Minaxi Textiles Limited is an established Indian textile manufacturer specializing in the weaving of high-quality cotton and blended fabrics. With over **25 years** of operational history, the company operates as a single-segment entity focused on the production of fancy suiting and shirting materials. Headquartered in **Gujarat**, the company leverages a high-technology manufacturing base to serve both domestic markets and international export requirements. --- ### **Core Manufacturing Infrastructure & Capabilities** The company operates an integrated production facility designed for versatility and high-volume output, ensuring adherence to export-grade quality standards. | Feature | Details | | :--- | :--- | | **Primary Machinery** | **67 Picanol (Belgium)** Rapier Weaving Machines | | **Production Capacity** | Up to **600,000 (6 Lacs) meters** per month | | **Location** | Plot No. 3311, G.I.D.C. Phase IV, Chhatral, Dist. Gandhinagar, Gujarat | | **Specializations** | Value-added weaving, Lycra-based suiting, and Grey cloth | | **R&D Facility** | Dedicated **State-of-the-Art R&D Center** for cost-effective process development | --- ### **Specialized Product Portfolio** Minaxi Textiles focuses on premium and technical weaves, catering to the B2B segment with a diverse range of natural and synthetic blends. * **Cotton Suiting & Shirting:** High-grade materials featuring various weaves such as **Twill, Satin, and Broken Weave**. * **Corduroy (Codroi) Suiting:** A comprehensive range including **14, 16, 19, 21, and 24 wale** counts, alongside **Fancy Corduroy** variants. * **Stretch & Performance Fabrics:** Expertise in **Lycra Fancy Fabric** and high-performance **Power Lycra Suiting**. * **Linen & Blends:** Production of pure **Linen Fabric** and **Cotton-Linen Blended** textiles. * **Premium Weaves:** **Jacquard (Jackard) Suiting** for high-end applications and **Cotton Quilts**. * **Grey Cloth:** Base material production for further processing in suiting and shirting. --- ### **Strategic Pivot: Asset Monetization & Debt Reduction** Following a comprehensive business review in **2025**, management has shifted its strategy from aggressive expansion to **financial consolidation** and **deleveraging**. * **Asset Disposal:** In **March 2025**, the company approved the sale of **Plot No. 3311/1** (**4,671.38 Sq. Mtr.**) to **Bansidhar Textiles Pvt Ltd** (a Related Party) for **₹3.45 Crore**. * **Operational Consolidation:** All active manufacturing is now concentrated on the remaining **6,368.62 Sq. Mtr.** at **Plot No. 3311/2**. * **Debt Liquidation:** Proceeds from asset sales are strictly earmarked for the repayment of company debts to reduce interest burdens and improve the bottom line. * **Expansion Outlook:** The company has explicitly stated it is **not planning for any expansion** in the near term, prioritizing the elimination of operational losses and the stabilization of the balance sheet. --- ### **Financial Performance & Capital Structure** The company has faced a challenging environment characterized by cash losses, though recent years show a trend toward narrowing deficits following a **Resolution Framework 2.0** restructuring in **January 2022**. #### **Comparative Financial Summary** *(All figures in **₹ Lacs** unless specified)* | Particulars | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | | **Gross Turnover** | **2,888.47** | **3,429.02** | **2,921.09** | | **Net Profit / (Loss)** | **(47.29)** | **(311.16)** | **(621.28)** | | **Basic & Diluted EPS (₹)** | — | **(0.63)** | **(1.26)** | | **Total Equity** | **231.96** | **279.25** | **592.52** | | **Net Debt** | **1,429.65** | **1,685.62** | **2,034.16** | | **Net Debt to Equity Ratio** | **6.16** | **6.04** | **3.43** | #### **Debt Repayment Schedule** The company’s credit facilities are secured by the hypothecation of plant, machinery, and factory assets, supported by personal guarantees from Directors. * **WCTL (GECL):** **₹3.09 Crore**; repayable in **36 EMIs** of **₹9.61 Lakhs** (commenced Sept 2021). * **WCTL:** **₹7.00 Crore**; **5-year** ballooning repayment (commenced Sept 2023). * **FITL - I:** **₹0.34 Crore**; **36 installments** (commenced Sept 2023). --- ### **Operational Strategy & Market Positioning** Minaxi Textiles aligns its business model with national initiatives while focusing on client-centric growth. * **'Make in India' Alignment:** Leveraging domestic production of natural and synthetic fibers to maintain a competitive cost structure. * **Client Diversification:** Active marketing to reduce dependency on single large clients and expand the B2B customer base. * **Export Focus:** Maintaining a strategic presence in international markets, with a primary focus on **Sri Lanka** for special fabric orders. * **Efficiency Mandate:** Continuous focus on minimizing wastage and improving machine efficiency to offset rising raw material and energy costs. --- ### **Risk Profile & Contingencies** The company operates under a **"Going Concern"** status, heavily dependent on the success of its debt restructuring and future operational cash inflows. #### **Financial & Market Risks** * **Interest Rate Sensitivity:** As a debt-heavy entity, a **50 basis point** increase in floating rates impacts Profit Before Tax by approximately **₹7.62 Lacs**. * **Liquidity Risk:** The company relies on the expectation of improved turnover to meet near-term cash obligations. * **Gearing:** The **Net Debt to Equity Ratio** has risen to **6.16**, reflecting a shrinking equity base due to accumulated losses. #### **Legal & Regulatory Exposure** The company is contesting several claims that have not been recognized as liabilities: | Dispute | Authority | Amount (₹ Lakhs) | Status | | :--- | :--- | :--- | :--- | | Interest/Prepayment Charges | **Axis Bank Ltd** | **56.94** | Sub judice | | Income Tax (FY 18-19) | **CIT (Appeals)** | **62.06** | Pending | | Income Tax (FY 17-18) | **Comm. (Appeals)** | **2.44** | Vivaad Se Vishwas | #### **Governance & Compliance** * **Leadership:** **Shri Dineshkumar Patel** was re-appointed as **Managing Director** for a five-year term through **2024–2029**. * **Audit:** **M/s. Parth R. Shah and Co.** serves as Statutory Auditors for the **2024–2029** tenure. * **Compliance Notes:** Management is currently assessing the impact of the **New Labour Codes, 2020** (effective **Nov 2025**) on wage bills. Recent minor SEBI Insider Trading Regulation violations by a promoter (May 2023) were noted. --- ### **Future Outlook** The management’s immediate priority is the transition from a loss-making entity to a stable, debt-light operation. By liquidating non-core land assets and focusing on high-margin **Lycra** and **Jacquard** products, the company aims to stabilize its financial position and eventually return to a path of sustainable operating profit.