CLC Industries is a textile manufacturer reborn from insolvency - it was Spentex Industries until a debt-fuelled expansion and market downturn pushed it into a court-led resolution process that lasted over three years, wiping out the old shareholders and handing control to the Manjeet Group, one of India’s largest private cotton traders. The company restarted production in late 2024 with a single renovated plant, a clean balance sheet, and a simple operating logic: it draws raw cotton from its promoter group’s dominant sourcing network, spins it into yarn, and sells much of that yarn straight back into the same family of trading and processing businesses. That recurring approach - using the group’s cotton muscle to feed a focused manufacturing engine - now explains everything the company does.
Business segments
Two tightly linked businesses, one feeding the other - a yarn factory that turns the group’s cotton into spindled output, and a raw-material trading desk that keeps the plant supplied and sells surplus cotton to the wider market.
1. Cotton yarn manufacturing: the factory the group was built to feed
A single plant in Baramati spins cotton into yarn, with most of the output sold to companies inside the promoter family - the factory is effectively a captive conversion engine for the group’s cotton trade.
- One plant, restarted from zero - the Baramati facility in Maharashtra is the company’s only remaining manufacturing unit after three other plants were sold during the insolvency resolution; trial production began in September 2024 and commercial output followed in October 2024, so the factory has been running for less than a year.
- Raw material comes from the family - the company buys cotton from its holding company Manjeet Cotton and from related ginning units such as Manjeet Fibers and Keshav Ginning, which specialise in organic and speciality cotton, giving the plant access to quality lint that is hard for outsiders to secure.
- Yarn goes back to the family - customers include Manjeet Cotton, Manjeet Global, Satyam Spinners, and DEEGEE COTSYN, all entities where the Rajpal family holds directorships, partnerships or ownership; the company states its competitive pricing is the reason for high transaction volumes with these related parties.
- Job work, not just own-brand - the plant also processes yarn on a per-job basis to end-customer specifications, often routing work through Satyam Spinners, which has the technology to produce different yarn types and to further process output as required.
- A workforce rebuilt from scratch - the company blends experienced industry professionals with young talent and runs employee development programmes; the human resource division is described as treating people as the most valuable resource, which matters when restarting a plant that had been idle for years.
2. Raw-material and machinery trading: the supply-chain loop that keeps the plant spinning
The company buys and sells cotton, yarn and machinery in the ordinary course of business - this is the trading desk that procures inputs for the factory and offloads surplus to the group’s wider network.
- Cotton in, cotton out - beyond feeding its own plant, the company purchases raw cotton and sells it onward, often to the same related parties that supply the factory, creating a circular flow where the company acts as both customer and supplier to the Manjeet group’s trading entities.
- Machinery changes hands - the company also buys and sells plant and equipment, including a purchase of machinery items worth about Rs. 1.5 crore from its holding company during FY24, suggesting it trades capital goods as well as commodities.
- Pricing that wins volume - the company explicitly cites competitive pricing as the reason related-party transactions are higher than they would be with third parties, implying the trading desk operates on thin margins but high turnover within the group ecosystem.
- A unit still up for sale - the company has a second unit at Baramati (Unit I) whose plant and machinery are proposed to be sold on an “as is where is” basis, so asset disposals remain part of the trading activity as the company sheds legacy footprint.
Group structure and partners
CLC Industries is a 90%-owned subsidiary of Manjeet Cotton Private Limited, the flagship of a family-run cotton empire that spans ginning, trading and exporting - the company sits inside a web of related entities that are its suppliers, its customers and its lenders.
- The holding company is the anchor - Manjeet Cotton Private Limited took control in December 2023 when the insolvency resolution plan was implemented, receiving 95% of the equity; that stake was trimmed to 90% in March 2026 through an offer-for-sale to meet minimum public shareholding rules.
- Old shareholders were wiped out - the previous promoters’ 42% stake and the public’s 58% stake were fully cancelled; public shareholders received one new share for every hundred they held, while the old promoters got nothing.
- The family runs the show - Chairman Bhupendra Singh Rajpal built the largest cotton-ginning capacity in India from a tiny start in 1982; his son Sanchit Singh Rajpal is Managing Director and runs the export arm, which holds a substantial share of India’s cotton export trade.
- Related parties are everywhere - the company transacts with at least eleven related entities, including Manjeet Global (run by another son), Satyam Spinners (where the Chairman is a shareholder), and DV Export (a proprietorship of the Managing Director); all transactions are stated to be at arm’s length and reviewed by the Audit Committee.
- No subsidiaries, no distractions - the company has no subsidiaries, joint ventures or associates; its previous subsidiary in the Netherlands was transferred to the old promoters for one rupee as part of the resolution, leaving a clean, single-entity structure.