Hindoostan Mills Limited is currently executing a definitive strategic pivot, transitioning from a legacy multi-segment conglomerate into a specialized, single-segment **Engineering** entity. This transformation follows the formal closure of its century-old textile operations, which had faced persistent financial headwinds. The company is now positioning itself as a high-precision industrial partner, leveraging its **ECK Haubold & Laxmi (EHL)** brand to capture value in diversified manufacturing sectors. --- ### Strategic Pivot: Exit from Legacy Textile Operations After more than **five years** of continuous losses and a sharp decline in demand exacerbated by global economic conditions, the Board of Directors resolved to permanently close the Textile Division. * **Closure Timeline:** Production ceased in **October 2024**. The formal closure order under **Section 25(O)(2)** of the Industrial Disputes Act was received on **June 19, 2025**, with the unit officially closing on **June 24, 2025**. * **Asset Monetization:** The company is aggressively liquidating textile infrastructure to strengthen its balance sheet. * **Textile Machinery Sale:** Approved in February 2026 with a floor price of **₹15 Crores**. * **Net Block Value:** The Karad textile unit carried a net block value of **₹5.65 Crores**. * **Labor & Liabilities:** All workers have been retrenched with statutory notice pay and closure compensation. As of March 2025, the division held liabilities of **₹9.32 crore** and a contingent liability of **₹2.54 crore**. * **Recoverables:** The company is pursuing an outstanding **Interest Subsidy** of **₹1.28 crore** under the **New Textile Policy 2012** (for the period 2016–2019), currently classified as a recoverable current asset. --- ### Core Business: The Engineering Division (EHL) The Engineering segment, operating under the **ECK Haubold & Laxmi (EHL)** brand, is now the company’s sole continued operation. It has shifted from being a standard equipment vendor to a preferred "development partner" for high-precision industrial components. #### Product Portfolio & Innovation * **Machinery:** Specializes in **Super Calender Machines**, **Press Rolls**, **Cold Calenders**, and specialized calenders for the **Technical Textile** industry. * **Specialized Rolls:** Manufacturing of **Cotton Rolls**, **Polyamide Rolls**, **CHL Rolls**, and **Wool Paper Rolls**. * **Value Engineering:** The strategy focuses on **innovation and technology** rather than commodity-scale manufacturing to increase "wallet share" from existing clients. #### Market Diversification & Reach To mitigate stagnation in traditional sectors, EHL is aggressively diversifying its target industries: * **Primary Sectors:** Textiles, Paper, and Sheet Metal. * **Growth Sectors:** **MDF, Plywood, and Corrugation** (specifically applicator and press rolls). * **Geographic Footprint:** Strong domestic presence in **Gujarat, Maharashtra, and Tamil Nadu**. * **Export Growth:** Recent exports to **Bangladesh and Turkey** totaled **₹91.46 Lacs**. Total foreign exchange earned in FY25 reached **₹274.68 Lacs**. --- ### Financial Profile & Capital Structure Hindoostan Mills maintains a conservative financial stance, prioritizing liquidity and a debt-free balance sheet during its restructuring phase. | Metric | FY 2022-23 (Consolidated) | FY 2021-22 (Consolidated) | | :--- | :--- | :--- | | **Total Revenue** | **₹10,276.60 Lakhs** | - | | **Net Profit (Attributable)** | **(₹680.49) Lakhs** | **(₹326.31) Lakhs** | | **Basic & Diluted EPS** | **(₹40.88)** | **(₹19.60)** | | **Reserves and Surplus** | **₹4,718.23 Lakhs** | - | #### Liquidity and Debt Management * **Debt Status:** The company is **debt-free** with a **nil gearing ratio**. * **Credit Facilities:** Maintains an undrawn bank overdraft facility of **₹2.46 crore** (as of August 2025) to ensure operational flexibility. * **Working Capital:** Primarily funded through internal accruals. The company has tightened its credit policy, reducing the average credit period from **0-90 days** to **0-60 days**. * **Taxation:** The company has opted for the concessional **22%** tax rate under **Section 115 BAA** of the Income Tax Act. Notably, no **Deferred Tax Assets** have been recognized due to the current uncertainty of future taxable profits. --- ### Risk Management & Contingencies The company operates under a rigorous oversight framework to manage legacy liabilities and market volatility. #### Legal and Labor Risks * **Caprihans Arbitration:** A long-standing dispute regarding a 1993 property development remains sub judice. While the company has provided **₹63.98 lakhs**, the counterparty's claim stands at **₹15.97 crore plus interest**. * **Labor Codes:** Following the 2025 notification of new **Labour Codes**, an initial provision of **₹5.38 lakhs** was made, with ongoing evaluations for further contract labor liabilities. * **Pending Litigation:** Various labor cases related to the Karad unit remain in Industrial Courts; outcomes are currently unascertainable. #### Operational & Market Risks * **Commodity Volatility:** Exposure to price fluctuations in **Steel** (for Engineering) and legacy exposure to **Cotton and Yarn**. * **Credit Risk:** Managed via internal ratings and **Letters of Credit** for exports; no single customer accounts for more than **10%** of receivables. * **Engineering Competition:** Faces pressure from the **unorganized/grey market** and long sales cycles for heavy machinery. --- ### Corporate Governance & Ownership * **Promoter Holding:** The **Promoter Group** maintains a majority stake of **60.48%**. * **Leadership:** Managed by Joint Managing Directors **Khushaal C. Thackersey** and **Abhimanyu J. Thackersey**. * **Remuneration Discipline:** In FY24, Executive Directors took a **0% increase** in remuneration, reflecting a commitment to capital preservation during the restructuring period. * **Infrastructure:** Manufacturing remains centralized at **Plot No. D-1, MIDC Industrial Area, Karad, Maharashtra**, where the Engineering division continues to operate.