Avi Ansh Textile Limited (established in **2005**) is a vertically integrated textile manufacturer based in Punjab, India. The company has successfully transitioned from a yarn trading entity into a comprehensive manufacturer and exporter, controlling the entire value chain from spinning and knitting to garment manufacturing and retail branding. --- ### **Integrated Manufacturing Ecosystem & Vertical Expansion** The company operates a state-of-the-art facility in the **Dera-Bassi Industrial Area**, Punjab. Its evolution is marked by a strategic move from raw material processing to high-value finished goods. | Segment | Established | Infrastructure & Capacity | Core Output | |:---|:---:|:---|:---| | **Spinning** | **2012** | **26,314 Spindles**; **4,500 MT** p.a. | Combed & Carded Cotton Yarn (**20s to 40s**); Brand: **Pooja Gold** | | **Knitting** | **2022** | **23 High-speed Circular Machines**; **2,160 MT** p.a. | Greige fabrics: Single Jersey, Rib, Interlock, Terry, Fleece, Rice Knit | | **Garmenting** | **2024-25** | **175 Sewing Machines**; **1-acre** facility | Polo T-shirts, Round neck T-shirts, Leggings, Pajamas | **Operational Efficiency:** * **Daily Output:** Yarn production ranges between **12-15 MT** per day. * **Machinery:** The facility utilizes advanced technology from **Swiss, German, and Indian** providers, including inverter-motor-equipped units for **24-hour** non-stop production. * **Supply Chain:** Raw material procurement is personally overseen by Directors with over **35 years** of industry experience, ensuring quality control at the source. --- ### **Specialized Product Portfolio & Technical Specifications** The company specializes in high-quality knitted fabrics and plied yarns, categorized by knit structure and technical specifications. **1. Core Fabric Portfolio:** * **Single Jersey:** Flat loop structure on the front, reverse on the back; knitted on a single row of needles. * **Rib Knit:** Reversible double-faced fabric with perpendicular ribs; used for neckbands, cuffs, and hems. * **Interlock:** Double-knit fabric with a honeycomb-like appearance where both sides are identical. * **Performance & Textured Fabrics:** Includes **Dry Fit, Lycra Blends, Pique, Rice Knit, Dot Knit, Waffle, and Fleece**. **2. Yarn Specifications (Count Range):** The company maintains standardized count ranges across its primary production lines: | Process Type | Count Range (Ne) | | :--- | :--- | | **Carded Knitting** | **Ne 20/1 to Ne 32/1** | | **Carded Weaving** | **Ne 20/1 to Ne 32/1** | | **Carded TFO'd (Two-for-One)** | **Ne 20/2 to Ne 32/2** | --- ### **Strategic Growth: D2C Branding & Retail Partnerships** Avi Ansh is pivoting toward a higher-margin business model by reducing reliance on bulk yarn sales and increasing focus on finished apparel. * **B2B Partnerships:** The company has secured manufacturing contracts with major Indian retail chains, including **Vishal Mega Mart** and **V Mart**. * **Proprietary Brand ('Ten by Two'):** Launching a Direct-to-Consumer (D2C) brand focusing on essential apparel. The brand is slated for a full launch on **Amazon** and other online portals by **2026**. * **Capacity Targets:** Management aims to **double garment manufacturing capacity by 2026** to meet rising demand from both private label and own-brand segments. --- ### **Capital Structure & IPO Performance** In **September 2024**, the company successfully listed on the **NSE EMERGE (SME)** platform, significantly strengthening its equity base. **IPO Details:** * **Total Funds Raised:** **₹25.99 Crore** * **Issue Price:** **₹62** (Face Value **₹10** + Premium **₹52**) * **Shares Issued:** **41,92,000 Equity Shares** * **Post-IPO Paid-up Capital:** **₹13.98 Crore** (1,39,76,930 shares) **Financial Performance (as of March 31, 2025):** * **Profit Attributable to Shareholders:** **₹179.6 Lakhs** (compared to **₹331.35 Lakhs** in FY24). * **Basic/Diluted EPS:** **₹1.51**. * **Utilization of Proceeds:** **₹13.73 Crore** of the **₹20.12 Crore** working capital target has been deployed. * **Credit Rating:** Reaffirmed at **IVR BBB- / Stable** by Infomerics in **March 2026**. --- ### **Sustainability & Cost-Efficiency Initiatives** To mitigate rising energy costs and improve ESG standing, the company is investing heavily in renewable energy. * **Solar Integration:** Installation of an **1,800.10 KWP** (1.8 MW) rooftop solar plant at the Mohali unit in partnership with **Tata Power Solar**. * **Impact:** The plant is expected to generate approximately **15%** of the facility's daily energy requirements. * **Timeline:** Expected to be fully operational by **September 2026**. * **Energy Conservation:** Use of inverter motors to control power frequency based on variable loads, further reducing electricity consumption. --- ### **Market Outlook & Sectoral Tailwinds** The company is positioned to benefit from a recovery in the Indian textile sector: * **Revenue Growth:** Anticipating **7-9%** growth in the cotton yarn segment for **FY26**, driven by a rebound in exports to China and domestic demand for Ready-Made Garments (RMG). * **Global Shifts:** Capitalizing on the **"China Plus One"** strategy as global buyers diversify sourcing. * **Policy Support:** Leveraging government schemes such as **PLI, PM MITRA**, and the anticipated **India-UK Free Trade Agreement (FTA)**. --- ### **Risk Factors & Mitigation Strategies** **1. Operational & Regional Risks:** * **Infrastructure:** The Dera-Bassi unit faces frequent electricity outages. The **1.8 MW solar plant** is the primary mitigation strategy for these disruptions. * **Labor:** The industry faces localized labor shortages; the company counters this with automated machinery to reduce manual dependency. **2. Financial & Contingent Liabilities:** * **Debt Dispute:** A minor outstanding term loan of **₹9.47 Lakhs** with Sundaram Finance is currently in dispute over pre-closure charges, with settlement expected by **December 2025**. * **Guarantees:** The company holds a contingent liability of **₹2,103.13 Lakhs** related to a corporate guarantee for **Avi Ansh Enterprises Limited**. **3. Market & Commodity Risks:** * **Cotton Volatility:** Managed through multi-vendor sourcing and strategic inventory leveling. * **Global Competition:** China holds a **62%** share in global polyester yarn; Avi Ansh mitigates this by focusing on **100% cotton** and value-added knitted fabrics where India maintains a competitive edge. * **Currency Exposure:** Minimal foreign exchange risk; the company relies on natural hedges and management monitoring rather than derivative instruments.