Pasupati Spinning & Weaving Mills Ltd is an Indian industrial enterprise currently undergoing a strategic transformation. Historically a textile manufacturer, the company is pivoting away from volatile traditional spinning operations toward high-margin **value-added sewing threads**, **sustainable recycled materials**, and a new growth engine in **logistics and warehousing**. ### Revenue Diversification and Segment Performance The company has restructured its operations to mitigate market volatility, focusing on units with higher profitability and repurposing underutilized assets. | Segment | Primary Location | Operational Status & Performance | |:---|:---|:---| | **Sewing Thread** | Kala Amb, Himachal Pradesh | **Core Revenue Driver**: Contributes **90-95%** of total turnover. Remains the primary profit center despite a sluggish textile market. | | **Logistics & Warehousing** | Dharuhera, Haryana | **High-Growth Pivot**: Developed on surplus land. Revenue surged to **Rs. 327.54 Lacs** in FY 2024-25 from **Rs. 155.52 Lacs** in FY 2023-24. | | **Knitting & Processing** | Dharuhera, Haryana | **Active**: FY 2024-25 turnover rose to **Rs. 395.86 Lacs** (vs **Rs. 270.34 Lacs** prev. year), supported by key clients like **Vishal Mega Mart**. | | **Spinning Unit** | Dharuhera, Haryana | **Discontinued**: Operations halted in FY 2024-25 due to unviability; site is being repurposed for warehousing. | ### Strategic Pivot: Logistics and Asset Monetization The company has formally amended its **Memorandum of Association (MoA)** to include **Logistics and Warehousing** as a primary business objective. This strategy leverages the company’s significant land holdings in **Dharuhera, Rewari (Haryana)**. * **Infrastructure Development:** The company is leasing land and buildings to create modern distribution centers, material management hubs, and transportation facilities. * **Monetization Strategy:** Under **Section 180 (1) (a)**, management is seeking to monetize "substantially the whole" of specific underperforming undertakings through leasing to generate steady, non-cyclical rental income. ### Product Innovation and Sustainability Roadmap Pasupati is positioning itself as a provider of sustainable textile solutions, targeting the growing global demand for eco-friendly materials. * **Recycled Polyester Yarn:** The company has developed a specialized line of yarn manufactured from **recycled PET bottles**. * **GRS Certification:** The company has secured **Global Recycled Standard (GRS)** certification. Sampling has commenced, with a strategic target to sell GRS-approved yarn at a **10% price premium** over standard products. * **Organic Standards:** The company is pursuing **GOTS (Global Organic Textiles Standards)** approval for its knitting and dyeing operations to capture higher-margin international and domestic orders. * **Industrial Diversification:** Beyond textiles, the company maintains broad mandates for **chemicals** (ammonolysis and aromatization), **alloys**, **stainless steel pipes**, and **specialized paper packaging** (tracing and vellum papers). ### Operational Modernization and Energy Efficiency To combat rising input costs and chronic **labour shortages**, the company is executing a comprehensive **Modernization Plan**. * **Automation:** Manual equipment at the Sewing Thread unit is being replaced with **fully automatic state-of-the-art machines**, including two imported **Autoconer machines** from **Germany**. * **Solar Energy Integration:** * Commissioned a **2800 KWp Solar Generating Plant** at Kala Amb in February 2025. * **Financial Impact:** Expected to save **Rs. 300 Lacs** annually in power costs. * A trial **100 KVA facility** at Dharuhera already demonstrated savings of **Rs. 9 Lacs** from **120,470 units** generated. * **Green Thermal Power:** Replaced traditional pet-coke boilers with **bio-degradable fuel boilers** (utilizing biomass/stems) to reduce the environmental footprint and fuel costs. ### Financial Performance Summary While the broader textile sector has faced a "bad phase" for over two years, Pasupati’s focus on value-added segments has protected its bottom line. | Particulars (Rs. in Lacs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Sales and Other Income** | **10,175.38** | **11,017.28** | **13,869.09** | | **Profit After Taxation (PAT)** | **87.81** | **58.57** | **109.78** | | **Total Comprehensive Income** | **106.39** | **69.83** | **116.37** | | **Retained Earnings** | **888.56** | **800.75** | **742.18** | | **Share Premium Account** | **866.10** | **866.10** | **866.10** | **Foreign Exchange Trends:** The company saw a total cessation of foreign exchange earnings in the last two reporting periods (**NIL** in 2024 and 2025) compared to **Rs. 1,340.33 Lacs** in 2023, reflecting a strategic shift toward domestic value-added markets. ### Governance and Leadership The company has secured long-term leadership stability with board appointments extending through the end of the decade. * **Mr. Ramesh Kumar Jain (MD):** Re-appointed for a 5-year term (**2025–2030**) with a salary cap of **Rs. 30 Lacs p.a.** * **Independent Directors:** Mr. Raj Kumar Gupta, Mr. Anil Kumar Jain, and Mrs. Preeti Aggarwal have been appointed for 5-year terms through **2029**. * **Related Party Synergy:** The company maintains operational ties with **Shivani Textiles Ltd**, targeting **Rs. 400 Lacs** in fabric sales and **Rs. 700 Lacs** in job work charges annually. ### Risk Factors and Contingencies Investors should note several ongoing legal and regulatory matters that impact the company’s financial reporting. * **Land Compensation Claim:** The company has a pending claim of **Rs. 614.64 Lacs** for factory land acquired by the Government of Haryana. Statutory auditors have issued a **qualified opinion** as this is not yet accounted for; management will recognize it only upon actual receipt. * **Sealed Inventory Dispute:** Since **August 2016**, stocks valued at **Rs. 172.16 Lacs** have been inaccessible due to the sealing of a third-party job worker's premises. Legal rulings favor the company, but recovery is pending appeal. * **Labor Code Transition:** The company is currently assessing the financial impact of the four new **Labor Codes** (Wages, Social Security, etc.) which became effective in late **2025**. * **Historical Status:** Formerly a "Sick Industrial Company" (2005), the company has achieved a positive net worth through a **BIFR-sanctioned scheme**, though formal de-registration from BIFR/NCLT is still an administrative pending matter.