Acknit Industries Limited is a diversified Indian manufacturer and exporter with over **three decades** of operational history. Originally established as a specialist in industrial glove manufacturing, the company has evolved into a multi-disciplinary provider of **Personal Protective Equipment (PPE)**, industrial apparel, and consumer garments. With a robust export orientation and a strategic pivot toward high-growth non-conventional safety segments, the company maintains a strong manufacturing footprint in **West Bengal** and a commercial power presence in **Maharashtra**. --- ### **Core Business Segments and Revenue Contribution** The company’s operations are categorized into four distinct reportable segments. While traditional hand protection remains the primary revenue driver, the "Other & Traded Items" segment is emerging as a high-margin growth engine. | Segment | Primary Activities | FY 2023-24 Revenue (₹ Cr) | FY 2022-23 Revenue (₹ Cr) | |:---|:---|:---|:---| | **Industrial Hand Gloves** | Manufacturing of leather, cotton, synthetic, coated, and dotted gloves. | **126.06** | **147.10** | | **Garments** | Industrial safety garments and readymade garments (including children's wear). | **73.11** | **80.91** | | **Other & Traded Items** | Procurement and supply of non-conventional safety gears and leather goods. | **21.31** | **10.07** | | **Power Generation** | Operation of wind mills in Dhule, Maharashtra. | **0.43** | **0.39** | | **Total Revenue** | | **220.91** | **238.54** | --- ### **Strategic Expansion and Infrastructure Roadmap** Acknit is currently executing an aggressive capacity expansion strategy to transition from a niche glove maker to a comprehensive PPE powerhouse. In **December 2025**, the company amended its **Memorandum of Association (MOA)** to facilitate entry into larger-scale operations and new profitable business lines. **Key Manufacturing Developments:** * **Jhautala, Barasat:** New facility inaugurated in **February 2022** focusing on industrial and readymade garments. * **Mouza Gopalpur, Chandigarh (WB):** A new facility inaugurated in **February 2026**; commercial production timelines are currently being finalized. * **Falta Sector III:** Active expansion initiated for PPE and hand glove production. * **Kolkata Leather Complex:** Allotted **5,000 Sq. m.** for leather goods and allied industries. * **Banipur Textile Park:** Land procured from **WBSIDCL** for future strategic use. * **Operational Optimization:** In **October 2025**, the Board approved the closure of specific underperforming operations within **Unit-1 of the Falta SEZ** to improve overall corporate viability. --- ### **Product Innovation and R&D Framework** The company maintains its market edge through a dedicated **Research & Development** department focused on **technology absorption** and "import substitution." While R&D costs are integrated into general expenditure heads rather than reported as a standalone line item, the department's mandates include: * **Process Engineering:** Optimizing **yields**, **fuel consumption**, and **energy saving** to reduce the cost of production. * **Sustainability:** Researching the **recycling of waste** and the utilization of manufacturing by-products. * **Quality Benchmarking:** Refining process technology to ensure outputs meet rigorous **international specifications**. * **New Product Development:** Expanding the portfolio into **helmets**, **industrial shoes**, and advanced **coated gloves**. --- ### **Financial Health and Capital Allocation** Acknit maintains a conservative and highly liquid balance sheet, characterized by negligible long-term debt and consistent dividend payouts. **Solvency and Liquidity (as of FY 2023-24):** * **Current Assets vs. Liabilities:** **₹113.98 Crore** in assets against **₹74.30 Crore** in liabilities, indicating a healthy liquidity ratio. * **Debt Profile:** Total borrowings were reduced to **₹15.84 Lakhs** (down from ₹23.87 Lakhs), with non-current liabilities due after three years standing at a minimal **₹3.73 Lakhs**. * **Shareholder Returns:** The Board recommended a dividend of **₹1.50 per equity share (15%)** for FY 2023-24, totaling a **₹45.60 Lakhs** payout. * **Reserves:** Proposed transfer of **₹6 Crore** to the General Reserve, with **₹9.36 Crore** in retained earnings carried forward. **Credit Ratings (Re-affirmed March 2025):** * **Long-term Rating:** **[ICRA] BBB (Stable)** * **Short-term Rating:** **[ICRA] A3+** * **Total Rated Facilities:** **₹67.32 Crore** --- ### **The "Non-Conventional" Growth Engine** The **Other & Traded Items (Non-Conventional)** segment has demonstrated exceptional momentum, transitioning from a nascent venture to a significant profit contributor: * **Revenue Growth:** Surged from **₹10.07 Crore** to **₹21.06 Crore** year-on-year. * **Profitability Leap:** Segment profits rose from **₹8.76 Lakhs** to **₹77.70 Lakhs**. * **Strategic Outlook:** Management views this segment as having "immense prospects" following successful viability studies and organized scaling. --- ### **Risk Mitigation and Global Exposure** As an export-heavy entity, Acknit is exposed to significant external volatility, which it manages through a system-based risk framework. **1. Currency and Hedging:** The company has substantial exposure to the **USD** and **Euro**. To mitigate this, it engages in active **hedging processes** using forward exchange contracts. * **Outstanding Sell Contracts (March 2024):** **$48.99 Million** and **€26.88 Million**. * **Valuation:** Financial instruments are valued using **Level 2** inputs (market observable data). **2. Geopolitical and Logistical Risks:** * **Red Sea Crisis:** Diversion of shipments via the **Cape of Good Hope** has increased transportation costs and lead times. * **Global Conflicts:** The **Russia-Ukraine** and **Israel-Hamas** wars continue to fragment supply chains. * **Currency Volatility:** The **Indian Rupee (INR)** reaching lows of **83 per USD** impacts import costs for raw materials. **3. Operational Risks:** * **Wind Power Viability:** The company is evaluating the future of its power segment as **windmill lifespans are nearing expiration** (as of Feb 2026). * **Related Party Transactions:** Strategic procurement is managed through arm's-length contracts, such as the **₹5 Crore** annual agreement with **Safewell Industries** for capital goods and distribution. * **Labor and Compliance:** Ongoing focus on retaining skilled human capital and managing **Direct/Indirect Tax** litigations. --- ### **Governance and Leadership** The company ensures management continuity through the re-appointment of **Mr. Shri Krishan Saraf** as **Managing Director** for a 3-year term (April 2024 – March 2027). Oversight is further strengthened by the appointment of **Rekha Goenka & Associates** as Secretarial Auditors for a five-year tenure through **FY 2029-30**. The company also utilizes the **Export Promotion Capital Goods (EPCG) Scheme**, having successfully fulfilled export obligations of **USD 5.46 lacs**.