Indian Acrylics Limited is a specialized manufacturer within the acrylic textile value chain, operating an integrated production facility in **Sangrur, Punjab**. The company is **ISO 9001-2008** certified and maintains an in-house **R&D centre** registered with the **Ministry of Science & Technology**, focusing on high-value dyed yarn varieties and energy conservation. --- ### **Core Business Segments & Product Portfolio** IAL operates through two primary reportable segments, leveraging a diversified product mix to cater to both industrial and consumer textile markets. * **Fibre Segment:** Production and sale of **Staple Fibre, Tow, and Tops**. This segment serves as the foundation of the company’s manufacturing value chain. * **Yarn Segment:** Production of various **Acrylic Yarn** varieties. Recent strategic focus has shifted toward **new varieties of dyed yarns** to capture higher margins and drive sales growth. --- ### **Financial Performance & Revenue Trends** The company has experienced significant volatility in recent years, transitioning from a period of high growth and turnaround in FY 2022-23 to a contraction in FY 2024-25 due to global macroeconomic headwinds. **Revenue Distribution by Segment (₹ Lakhs)** | Segment (External Sales) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Fibre** | **20,300.99** | **26,016.60** | **49,029.40** | | **Yarn** | **18,632.16** | **28,599.69** | **41,207.25** | | **Total Revenue** | **38,933.15** | **54,616.29** | **90,236.65** | **Historical Production Volumes (Metric Tonnes)** | Product | FY 2023 | FY 2022 | | :--- | :--- | :--- | | **Acrylic Fibre** | **36,921 MT** | **20,213 MT** | | **Acrylic Yarn** | **13,489 MT** | **8,540 MT** | **Profitability Metrics:** * **Turnaround Performance:** In FY23, the company reported an **Operating Profit (EBIDTA)** of **₹ 71.85 crore**, a sharp recovery from a loss of **₹ 17.35 crore** in FY22. * **Net Profit:** FY23 net profit stood at **₹ 19.37 crore** (after comprehensive income), recovering from a substantial net loss of **₹ 75.91 crore** the previous year. * **Depreciation Optimization:** A technical evaluation led to a revision of the useful life of **Plant & Machinery**, resulting in a **₹ 7.53 crore** reduction in annual depreciation charges. --- ### **Geographical Footprint & Global Operations** While India remains the primary revenue driver, IAL maintains a global presence across **Africa, Europe, South America, and Asia**. **Market Revenue Breakdown (₹ Lakhs)** | Market | FY 2024-25 | FY 2023-24 | | :--- | :--- | :--- | | **Domestic (India)** | **31,378.70** | **41,310.40** | | **International (Exports)** | **7,554.49** | **13,305.90** | | **Total** | **38,933.19** | **54,616.30** | **European Subsidiary:** * **Carlit Trading Europe, S.L.U (Spain):** A **Wholly Owned Subsidiary** intended to facilitate European sales. * **Current Status:** Operations were **temporarily suspended** due to prohibitive energy prices and weak demand in Europe. It has been classified as an **Inactive Company** since **September 2021**. As of the last audit, it held assets of **₹ 2.51 lakhs**. --- ### **Capital Structure & Financial Liability Profile** As of **March 31, 2025**, the company’s total non-derivative financial liabilities were **₹ 305.55 crore**. **Liability Breakdown (as of March 31, 2025)** | Liability Type | Up to 1 Year | Above 1 Year | Total | | :--- | :--- | :--- | :--- | | **Borrowings** | **₹ 48.82 crore** | **₹ 133.30 crore** | **₹ 182.12 crore** | | **Trade Payables** | **₹ 123.15 crore** | - | **₹ 123.15 crore** | | **Other Financial Liabilities** | **₹ 0.28 crore** | - | **₹ 0.28 crore** | **Key Financial Notes:** * **Debt Reduction:** Bank/F.I. term loans were reduced to **₹ 34.56 crore** by September 2025, down from **₹ 58.89 crore** year-on-year. * **Interest Exposure:** The company holds **₹ 8,917.35 lakhs** in variable-rate borrowings, creating sensitivity to interest rate fluctuations. * **Credit Rating:** In August 2023, **Infomerics** downgraded the company’s rating to **IVR D (Single D)** for both long and short-term facilities. * **Equity:** Shares are traded under **ISIN: INE862B01013**, with **93.57%** of equity dematerialized. --- ### **Strategic Growth Drivers & Policy Tailwinds** IAL is positioned to benefit from Indian government initiatives aimed at making the Man-Made Fibre (MMF) sector globally competitive. * **Production Linked Incentive (PLI):** Access to a **₹ 10,683 Crore (USD 1.44 billion)** scheme for MMF and technical textiles. * **Tax Rationalization:** A **Uniform GST rate of 12%** on MMF fabrics and yarns. * **Infrastructure Support:** Development of **75 new textile hubs** and the **Amended Technology Upgradation Fund (ATUFS)**. * **Raw Material Outlook:** Supply stability for **Acrylonitrile** is expected to improve due to capacity expansions within the **Asian Region**. --- ### **Risk Factors & Mitigation Strategies** The company navigates a complex landscape of geopolitical and market-specific challenges. | Risk Category | Key Challenges | Mitigation / Context | | :--- | :--- | :--- | | **Market Dumping** | Undervalued imports from **China, Thailand, and Peru**. | Seeking **Anti-Dumping Duties** via DGTR; Union Budget 2025 raised tariffs on knitted fabrics to **20%**. | | **Demand Contraction** | Indian Acrylic Fibre demand fell **10%** in 2024-25. | Focus on **rural domestic demand** and product diversification into dyed yarns. | | **Currency Risk** | Volatility of **INR against USD**. | Use of **natural hedges** and selective **forward contracts** (e.g., **USD 2.14 Lakhs**). | | **Input Costs** | Volatility in **Acrylonitrile** and fuel prices. | R&D focus on **energy conservation** and fuel cost reduction. | --- ### **Legal Contingencies & Arbitration** IAL is involved in a long-standing legal dispute with **M/s E.I. Dupont (USA)**: * **Liability:** An arbitration award of **US$ 10.22 Lakhs** (approx. **₹ 8.73 crore**) plus interest against IAL is currently under appeal. No provision has been made as the award was previously dismissed by the Delhi High Court. * **Receivable:** IAL holds a decree to recover **US$ 5 lakhs** plus interest (totaling **₹ 8.14 crore**) from DuPont, currently being pursued via an execution petition filed in **2013**. --- ### **Operational Infrastructure & Governance** * **Manufacturing:** Located at Village Harkishanpura, **Sangrur-Patiala Highway, Punjab**. * **Corporate Leadership:** Led by **Sh. Rajinder Kumar Garg** (MD) and **Sh. Dheeraj Garg** (Additional MD). The board includes **Mrs. Surabhi Malik, IAS** (Nominee PSIDC). * **Group Synergy:** Part of a conglomerate including **Steel Strips Wheels Ltd** and **SAB Industries Ltd**. * **Banking Consortium:** Punjab National Bank, State Bank of India, Indian Overseas Bank, and HDFC Bank. Facilities are backed by personal guarantees from the promoters.