**(Formerly S R Industries Limited)** Arur Footwear Limited is an Indian footwear manufacturer and brand owner currently undergoing a comprehensive strategic and operational transformation. Following its emergence from the **Corporate Insolvency Resolution Process (CIRP)** in **July 2024**, the company has transitioned to new ownership under **Bazel International Limited (BIL)**. The company is pivoting from a legacy contract manufacturing model to a **Direct-to-Consumer (D2C)**, digital-first brand strategy targeting India’s rapidly expanding youth demographic. --- ### I. Post-Insolvency Corporate Restructuring The company’s rehabilitation was formalized via a resolution plan approved by the **NCLT Chandigarh Bench** on **July 1, 2024**. This process resulted in a "clean slate" restart, extinguishing historical liabilities and resetting the capital structure. * **New Ownership:** **Bazel International Limited (BIL)** is the Successful Resolution Applicant (SRA) and now serves as the holding company. * **Capital Infusion:** The new promoters infused **₹11.70 Crore** to settle admitted claims and have committed to further working capital tranches of **₹1.50 Crore** and **₹5.00 Crore** via **Compulsorily Convertible Debentures (CCDs)**. * **Debt Resolution:** All previous bank liabilities (formerly classified as **NPA** with **SBI** and **UCO Bank**) have been settled. No charges or securities remain on the company’s assets. * **Identity Shift:** The company is rebranding to **Arur Footwear Limited** to distance itself from its legacy insolvency status and signal its new market positioning. #### Post-Restructuring Shareholding Structure | Category | Pre-Issue (Post-CIRP) | Post-Issue (Projected) | | :--- | :--- | :--- | | **Promoter & Promoter Group** | **1,86,89,825 (95.00%)** | **3,51,89,825 (97.28%)** | | **Public Shareholders** | **9,83,675 (5.00%)** | **9,83,675 (2.72%)** | | **Total Equity Shares** | **1,96,73,500** | **3,61,73,500** | *Note: The company is committed to achieving the **Minimum Public Shareholding (MPS)** of **10%** within **12 months** and **25%** within **3 years**.* --- ### II. Manufacturing Infrastructure & Revitalization The company’s primary physical asset is an integrated manufacturing plant in **Himachal Pradesh**. While manufacturing was suspended during the CIRP, the new management is currently in the "Revitalization Phase," securing necessary **NOCs** and government approvals to restart production. * **Location:** Village Singha, Tehsil Haroli, District **Una, Himachal Pradesh**. * **Integrated Capabilities:** The facility includes **Rubber Outsole Moulding**, an **EVA Sheet** plant, **IMEVA** (Injection Moulded EVA) moulding, cutting, stitching, and assembly lines. * **Technology:** Machinery is sourced from high-precision manufacturers in **Taiwan, Korea, Italy, and Germany**. * **R&D and Modernization:** * Upgrading **Rubber Molding** facilities to increase productivity. * Implementing **computerized stitching** to reduce manpower costs. * Developing eco-friendly formulations using **water-based inks** and reduced chemical additives. * **Land Utilization:** The company is assessing the feasibility of utilizing **5 acres** of vacant land at the Una site for agricultural or allied industrial activities to maximize asset yield. --- ### III. "AAA" Market Strategy & Brand Portfolio Arur Footwear has adopted a **"AAA" strategy**—improving **Availability, Affordability, and Accessibility**. The company is currently operating as a **trader** to maintain market presence while its own manufacturing lines are being recommissioned. #### Brand Segmentation | Brand | Status | Target Segment | Channel Strategy | | :--- | :--- | :--- | :--- | | **Pacalop** | **Launched** | Bold, playful flip-flops for Gen Z/Millennials | **Amazon, Flipkart** (Digital-first) | | **Arur** | **Prototyping** | Premium sneakers and lifestyle footwear | Omni-channel | | **Pipeline** | **R&D Phase** | Ergonomic school shoe range | Institutional/Retail | #### Product Categories * **Sports Footwear:** Running shoes featuring **IMEVA midsoles**, sports sandals, and die-cut joggers. * **Lifestyle:** Fashion-forward sneakers and casual silhouettes. * **Open Footwear:** High-margin **EVA Flip Flops** with vibrant aesthetic palettes. --- ### IV. Supply Chain & Operational Ecosystem The company leverages long-standing vendor relationships to ensure material quality and cost-efficiency. * **Raw Materials:** Sourced from industry leaders such as **Jasch Industries Ltd** (PU fabrics) and **Reliance** (EVA). * **Adhesives:** Technical partnerships with international suppliers **Henkel** and **Nan Pao**. * **Logistics:** Transitioning toward an **Omni-channel** model, integrating e-commerce fulfillment with traditional distribution to capture growth in **Tier 1 and Tier 2** cities. --- ### V. Financial Summary & Capital Instruments The company is transitioning from a period of zero revenue (during the insolvency years) to active commercial operations. | Metric | FY 2023-24 (Pre-Resolution) | FY 2024-25 (Rehabilitation) | | :--- | :--- | :--- | | **Revenue from Operations** | **Nil** | **Trading Revenue Commenced** | | **Net Worth** | **Negative ₹32.52 Crore** | **Under Recalculation (Post-Infusion)** | | **Borrowing Limit** | N/A | Increased to **₹100 Crore** | | **Investment Limit** | N/A | Increased to **₹100 Crore** | **Funding Instruments:** * **CCDs:** **1,65,00,000** Unrated, Unlisted **0.01% Compulsorily Convertible Debentures** convertible at **₹10** within **18 months**. * **Equity:** **1,96,73,500** shares at a face value of **₹10**. --- ### VI. Strategic Growth Drivers * **Sector Tailwinds:** The Indian non-leather footwear segment is projected to expand **8-fold by 2030**. * **Policy Support:** The company aims to leverage the **Production-Linked Incentive (PLI)** scheme and the shift toward the organized sector driven by **BIS certification** requirements. * **Import Substitution:** Focus on **R&D** to manufacture high-value components domestically that were previously imported from China or SE Asia. --- ### VII. Risk Factors & Challenges Investors should note the following risks associated with the company’s turnaround: * **Operational Restart:** Manufacturing remains **non-operational** pending final regulatory **NOCs**. There is a risk of delays in reaching full capacity. * **Audit Disclaimers:** Statutory auditors issued a **Disclaimer of Opinion** for FY2024 due to missing records from the CIRP period, specifically regarding **₹3.52 crore** in receivables and **₹6.52 crore** in payables. * **Listing Status:** BSE suspended trading in equity shares on **December 30, 2024**, pending completion of post-CIRP corporate actions. * **Legacy Compliance:** Pending filings for **GSTR9/9C** since **FY 2020-21** and a contested BSE penalty of **₹1.24 Crore** for historical non-compliance. * **Market Competition:** Intense pressure from both unorganized local players and global giants like **Nike, Adidas, and Puma**. The company’s previous distress was notably triggered by the loss of **Puma** as a major client (which formerly represented **80%** of sales).