Lakhotia Polyesters (India) Limited is an established Indian manufacturer specializing in the production of lacquered metallised polyester films and metallic yarns. Primarily serving the global textile and apparel value chain, the company leverages a vertically integrated manufacturing process to produce high-durability, reflective materials. The company is currently undergoing a strategic transformation characterized by promoter holding consolidation and aggressive international expansion. --- ### **Core Product Portfolio & Technical Capabilities** The company operates within a single primary business segment: **Metallic Yarn & Textile Fabrics**. Its technical expertise lies in the precision coating of polymer films to create high-performance materials. * **Lacquered Metallised Polyester Films:** The company’s foundational product, created by coating polymer films with **aluminium**. This process ensures the material is resistant to **sunlight, moisture, and air**, providing a high-gloss, reflective finish. * **Metallic Yarns:** Produced from high-grade coated films, these yarns are essential components for the hosiery, garment, and apparel industries. * **Textile Fabrics:** Manufacturing of finished and semi-finished fabrics for both domestic consumption and merchant exports. * **Diversified Industrial Applications:** Beyond textiles, the company’s film technology is utilized in: * **Flexible Packaging & Shrink Labels:** Providing barriers against light and moisture. * **Industrial Engineering:** Used in **cable insulation** and **magnetic media**. * **Aesthetics:** High-shine films for decorative printing and materials. --- ### **Strategic Growth & Global Expansion Roadmap** Lakhotia Polyesters is actively transitioning from a domestic player to a global entity through inorganic growth and ownership stabilization. * **International Acquisition (Dubai):** The Board has approved a **100% stake acquisition** of **New Nexus FZ LLC**, a Dubai-based entity. While originally targeted for March 2026, the completion date has been revised to **June 30, 2026**, due to geopolitical regulatory delays. * **Promoter Consolidation (2023 Open Offer):** To strengthen corporate control, the promoters executed a Share Purchase Agreement (**SPA**) and a subsequent mandatory Open Offer: * **SPA Details:** Acquired **14,09,050** shares (**13.45%**) at **₹10** per share. * **Open Offer Details:** Offered to acquire up to **27,24,000** shares (**26.01%**) at **₹12** per share. * **Strategic Lock-in:** The acquirers have committed to maintaining the current business line and retaining significant assets for at least **two years** post-acquisition. * **Institutional Entry:** In **January 2024**, **Intensive Finance Private Limited** became a significant stakeholder, acquiring **9,41,128** shares (**8.99%**) via a Scheme of Amalgamation. --- ### **Financial Performance & Capital Structure** The company has demonstrated a robust recovery trajectory, moving from net losses to significant revenue and profit growth over the last three fiscal cycles. #### **Comparative Financial Summary** | Metric (INR Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | :--- | | **Gross Revenue** | **72.17** | **28.48** | **15.16** | **20.21** | | **Net Profit / (Loss)** | **6.02** | **0.0667** | **(1.92)** | **(0.4641)** | #### **Capital Management (as of March 31, 2025)** * **Authorised Share Capital:** **₹10,50,00,000** (1.05 crore equity shares of **₹10** each). * **Paid-up Equity Capital:** **₹10,47,39,880**. * **Total Borrowings:** **₹1,503.41 Lakhs** (up from **₹604.67 Lakhs** in FY24). * **Total Equity:** **₹1,530.85 Lakhs**. * **Dividend Policy:** The Board has opted to **retain all earnings** (no dividend recommended) to fund expansion and offset historical losses. --- ### **Operational Infrastructure & Asset Base** The company’s operations are concentrated in the industrial hub of Nashik, Maharashtra, providing logistical advantages for both domestic supply and exports. | Asset Category | Details | | :--- | :--- | | **Manufacturing Units** | Plot Nos. 158-159, Shree Samarth Sahakari Audyogik Vasahat Ltd, Pimpalgaon | | **Registered Office** | Pimpalgaon (Baswant), Tal. Niphad, Dist. Nashik | | **Collateral Assets** | Plots 11-14, Malegaon, Dist. Nashik (Promoter/Company owned) | | **Working Capital Security** | Hypothecation of **Stocks/Inventory** and **Book Debts/Receivables** | --- ### **Risk Management & Governance Framework** The company employs a formal risk management framework to navigate market volatility and regulatory requirements. * **Market Risk & Hedging:** The company has commenced **Futures and Options (F&O)** transactions on recognized exchanges to hedge against price volatility. A strict **non-speculation policy** ensures derivatives are used only for risk mitigation. * **Liquidity & Gearing:** Management monitors a **gearing ratio (Debt/Equity)** to ensure "going concern" status. Liquidity is managed via **rolling cash flow forecasts** and maintained credit lines. * **Governance Structure:** The Board consists of **six Directors**, with **50% Independent Directors**. * **Managing Director:** **Mr. Madhusudhan Lakhotiya** (Term: 2024–2027). * **Chairman & Executive Director:** **Mrs. Jayshri Lakhotiya**. * **Compliance Observations:** * **BSE Penalties:** The company faced fines for delayed **Regulation 23(9)** disclosures regarding Related Party Transactions in 2023. * **Internal Systems:** Auditors noted delays in the **Structured Digital Database (SDD)** and the lack of a formal pre-meeting information-sharing system for Directors. * **Raw Material Risk:** High sensitivity to **Polyester** price fluctuations, which are the primary cost drivers for flexible packaging films.