Mohite Industries is a family-built industrial company that turned a small-town construction legacy into precision textile manufacturing and then used the steady cash from that mill to build a hydroelectric plant - a pattern of funding the next venture from the last one that still defines how it operates. It began in 1990 when the Mohite family, who had made their name building earthen dams, set up a cotton-spinning unit on a 35-acre site in Vadgaon, Kolhapur, and started production in 1995. The recurring approach is simple: pick a capital-intensive, long-life asset, modernise it with top-tier imported machinery, and run it for a domestic customer who needs a steady supply - first yarn, then electricity. # Business segments Two engines, one feeding the other - a textile mill that was modernised into a specialty-yarn operation, and a hydroelectric plant built with the mill's cash flows, now selling all its power to a single private buyer. ## 1. Textiles: the original engine that still runs the group **A single-location cotton-spinning mill making premium compact and slub yarns for the domestic market, running on machinery from the world's best equipment makers.** - **Specialty yarns, not commodity output** - the plant makes 100% cotton yarn in counts between 20s and 60s, but its real edge is in Compact and Slub yarns, which command better prices because they produce smoother, stronger fabrics with deliberate texture effects. The company also takes on job work, processing cotton yarn for other parties on its machines. - **Machinery from the top shelf** - when the company replaced its original 1995 equipment, it bought from RIETER, SCHLAFHORST, LUWA, VOLKMANN, and USTER, the global leaders in spinning technology, so the quality floor is set by the machines themselves. The installed capacity now stands at 33,312 spindles after expansion and modernisation. - **Cotton is the single biggest risk** - the primary raw material is cotton, and management identifies rapid increases in cotton prices as the main threat to the business, because yarn prices cannot always keep pace. The company also buys in some yarn and waste to supplement its own production. - **Domestic-only, by circumstance** - direct and merchant exports of yarn were nil for each of the last four years, so the entire output is absorbed within India, where the company notes that some competing mills have not restarted fully, easing competitive pressure. - **R&D aimed at the export door** - the company has installed a new Slub and Compact Cotton Yarn System and has tested Viscose and Polyester yarns with good results, keeping the option open for a move into export markets and blended fibres. ## 2. Hydroelectric Power: a captive asset turned merchant supplier **A 10 MW run-of-river plant at the foot of a dam that generates power with no fuel cost and now sells every unit to a single private off-taker.** - **Zero fuel, predictable output** - the plant sits at the Radhanagari Dam Foot near Fejiwade, Kolhapur, and uses the dam's water release to generate electricity, so its running cost is minimal and its output follows the water flow rather than market prices. In FY25 it generated roughly 25.5 million KWh gross, with transmission losses of only about 135,000 KWh. - **From state utility to private buyer** - for years the plant sold all its power to MSEDCL, the Maharashtra state electricity utility, but in FY25 the entire net generation of about 25.4 million KWh went to EON KHARADI INFRA PVT. LTD., a private company, with a brief stop at the Indian Energy Exchange in FY24. The customer base has shifted, but the plant always finds a single buyer for its full output. - **Once fed the mill, now stands alone** - in FY20 the textile division consumed 37,68,071 KWh internally, but from FY21 onward intersegment transfers dropped to nil, meaning the power business is now a pure merchant operation with no dependence on the textile unit's demand. # Group structure and partners **The company sits inside a tight promoter network with a construction subsidiary it once tried to sell, plus trading relationships with family-owned cotton and motor firms.** - **A subsidiary the company tried to exit** - Mohite Industries holds 52% of Solitaire Constructions Private Limited, a promoter-group construction company that the board resolved to sell back to the promoter family in August 2021 for about Rs. 2.8 crore because it had no projects and was expected to earn only from maintenance work. Yet the subsidiary remained consolidated and even contributed over Rs. 21.5 crore in revenue for the half-year to September 2024, so the sale appears not to have closed. - **Related-party trade runs alongside the main business** - the company buys and sells goods and services with several promoter-linked entities, including Chirag Sanditext Private Limited, a partnership firm called Mahalaxmi Cotton Ginning Pressing & Oil Industries (which accounted for about Rs. 14 crore in trading during FY24), and Mohite Motors Private Limited for labour charges. These are not separate segments but they are recurring commercial relationships within the promoter group. - **Promoters hold a tight grip** - as of March 2025, the promoter group owned 68.82% of the company, and the Managing Director, Mr. Shivaji Mohite, runs the business alongside a Whole-time Director who was trained on Rieter equipment in Europe and the USA.