Mohite Industries Limited (formerly R M Mohite Industries Limited) is a diversified Indian industrial enterprise with a core focus on high-quality textile manufacturing and renewable energy generation. Established in **1990** and headquartered in Kolhapur, Maharashtra, the company has evolved from its ancestral roots in construction into a sophisticated manufacturer of value-added cotton yarn. ### Integrated Business Model and Segment Infrastructure The company operates through three distinct yet complementary segments, leveraging a mix of industrial manufacturing and green energy production. | Segment | Core Activity | Infrastructure & Capacity | Location | | :--- | :--- | :--- | :--- | | **Textiles** | Manufacturing of **100% Cotton Yarn** (Counts **20's to 60's**). | **33,312 Spindles**; **35-acre** facility with machinery from **RIETER, SCHLAFHORST, and USTER**. | Vadgaon, Kolhapur | | **Hydro Power** | Renewable energy generation. | **10 MW** Hydro Power Plant at the foot of Radhanagari Dam. | Fejiwade, Kolhapur | | **Construction** | Infrastructure and real estate development. | Managed via **Solitaire Constructions Private Limited** (**52%** ownership). | India | ### Strategic Expansion and Modernization Program Mohite Industries is currently executing a multi-year capital expenditure program designed to scale production while lowering the unit cost of manufacturing. * **Capacity Scaling:** The company is aggressively upgrading its spindle count. By replacing **12,096** legacy spindles (from the **1995** era) and adding **23,712** new units, the company is targeting a final capacity of **46,512 Spindles**. * **Value-Added Product Mix:** Strategy has shifted toward **Compact and Slub yarn**. These specialized products command premium pricing and meet the stringent quality requirements of the export market. * **Material Diversification:** Beyond traditional cotton, the company has successfully tested **Viscous and Polyester Yarn** blends to diversify its revenue streams and mitigate cotton price volatility. * **Technological Absorption:** The facility utilizes world-class technology from **LUWA, VOLKMANN, and SCHLAFHORST**, ensuring high-efficiency output and precision quality control. ### Financial Performance and Capital Structure The company has demonstrated significant revenue growth over the last three fiscal years, supported by a strategic stock split to enhance market liquidity. **Consolidated Financial Summary:** | Metric (₹ in Crore) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **166.75** | **125.00** | **84.42** | | **Profit After Tax (PAT)** | **5.43** | **2.35** | **6.69** | | **Total Equity** | **114.05** | **110.94** | **117.24** | | **Total Borrowings** | **115.06** | **134.60** | **104.53** | **Key Financial Developments:** * **Stock Split:** In December 2024, the company completed a sub-division of equity shares, reducing the face value from **₹10 to ₹1** per share. This increased the total number of shares to **20,09,97,000** to broaden the shareholder base. * **Debt Refinancing:** In January 2026, the Board approved the issuance of **₹150 Crore** in unrated, unlisted **Non-Convertible Debentures (NCDs)**. This private placement is specifically intended to refinance existing high-cost debt and optimize the balance sheet. * **Cost Pressures:** Standalone profitability has faced headwinds from raw material inflation. The cost of cotton and yarn rose to **₹99.2 crore** in **FY 2025**, representing **80.45%** of sales, compared to **62.68%** in the previous year. * **Dividend Policy:** The Board has opted to retain earnings for expansion, recommending **no dividend** for the fiscal years **2023, 2024, and 2025**. ### Risk Management and Mitigation Framework The company operates a formal risk management framework overseen by the Audit Committee to address market, credit, and operational exposures. * **Raw Material Volatility:** The primary risk is the rapid increase in cotton prices. The company mitigates this by focusing on **Compact and Slub yarns** which allow for higher margin pass-through. * **Currency Exposure:** While the company maintains R&D for export markets, it has recently shifted focus to the **domestic market**, rendering its **Foreign Currency (USD)** risk **minimal**. No hedging instruments are currently deemed necessary. * **Credit & Liquidity Risk:** The company maintains a **Nil** loss allowance for trade receivables as of March 31, 2025. It is not classified as a **wilful defaulter** by any financial institution. * **Contingent Liabilities:** As of March 2025, the company carries **Corporate Guarantees** of **₹2,748.50 lakhs** and **Bank Guarantees** of **₹130.94 lakhs**. ### Corporate Governance and Leadership Mohite Industries maintains high standards of transparency and regulatory compliance. * **Board Composition:** The Board consists of **6 Directors**, including **3 Independent Directors (50%)** and **1 Woman Director**. * **Promoter Leadership:** **Mr. Shivaji R. Mohite** (Chairman & Managing Director) leads the group with over **26 years** of industrial experience. * **Shareholding:** **99.76%** of the total paid-up capital is held in **dematerialized form**. The company is exclusively listed on the **BSE Ltd**. * **Subsidiary Oversight:** **Solitaire Constructions Private Limited** is managed as a **Material Unlisted Subsidiary**. The company maintains no other associates or joint ventures, ensuring a streamlined corporate structure. * **Asset Integrity:** All title deeds for immovable properties are held directly in the company’s name, and a rigorous annual physical verification of all **Property, Plant, and Equipment** is conducted.