares, giving it 94.97% of the post-restructuring capital. - **Old equity wiped out** - the previous promoters' 92.25 lakh shares were extinguished for nil consideration, and public shareholders had their holdings consolidated at a 40:1 ratio, leaving them with just 5.03% of the company after the restructuring. - **No subsidiaries, no joint ventures** - the company has no material subsidiaries or associates as of March 2025, making it a standalone entity with no complex group structure. - **Board and management are family-tied** - the six-member board is led by Chairman and Managing Director Mr. Deepak Choudhari; his son served as CFO without salary until April 2025 due to liquidity constraints, and the fabric business was sold to a company where both Mr. Choudhari and his wife are directors. - **Listed but suspended** - the company's shares trade on BSE and NSE, but trading has been suspended on both exchanges for extended periods due to non-compliance, and listing fees for FY25 remain unpaid because of liquidity problems.