- **Ashima Ltd is a company that has walked away from its own history. For four decades it was a cotton textile manufacturer known for ‘Texcellence’, but when its factory effluent lines were cut by the municipal corporation and the courts declined to intervene, it chose not to rebuild its old identity - it closed the looms, entered real estate development using its own land, and became something else entirely. The recurring approach is balance-sheet repurposing: take land and cash that once served a manufacturing business, and redeploy them into asset-heavy real estate development and a value-investment portfolio that has consistently beaten the market.** # Business segments Three engines at different stages - a land-bank real estate play in Ahmedabad, a market-beating investment portfolio now housed in a licensed PMS, and a textile operation that has been formally shut down - each built on the assets of the one before. ## 1. Real Estate: turning factory land into homes **Two residential projects on the outskirts and in the premium corridor of Ahmedabad are converting the company’s land bank into plotted weekend villas and a luxury high-rise, with a related-party advisor running the build.** - **Land-first, not land-bought** - the division was seeded in November 2020 using the company’s own land as well as new land identified for development, with an initial investment of about Rs. 40 crores from internal cash resources, so the projects sit on a cost base that a pure-play developer starting from scratch would struggle to match. - **Two projects, two price points** - ‘Swan Lake’ is a gated community of weekend villas on roughly 90 acres at Village Agol on the western outskirts of Ahmedabad, with total estimated revenue of approximately ₹350 Crores; ‘The Sovereign’ is a 37-floor, 430 ft tower with 102 four- and five-bedroom apartments at Thaltej, carrying an estimated revenue potential of roughly ₹500 crores when completed. - **Built by a sibling entity** - Saumya Construction Private Limited acts as Development Advisor for both projects, handling technical and marketing advice and management control systems; it is a related party because the Navchintan Trust (a promoter of Ashima Ltd) holds 89.31% equity in it, and it is paid a fixed monthly fee - ₹7.50 Lacs for Swan Lake and ₹8.94 Lacs (escalating annually) for The Sovereign. - **Revenue recognised at handover** - the company books revenue from real estate at a point in time, only when the customer obtains control of the promised asset, which means cash flows and profit recognition are back-ended to project completion. - **Early traction at Swan Lake** - about 60% of the total 38,00,000 sq ft had been booked as of the FY24 report date, and the project had received applications for 100 units with expected revenue of more than Rs 150 crores by FY23, giving visibility on a material chunk of the total estimated ₹350 Crores revenue. ## 2. Investment Management: a proprietary portfolio that became a licensed business **What began as an in-house value-investment book has been moved into a wholly owned SEBI-registered Portfolio Manager that now manages money for external clients - starting with a related party.** - **A track record built in-house** - the investment division was started in April 2021 and run by Mr. Krishnachintan Parikh (an MBA from Columbia University) with a long-term, value-investment philosophy; since inception its XIRR was 27%, compared to benchmark XIRRs of 11% to 13%, and it has consistently outperformed the Sensex, Nifty and Nifty 500. - **Mark-to-market, not just realised gains** - the division’s performance is reported based on the market value of shares held at the end of the period plus profit or loss on sale and dividend income, so the reported returns reflect the full portfolio value, not just cash booked. - **Licensed to manage outside money** - in February 2025 the portfolio was moved to Ashima Capital Management Limited (ACML), a wholly owned subsidiary that received its SEBI Portfolio Manager registration in January 2025; as of March 31, 2025, ACML had total assets under management of Rs. 142 Crores. - **Paid on assets, not just performance** - ACML charges a management fee of 1% of the daily average Assets Under Management on an annual basis, creating a recurring fee stream that is independent of market direction. - **First external client is a related party** - ACML provides Portfolio Management Services to Saumya Construction Private Limited (the same entity that advises the real estate projects), with a maximum portfolio value to be managed of ₹150 Crores and a related-party transaction cap of ₹6.50 Crores per year approved by shareholders. ## 3. Discontinued Textiles: the engine that was switched off **The cotton textile business that defined the company for four decades was closed during FY25 after a cascade of regulatory and operational setbacks - its assets are being sold, its land surrendered or monetised, and its results are now reported as a discontinued operation.** - **Killed by an effluent line** - the company’s wet-manufacturing operations (dyeing and finishing) were suspended from November 2021 when the Ahmedabad Municipal Corporation disconnected the treated effluent discharge connection at the behest of a Gujarat High Court order, despite the company holding all requisite permissions; its petitions in the High Court and Supreme Court were dismissed by March 2022. - **A partial fix that couldn’t last** - during the suspension the company continued dry manufacturing and outsourced wet processes, but this involved extra costs and was never a long-term solution; a Zero Liquid Discharge plant and new Effluent Treatment Plant were eventually installed and trial operations started in late FY23, but the division never recovered its footing. - **What it used to make** - at its peak the textile business manufactured denim fabrics, readymade garments (shirts and trousers), processed textile fabrics including interlining, and a ready-to-stitch brand called ‘ICON’, with a substantial portion exported directly or sold to garment manufacturers nominated by overseas buyers. - **The shutdown is now structural** - the Board approved disposal of operational movable assets including brand names (but excluding land and building) in September 2024; the company offered to surrender 44,367.58 sq. mtrs. of land to the Ahmedabad Municipal Corporation as required by law, and in March 2025 sold land at Rakhial, Ahmedabad, admeasuring 8,893 sq. mtrs. for Rs. 48.00 Crores to an unrelated party. - **Headcount collapsed with the closure** - permanent employees fell from 239 as of March 31, 2024 to 63 as of March 31, 2025, reflecting the departure of the workforce associated with the textile activity. # Group structure and partners **Ashima Ltd is a listed holding company with one wholly owned SEBI-registered subsidiary and a tight web of related-party relationships that span both its real estate and investment management engines.** - **The subsidiary is the investment engine** - Ashima Capital Management Limited (ACML) was incorporated on 14 May 2024 as a wholly owned subsidiary, holds a SEBI Portfolio Manager registration granted on 6 January 2025, and is the entity through which all investment management and advisory services are now conducted. - **No other group entities** - as of March 31, 2024 the company had no other subsidiary, joint venture or associate company; its previous associate, Shardul Garments Private Limited, ceased to be an associate effective 30 April 2022. - **A legacy merger shaped the textile portfolio** - Ashima Dyecot Private Limited (ADPL) was amalgamated into Ashima Limited via an NCLT-sanctioned scheme effective 1 April 2019, bringing fabric processing, garment washing, readymade garments and the ‘Frank Jefferson’ retail brand into the company as a forward-integration move - a structure that has since been unwound with the textile closure. - **Saumya Construction is the common thread** - this related party (89.31% owned by the promoter-group Navchintan Trust, with the same directors and shareholders) serves as Development Advisor to both real estate projects and is also a portfolio management client of ACML, making it the counterparty on both sides of the company’s new business model. - **Leadership spans both old and new** - Mr. Chintan N. Parikh (Chairman & Managing Director, with about 41 years of experience in textiles and real estate) and Mr. Krishnachintan C. Parikh (Whole-time Director and Principal Officer of ACML) are the key managerial personnel bridging the company’s textile past and its real-estate-and-investment future; Mrs. Vanita Mathur was appointed CEO effective 1 March 2026, bringing over 30 years of group association including heading a real estate entity since 2020.