AKI India Limited is a prominent Indian manufacturer and trader specializing in the leather industry. The company operates an integrated value chain that spans from raw material processing to the production of finished leather goods for both domestic and international markets. Headquartered in the leather hub of **Kanpur/Unnao, Uttar Pradesh**, the company has transitioned from a regional player to a global entity with a presence in the **United Kingdom** and strategic partnerships across Europe. --- ### **Corporate Structure and Global Footprint** The Group operates through a parent company in India, a wholly-owned subsidiary in the UK, and a specialized joint venture to manage its diverse manufacturing and trading interests. | Entity | Relationship | Nature of Operations | | :--- | :--- | :--- | | **AKI India Limited** | Parent Company | Manufacturing and trading of Leather & Leather Goods. | | **AKI UK Limited** | Subsidiary | International operations, market presence, and global distribution. | | **AKI Castil Shoes LLP** | Joint Venture | Specialized footwear manufacturing (operational as of **February 2026**). | The company’s primary production facilities are strategically located in **Jajmau, Kanpur** and **Akrampur, Unnao**, allowing it to leverage the established ecosystem of the Uttar Pradesh leather cluster. --- ### **Integrated Value Chain and Manufacturing Excellence** AKI India follows a single-segment business model focused exclusively on **Leather & Leather Goods**. Its operational model is defined by high-tier processing capabilities and a commitment to international quality standards. * **Category C Operations:** The company possesses the technical capability to process **raw hide/skin into finished leather**, ensuring quality control throughout the production cycle. * **LWG Gold Rating:** In **December 2025**, the company achieved the **LWG Gold Rating (Version 7.2.4)**. This is the highest level of environmental stewardship recognized globally in the leather industry, positioning AKI India as a preferred supplier for international brands committed to **100% LWG-certified** sourcing. * **Technological Modernization:** To maintain competitiveness, the company is investing in **automation, 3D printing, and digital design tools**. These initiatives aim to reduce labor dependence, improve precision, and meet the rising environmental standards of the global market. --- ### **Strategic Growth and Market Expansion** The company is pursuing a multi-pronged strategy to diversify its revenue streams and reduce dependence on traditional markets. * **International Partnerships:** In October 2023, AKI India entered into a **Joint Venture Agreement** with **NPS Shoes Limited (UK)**. This partnership focuses on the manufacturing and global export of high-end leather shoes. * **Geographic Diversification:** While the **European Union, USA, and Japan** remain core markets (accounting for **50-60%** of production), the company is actively exploring emerging regions in **Latin America, Africa, and Southeast Asia**. * **Direct-to-Consumer (D2C) Shift:** AKI is implementing digital strategies and e-commerce platform integrations to bypass traditional retail intermediaries, utilizing influencer tie-ups and digital marketing to enhance brand visibility. * **Government Alignment:** The company actively leverages the **Productivity Linked Incentive (PLI)** scheme and the **Indian Leather Development Programme (ILDP)** to upgrade infrastructure. It also utilizes the **100% FDI** allowance in the leather sector to attract international capital. --- ### **Financial Performance and Capital Restructuring** AKI India has undergone significant capital restructuring to fund its expansion and enhance market liquidity, culminating in its migration from the **BSE SME Platform** to the **Main Boards of both BSE and NSE** in **April 2023/2024**. #### **Comparative Financial Results** | Metric (INR Crore) | FY 2024-25 (Consolidated) | FY 2023-24 (Consolidated) | FY 2024-25 (Standalone) | FY 2023-24 (Standalone) | | :--- | :---: | :---: | :---: | :---: | | **Total Income** | **87.49** | **74.13** | **75.07** | **67.84** | | **Profit Before Tax (PBT)** | **2.67** | **1.88** | **2.62** | **1.87** | | **Net Profit (PAT)** | — | — | **1.63** | **1.36** | #### **Evolution of Capital Structure** * **Stock Split:** In June 2023, the company subdivided **1** equity share (Face Value **Rs. 10**) into **5** equity shares (Face Value **Rs. 2**). * **Authorized Capital:** Increased from **Rs. 20 Crores** to **Rs. 25 Crores** in late 2023. * **Preferential Allotments:** * January 2024: Allotted **1,88,33,679** shares at **Rs. 18.71**, raising **Rs. 35.24 Crores**. * June 2025: Paid-up capital reached **Rs. 20.64 Crore** following further warrant conversions. * **Dividend Policy:** The company currently **retains all earnings** (Nil dividend for FY 2022-23) to reinvest in growth prospects. --- ### **Banking, Credit, and Internal Controls** The company maintains a structured approach to debt and financial governance: * **Credit Facilities:** Term loans are held with **Axis Bank**, secured by first charges on factory land, buildings, and machinery at the **Jajmau** facilities. * **Promoter Support:** Loans are backed by personal guarantees from promoters, including **Mr. Asad Kamal Iraqi** and **Mr. Anwar Kamal Iraqi**. * **Internal Oversight:** Financials are prepared under **Ind AS**. The company employs a digitized internal financial control system reviewed by an internal audit cell and the **Audit Committee**. * **Liquidity Position:** Management confirms the ability to meet all liabilities falling due within **one year**. Auditors noted **no continuing defaults** on loan repayments. --- ### **Risk Management and Sustainability Framework** AKI India operates in a resource-intensive sector and has established a formal framework to mitigate operational and regulatory risks. * **Environmental Stewardship:** To counter the high **water and chemical** intensity of tanning, the company is adopting **green tanning techniques** and advanced waste management to comply with increasingly stringent domestic and international regulations. * **Competitive Mitigation:** To address pressure from **low-cost Chinese imports** and **non-leather substitutes**, the company focuses on **LWG-certified quality** and brand integrity. * **Governance and Compliance:** * **Risk Policy:** Periodically reviewed by the Board to assess and minimize operational threats. * **Audit Observations:** Management is addressing specific observations regarding the **non-provisioning of interest** on certain unsecured loans from related parties under **Section 186**. * **Share Lock-in:** Equity shares resulting from warrant conversions are subject to **ICDR Regulations** and additional mutually agreed lock-in periods to ensure price stability. --- ### **Leadership Team** * **Mr. Mohammad Ajwad:** Managing Director (Term: **Sept 2024 – Sept 2029**). * **Mr. Asad Kamal Iraqi:** Chief Executive Officer (CEO). * **Mr. Javed Iqbal:** Independent Director (Second term: **2024–2029**).