Established in **1995**, Lahoti Overseas Limited is a prominent Indian merchant exporter specializing in cotton textiles and renewable energy generation. The company has evolved into a diversified entity, operating through its core trading business and two wholly-owned subsidiaries: **G Varadan Limited** and the newly incorporated **Innovative Spintex Private Limited** (established **July 2024**). The company is **Ind-AS** compliant and maintains a robust global footprint across several continents. --- ### **Core Business Segments & Revenue Architecture** Lahoti Overseas operates three distinct reportable segments under **Ind AS 108**. While the company is diversifying, the textile trading arm remains the primary engine of growth. | Segment | Primary Activities | Revenue Contribution (FY25 Est.) | | :--- | :--- | :--- | | **Trading Division** | Export of cotton yarns (carded, combed, ply, special) and grey fabrics. | **99.22%** | | **Power Division** | Generation via Wind and Solar power projects. | **0.53%** | | **Other Division** | Shares, securities, and derivatives trading/hedging. | **0.25%** | --- ### **Global Textile Trading & Supply Chain Excellence** The **Trading Division** focuses on the merchant export of high-quality cotton yarns (ranging from coarse to fine counts) and grey knitted/woven fabrics. * **Global Footprint:** The company maintains a strong market presence in **Germany, Portugal, Bangladesh, Vietnam, South Korea, Peru, Colombia, Egypt, and Turkey**. * **Sustainable Product Portfolio:** To meet global **ESG compliance** and "preferred supplier" status, the company has pivoted toward: * **Certified Yarns:** Organic, **BCI-certified** (Better Cotton Initiative), and **Recycled** cotton yarn. * **Traceability:** Integration of **traceability technology** to provide transparent supply chain data to international retailers. * **Strategic Tailwinds:** The company is a direct beneficiary of the "**China Plus One**" strategy, as global buyers diversify sourcing toward India. This is further supported by the **PM-MITRA parks** and the **Production-Linked Incentive (PLI) Scheme**. * **Operational Standards:** Manufacturing partners utilize **Zero-Liquid Discharge (ZLD)** water recycling and power operations via **Solar and Biomass** energy to align with international environmental protocols. --- ### **Renewable Energy & Asset Portfolio** Lahoti Overseas views renewable energy as a long-term stability vertical, despite recent regulatory and technical hurdles. * **Wind Power:** The company leverages India’s position as the world's **5th largest** installed wind power capacity. However, the division recently faced a setback with a windmill project in **Completely Knocked Down (CKD)** condition due to the insolvency of the supplier, **Regen Powertech Pvt Ltd**. This resulted in a **₹2.67 crore** write-off in **May 2023**, with a remaining recovery value of **₹3 crore**. * **Solar Power:** Operates a plant at **Pali, Rajasthan**. While capital costs for solar have fallen, the company has navigated a long-standing PPA dispute. * **Real Estate & Leasing:** The company holds a high-value portfolio of investment properties generating material lease rent. **Key Real Estate Assets:** | Property Asset | Location | Amortized Cost (₹ Lakhs) | | :--- | :--- | :--- | | **Marathon Futurex** | Worli, Mumbai | **1,188.72** | | **Lodha Aria** | Sewri, Mumbai | **348.95** | | **Other Properties** | Mumbai, Coimbatore, Ahmednagar | **1,769.65** | | **Total Fair Value** | All Locations | **3,437.00** | --- ### **Financial Performance & Capital Management** The company reported a significant recovery in total income for **FY 2023-24**, although net profits were impacted by global margin pressures. **Consolidated Financial Summary:** | Metric (₹ in Crore) | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :---: | :---: | :---: | | **Total Income from Operations** | **487.54** | **318.51** | **891.97** | | **Net Profit** | **12.06** | **15.74** | **23.68** | | **Net Worth** | - | **176.05** | - | * **Credit Ratings:** In **February 2026**, **ICRA** reaffirmed a stable outlook with **[ICRA]BBB (Stable)** for Long-term Cash Credit (enhanced to **₹124.20 crore**) and **[ICRA]A3+** for Short-term limits. * **Investment Flexibility:** The company has expanded its investment limit to **₹100 crore** to support strategic growth, inter-corporate loans, and guarantees. * **Shareholder Returns:** Maintained a final dividend of **10% (₹0.20 per equity share)** for FY 2023-24. --- ### **Strategic Growth Drivers** * **Value-Added Shift:** Transitioning from basic commodities to high-margin **Dyed Yarns**, **Specialty Yarns**, and **Grey/Dyed Fabrics**. * **Market Expansion:** Plans to establish **Foreign Offices** to facilitate direct marketing and enhanced customer service in key international territories. * **Trade Agreements:** Leveraging **Free Trade Agreements (FTAs)** with the **UAE, Australia, Japan, and the UK** for preferential market access. * **Raw Material Security:** Supported by the **Cotton Productivity Mission (2024)** to reduce dependence on volatile imports. --- ### **Risk Factors & Mitigation** #### **1. Regulatory & PPA Challenges (Solar Division)** The Power Purchase Agreement (PPA) for the Pali solar plant expired in **March 2019**. Due to uncertainty over tariff rates and non-renewal by Jodhpur Discom, the company recognized **zero revenue** for this plant from **FY 2021-22 through FY 2023-24**, despite active power generation. A settlement was recently reached at the **Rajasthan High Court**, and a supplementary PPA was executed in **September 2023** at a rate of **₹2.24 per kilowatt**. #### **2. Market & Currency Volatility** * **Export Risks:** Sluggishness in world markets and global inflation affect textile volumes. * **Currency Risk:** While INR depreciation aids realizations, extreme volatility is managed through **Forward Exchange Contracts**. * **Raw Material:** In **2024-25**, Indian cotton production dropped by **~10%**, increasing domestic prices and making exports less competitive against global peers. #### **3. Legal & Contingent Liabilities** * **GST Dispute:** A demand of **₹25.56 lakhs** for **FY 2018-19** is currently under appeal regarding non-compliant third-party purchases. * **Promoter Dependency:** The company is heavily reliant on the leadership of **Mr. Ujwal R. Lahoti** (**41+ years** experience) and **Mr. Umesh R. Lahoti** (**38+ years** experience). --- ### **Governance & Management** The company is led by a seasoned management team with deep roots in the textile industry. * **Executive Chairman:** Ujwal R. Lahoti * **Managing Director & CODM:** Umesh R. Lahoti * **CFO:** Mahesh Mishra (Appointed **Nov 2024**) * **Registrar:** **MUFG Intime India Private Limited**