**Current Status:** Operational Transition / Asset Liquidation **Headquarters:** Hisar, Haryana **Listing:** Indian Stock Exchanges (BSE) --- ### **Executive Summary: A Strategic Pivot Amidst Operational Cessation** Arcee Industries Limited is currently undergoing a fundamental structural transformation. Historically a manufacturer of **Rigid PVC Pipes** and **Steel Pipes (M.S. Tubes)**, the company has ceased all manufacturing activities as of **January 2026**. Facing severe capital constraints and operational non-viability, the company is executing a dual-track strategy: liquidating legacy industrial assets to settle outstanding liabilities while simultaneously raising fresh capital through convertible securities to pivot toward a new business model. --- ### **Operational Status and Segment Decommissioning** The company’s traditional business model has shifted from active production to asset divestment. Management has officially reported **Nil production** across all verticals. | Segment | Historical Role | Current Status | Key Developments | |:---|:---|:---|:---| | **M.S. Tubes / Steel Pipes** | Primary revenue driver (**85.5%** of turnover in FY23) | **Discontinued** | Commercial production began in **January 2021** via a 10-year lease. The lease was cancelled on **May 22, 2023**, due to continuous losses. | | **Rigid PVC Pipes & Fittings** | Secondary business vertical (**14.5%** of turnover in FY23) | **Inactive** | Production halted due to a lack of working capital and **technological obsolescence** of existing machinery. | **Key Operational Data:** * **Manufacturing Cessation:** There are currently **no production activities**. The company failed to secure the necessary working capital required to restart PVC production. * **Sales Volume Collapse:** Total sales plummeted from over **3,300 MT** in FY 2022-23 to just **40 MT** of Steel Pipe (and **Nil** PVC Pipe) in the subsequent period. * **Geographic Concentration:** Historically, **100%** of revenue was derived from domestic customers within **India**, with no export footprint. --- ### **Asset Monetization and Liability Management** To address mounting pressure from creditors and mitigate the risk of legal action, the Board has initiated a comprehensive liquidation of its physical infrastructure at its primary site: **7 K.M. Barwala Road, Talwandi Rana, Hisar, Haryana**. * **Steel Pipes Unit:** During the **second quarter of FY 2025-26**, the company sold its entire fixed assets, plant, and machinery related to this unit. * **Real Estate Divestment:** The Board is seeking shareholder approval via **Special Resolution** to sell the company’s immovable property, specifically the **Land and Shed & Building** (measuring **13 kanal 1 marle**). * **Debt Settlement:** Proceeds from these sales are being strictly utilized to pay outstanding dues to raw material suppliers and other creditors. * **Recovery Challenges:** The company is struggling to recover **security deposits** and **earnest money** held by **Government Departments**, as well as outstanding **advances to suppliers**. --- ### **Capital Restructuring and Growth Funding** Despite the cessation of manufacturing, Arcee Industries is attempting a financial reset through a substantial fund-raising exercise aimed at non-promoter investors. * **Preferential Warrant Issue:** The company is issuing **2,15,00,000 convertible warrants** at a price of **₹10.35** per unit (Face Value: **₹10.00**; Premium: **₹0.35**). * **Total Capital Target:** Estimated proceeds of approximately **₹22.25 crore**. * **Conversion Terms:** Warrants are convertible into equity shares on a **1:1 basis** within **18 months**. * **Authorized Capital Expansion:** Proposed increase from **₹10 crore** to **₹30 crore** to facilitate this issuance. * **Leadership Change:** **Mr. Gautam Sharma** was appointed as **Additional Director (Executive Category)** on **January 29, 2026**, to oversee this transition. **Proposed Utilization of New Funds:** * **Working Capital:** **₹14.00 crore** * **Brand Visibility & Development:** **₹6.00 crore** * **General Corporate Purposes:** **₹3.28 crore** --- ### **Financial Performance Trends** The company’s financial health has deteriorated significantly over the last three fiscal cycles, characterized by shrinking revenue and widening deficits. | Metric (Rs. in Lacs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **15.25** | **107.00** | **2,136.12** | | **Net Profit / (Loss)** | **(13.37)** | **(72.50)** | **(121.22)** | | **Reserves & Surplus** | **(162.18)** | **(148.80)** | **(76.30)** | | **Earnings Per Share (Rs.)** | **(0.26)** | **(1.41)** | **(2.36)** | * **Dividend Policy:** No dividends have been recommended for the last three years due to sustained losses. * **Net Worth:** The company continues to report **negative Reserves and Surplus**, with no transfers made to general reserves. --- ### **Critical Risk Factors and Going Concern Uncertainties** Investors should note several high-impact risks that threaten the company’s viability: * **Going Concern Doubt:** Auditors have explicitly highlighted material uncertainties regarding the company’s ability to continue as a **going concern**. * **Liquidity Paralysis:** The company has been unable to secure **term loans** or **credit facilities** from banks, leading to a total reliance on asset sales and preferential issues. * **Technological Obsolescence:** The existing PVC machinery is **outdated and inefficient**. Any resumption of manufacturing would require a total replacement with **new technology-based plant and machinery**. * **Creditor Hostility:** Management has described the sale of land as "inevitable" to satisfy creditors who have threatened **imminent legal action**. * **Associate Entity Shifts:** The company maintains interests in **Kruti Pipes Limited** (which recently pivoted from an **NBFC** to manufacturing), **Arcee Ispat Udyog Private Limited**, and **Alexis Marketing LLP**. The performance of these associates may impact the parent's broader strategic outlook.