- 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.