**CLC Industries Limited** (formerly **Spentex Industries Limited**) is an Indian textile manufacturer currently undergoing a strategic turnaround. After a prolonged **Corporate Insolvency Resolution Process (CIRP)** initiated in **January 2020**, the company has emerged under the leadership of the **Manjeet Group**. With a restructured balance sheet and a shift in operational focus toward the cotton-rich belt of Maharashtra, the company is transitioning from a period of dormancy to active manufacturing and trading. --- ### **Strategic Rebirth: The Manjeet Group Acquisition** Following the **NCLT** approval of a Resolution Plan on **May 12, 2023**, the company became a subsidiary of **Manjeet Cotton Private Limited**. This transition has integrated CLC Industries into one of India’s largest cotton ecosystems. * **New Ownership:** The consortium of **Manjeet Cotton Private Limited** and **Vitthal Corporation Limited** took control following a total payment of **₹150 Crores**. * **Promoter Stake:** The new promoters hold a **95.00%** stake in the company. * **Management Overhaul:** A new board was constituted on **August 31, 2023**. Key leadership includes **Mr. Shrutisheel Jhanwar** (Whole Time Director & CFO), tasked with financial stabilization and risk mitigation. * **Geographic Realignment:** In **September 2025**, the company officially moved its registered office from **New Delhi** to **Chhatrapati Sambhajinagar (Aurangabad), Maharashtra**, to centralize management near its primary production assets. --- ### **Manufacturing Infrastructure & Operational Status** The company has consolidated its manufacturing footprint to focus on high-efficiency output, moving away from obsolete legacy units. | Feature | Details | | :--- | :--- | | **Primary Facility** | **D-48, Baramati MIDC, Baramati, Pune, Maharashtra** | | **Facility Area** | **70,000 square meters** | | **Installed Hardware** | **32,400 spindles** | | **Production Capacity** | Approx. **11.50 metric tons per day** | | **Core Product** | **High-quality Cotton Yarn** | **Operational Timeline:** * **Trial Runs:** Conducted in **September 2024**. * **Commercial Production:** Officially commenced on **October 14, 2024**. * **Supply Chain:** The company leverages the **Manjeet Group’s** historical turnover of **₹5,000 Crores** to secure raw material and market access. --- ### **Capital Restructuring & Shareholder Impact** The NCLT-mandated Resolution Plan resulted in a drastic reorganization of the company’s equity structure to address historical insolvency. * **Extinguishment of Old Equity:** The **100%** shareholding of the erstwhile promoters was cancelled without payment. * **Public Share Capital Reduction:** Existing public equity was reduced by **99%**, shrinking from **₹51.97 Crores** to **₹51.97 Lakhs**. * **Share Swap Ratio:** New shares were issued to public shareholders at a ratio of **1:100** (one new share for every 100 held as of **January 12, 2024**). * **Current Capital Base:** The paid-up capital stands at **₹10.39 Crores** (divided into **1,03,94,680** equity shares of **₹10** each), against an authorized capital of **₹121 Crores**. --- ### **Asset Monetization & Liquidity Strategy** A pillar of the current strategy is the "slump sale" of non-core or underperforming assets to generate working capital and deleverage the balance sheet. | Undertaking | Purchaser | Status | | :--- | :--- | :--- | | **Butibori Undertaking** | Harman Cottex & Seeds Pvt Ltd | Transferred | | **Solapur Undertaking** | Pashchim Maharashtra Textiles Pvt Ltd | Transferred | | **Pithampur Undertaking** | Neo Stretch Private Limited | Transferred | | **Unit I (Baramati)** | TBD | **Special Resolution Pending** | **Rationale for Baramati Unit I Sale:** This unit has been shut since **2017** with machinery dating back to **1993**. As the investment represents over **20% of the total net worth**, the sale is intended to fund modern operations and repay bank loans. --- ### **Financial Performance & Recovery Metrics** After reporting **Nil turnover** from **FY 2021-22** through **FY 2023-24**, the company has successfully restarted revenue generation. | Metric (Standalone) | FY 2024-25 (Est/Partial) | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Revenue** | **₹61.62 Crores** | **₹0** | **₹0** | | **Net Worth** | *Not Disclosed* | **₹5,623.83 Lakhs** | **(₹54,828.74 Lakhs)** | | **Profit/(Loss) After Tax** | *Not Disclosed* | **(₹3,428.08 Lakhs)** | **(₹1,094.42 Lakhs)** | | **Debt-to-Equity Ratio** | *TBD* | **51.72%** | **-97.32%** | *Note: All secured and unsecured liabilities existing as of **January 3, 2020**, were extinguished per the NCLT order, with the balance transferred to **Capital Reserve**.* --- ### **Risk Factors & Audit Qualifications** Investors should note that the company is in a "stabilization phase" and carries significant legacy risks. **1. Audit Qualifications & Missing Records:** * **Unverified Assets:** **₹3.41 Crore** in Fixed Deposit receipts are missing; **₹40.62 Lakhs** in cash was written off as it was not handed over by previous management. * **Doubtful Recoveries:** Auditors highlighted **₹40.03 Crore** in doubtful recovery of subsidies and deposits for which no provision has been made. * **Confirmation Issues:** Balances for Trade Receivables (**₹2,072.75 Lakhs**) and Payables remain subject to third-party reconciliation. **2. Operational & Market Risks:** * **Raw Material Volatility:** Exposure to cotton prices, which peaked at **₹284 per kg** in 2024. * **Related Party Dependency:** The company has a **₹175 Crore** transaction limit for FY 2025-26 with its holding company for material supply. * **Global Competition:** Intense pricing pressure from **China, Bangladesh, and Taiwan**. **3. Regulatory & Compliance Risks:** * **Pending Approvals:** Listing approvals and the waiver of **SOP fines** are still pending with the **BSE** and **NSE**. * **Going Concern:** Auditors continue to flag material uncertainty regarding the company's ability to continue as a going concern due to accumulated losses and eroded capital. --- ### **Future Growth Levers** * **Green Energy Integration:** The company is exploring opportunities in **Andhra Pradesh**, targeting the state's potential for solar, wind, and pumped storage to reduce high energy costs. * **Operational Realignment:** By disposing of obsolete technology (like Baramati Unit I) and focusing on the **32,400 spindles** at its revamped facility, the company aims to achieve global cost-competitiveness. * **Debt Ceiling:** Shareholders have approved an increased borrowing limit of **₹125 Crore** to fuel the next phase of operational scaling.