### **Overview** Active Clothing Co. Ltd. (ACCL) is a fully integrated, India-based apparel manufacturer and FMCG distribution company headquartered in Mohali, Punjab. Over its 25-year journey, ACCL has evolved into one of India’s leading **design-to-retail** apparel solution providers, offering end-to-end services including design, prototyping, manufacturing, quality control, logistics, and retail marketing. The company operates a single, state-of-the-art, vertically integrated facility in Fatehgarh Sahib with an annual production capacity of **46.5 lakh garments**, supporting fast turnaround times, strict quality control, and efficient order management. --- ### **Core Business & Product Portfolio** ACCL specializes in high-quality garment manufacturing across multiple categories: - **Flat-knitted sweaters** (among India’s largest producers, with 352 SHIMA SEIKI, STOLL & KAUO HENG computerized machines) - **Circular-knitted apparel**: T-shirts, sweatshirts, and athleisure wear - **Outerwear**: Polyester quilted, washed-down cotton, over-dye, and wool jackets (supported by 500+ dedicated machines) - **Woven garments**: Expanding into women’s wear and kidswear tops - **Flyknit shoe uppers**: Primarily for Adidas (75% of upper capacity), with ongoing development for Puma, Skechers, Reebok, and US Polo - **Diversified products**: Knitted beanies, gloves, soft toys, and accessories The company has strategically diversified into **new product lines and softline wovens**, strengthening its position as a **one-stop apparel partner** for global fashion brands. --- ### **Client Portfolio & Market Reach** ACCL serves a prestigious list of **global fashion brands**, including: - **Levi’s** (key strategic partner; 22-year relationship; design-to-store process; largest marketing partner in North India) - **Adidas** (patented flyknit upper designs; import substitution under Make in India) - **Bestseller** (Jack & Jones, Vero Moda, ONLY) - **Tchibo** (single-source supplier for infant wear; €750K sales in 2 years) - **Puma, Skechers, Next, Ted Baker, TJ Maxx, Pepe Jeans, Celio, Arrow, Nike, Flying Machine** The company operates: - A **multi-brand retail network** of 7 stores in Punjab - Marketing partnerships for **200+ dealer outlets**, expanding to **300** for broader pan-India reach - Distribution rights for **Arvind Lifestyle brands** (Flying Machine, Arrow) and **Being Human, Rare Rabbit, John Player** --- ### **Technology & Innovation (Industry 4.0)** ACCL is building a **tech-enabled ecosystem** to drive efficiency, sustainability, and innovation: - **AI-Driven Design**: AI-powered tools for creative development and trend forecasting - **3D & Virtual Sampling**: Pantone-calibrated digital design for remote collaboration with global brands (UK, USA) - **Virtual Design Development Center**: Enables real-time co-creation, reduces sampling waste and turnaround time - **Smart Manufacturing**: - Automated cutting and sewing - ERP upgrades, predictive demand forecasting, AI-powered merchandising - In-house R&D in dyeing, embroidery, and finishing for premium, high-margin products - **Sustainability Initiatives**: - 500 kW rooftop solar plant (meets **50% of energy needs**) - Use of **organic cotton, RWS wool, recycled yarns, and BCI-certified cotton** - **Zero-waste production** and water-saving dyeing techniques --- ### **Knit to Shape Smart Factory – A Milestone (Jul–Nov 2025)** In a landmark development, ACCL has launched **India’s first ‘Knit to Shape’ Smart Knitting Factory** through a strategic partnership with **Ningbo Cixing Co., Ltd.** (world’s largest manufacturer of flat-knitting machines). Key highlights: - Investment: **600 next-gen computerized flat knitting machines** added to existing 352 (total fleet: ~952) - Technology: **3D seamless knitting, automation, zero-waste production** - Benefits: - Faster design validation and production - Higher customization, design flexibility, and consistency - Reduced material waste and improved sustainability - Outcome: Positions ACCL as a leader in **intelligent, sustainable sweater manufacturing** and strengthens India’s role in global fashion manufacturing --- ### **Financial & Operational Highlights** - **Cash Credit Interest Rate**: 7.85% - **Cash Conversion Cycle**: 200–220 days (due to 90–120 day production cycles and extended credit periods to brands) - **CRISIL Ratings**: **BBB (stable)** for long-term, **A3+** for short-term debt – reflecting strong financial discipline - **Fundraising (Mar 2025)**: Preferential allotment of warrants to fund capex and operational scaling - **Investment Plan**: ₹500 crore over 3 years for expansion and automation --- ### **Sustainability & Compliance** ACCL is committed to ethical and sustainable practices, evidenced by multiple global certifications: - **GOTS, BCI, SA8000, WRAP, SEDEX-4 PILLAR, GRS, Higg Index** - All processes conducted **in-house** (no outsourcing) to ensure strict brand compliance in labor, safety, and environmental standards --- ### **Leadership & Management** - Transitioned from **founder-led to professional management** - Focus on higher value-added products has increased wage-related cost components, but improved margins and brand positioning - Strong R&D and design team at **Art Active Design Center**, contributing to larger orders and improved overhead absorption --- ### **Key Differentiators** 1. **Only Indian company offering a complete “design-to-retail” model** 2. **End-to-end in-house control** from yarn to finished product 3. **Tech-first approach** combining AI, 3D design, and automation 4. **Sustainability leadership** with zero-waste initiatives and renewable energy 5. **Strategic partnerships** with global giants (Adidas, Levi’s, Tchibo, Bestseller) reinforcing trust and scalability