Established in **1955**, The Indian Card Clothing Company Limited (**ICC**) is a specialized engineering firm and a pioneer in the manufacture of card clothing and carding solutions for the textile spinning industry. The company is a subsidiary of **Multi Act Industrial Enterprises Ltd., Mauritius**, which holds a **67.33%** stake. Historically centered in Pune, the company has recently undergone a significant corporate realignment, consolidating its manufacturing in **Himachal Pradesh** and pivoting its business model toward high-growth technical textiles and strategic real estate monetization. --- ### **Core Business Segments & Market Dynamics** ICC operates through two distinct business verticals: **Card Clothing** (Manufacturing) and **Realty** (Asset Management). #### **1. Card Clothing & Textile Engineering** The primary business involves manufacturing "Card Clothing"—precision-engineered fine wire points used in carding machines to clean and individualize fibers before they are spun into yarn. * **OEM Segment:** ICC supplies card clothing for new machinery. This segment is highly consolidated, with **Rieter**, **Trützschler**, and **LMW** controlling over **97%** of the market. * **Re-clothing (Replacement) Segment:** This provides a recurring revenue stream as wires wear out and require replacement. ICC competes here against global leaders like **Groz-Beckert** and OEM-affiliated brands such as **Graf**, **TCC**, and **LCC**. * **Service Revenue:** Generated through **Annual Maintenance Contracts (AMCs)**, technical servicing, and the sale of carding machine spares. #### **2. Realty Segment** The company manages a portfolio of commercial properties, generating revenue through rental income from third and related parties. In recent years, this segment has become a primary vehicle for capital unlocking through the divestment of non-core assets. --- ### **Product Innovation & Specialized Applications** ICC focuses on **in-house R&D** (expending **₹12.43 Lakh** in FY 2024-25) to develop import-substitution products and specialized wires for emerging sectors. | Segment | Key Products & Technical Developments | | :--- | :--- | | **Cotton Spinning** | **High PPSI (Points Per Square Inch) Tops** designed for fine and superfine cotton mixing to improve output quality. | | **Technical Textiles** | Specialized wires for **Medical textiles** and **Non-woven cards** (morel and flat tip) designed to minimize fiber rupture. | | **Recycling** | New wire profiles and geometries for **recycled fibers** and natural fibers like **Jute** to enhance opening action. | | **High-Speed Carding** | The **ProLyf** range, specifically engineered for high-production machines, identified as the industry's primary growth driver. | | **Service Machinery** | Automated cleaning and maintenance machines for both short-staple and wide-width non-woven cards. | --- ### **Manufacturing Excellence & Technology Integration** The company has centralized its production to optimize the supply chain and implement advanced manufacturing protocols. * **Primary Facility:** Located in **Nalagarh, Himachal Pradesh**. The plant is **ISO 9001** certified and operates on **LEAN manufacturing** principles, achieving an 'on-time in full' (**OTIF**) target of **98%**. * **Digitalization:** Integration of **online digital checking devices**, **CNC-controlled machines**, and **Servo mechanism systems** to ensure real-time measurement of technical parameters and reduce production wastage. * **Metallurgical R&D:** Collaboration with steel manufacturers to develop new metallurgy for **metallic wires**, aiming to improve longevity and standardize alternate raw material suppliers. * **Sustainability:** The Nalagarh plant maintains **zero water discharge** and has optimized heat treatment furnace batch sizes to conserve energy. --- ### **Group Structure & Global Footprint** ICC maintains a presence in major textile hubs including Madurai, Coimbatore, Ludhiana, and Ahmedabad, alongside a dedicated sales and service office in **Turkey**. | Entity | Ownership | Status / Activity | | :--- | :--- | :--- | | **The Indian Card Clothing Co. Ltd.** | Parent | Manufacturing (India) & Realty | | **Garnett Wire Limited (GWL)** | **100% Subsidiary** | UK-based; specializes in carding solutions for the European market. | | **ICC International Agencies Ltd.** | **100% Subsidiary** | Trading/Servicing; **Operations wound down** as of March 31, 2025. | --- ### **Financial Performance & Asset Monetization** The company’s recent financial profile is characterized by a surge in profitability driven by the sale of real estate, offsetting headwinds in the textile manufacturing sector. **Comparative Financial Summary:** | Metric (₹ Crore) | FY 2024-25 (Consolidated) | FY 2023-24 (Consolidated) | | :--- | :---: | :---: | | **Total Revenue** | **85.92** | **75.38** | | **Profit After Tax (PAT)** | **91.87** | **7.97** | **Key Financial Developments:** * **Exceptional Gains:** Profitability in FY 2024-25 was bolstered by a **₹66.83 crore** gain from the sale of commercial buildings in **Powai, Mumbai** (Total sale value: **₹91 crore**). * **Coimbatore Divestment:** Sold freehold land and workshop in May 2025 for **₹11.01 crore**, yielding a profit of **₹10.97 crore**. * **Strategic Reinvestment:** Approved a **₹25.00 crore** investment in **CFM Asset Reconstruction** and acquired 5 commercial units in **Jangid Trinity, Mumbai** for **₹15.49 crore**. * **Subsidiary Turnaround:** **Garnett Wire (UK)** achieved a turnaround with a profit of **£14,374** on revenue of **£781,435**. --- ### **Strategic Restructuring & Corporate Actions** ICC is currently undergoing a period of structural transition to reduce administrative overhead and rationalize its balance sheet. * **Share Consolidation:** A petition is pending with the **NCLT** to increase the nominal value of equity shares from **₹10** to **₹2,000** (a **200:1** ratio). This move provided an exit for **~8,000 small shareholders** (representing **6.23%** of capital). * **Operational Consolidation:** In **August 2023**, the company closed its Bhosari corporate office and shifted its registered office to **Mundhwa, Pune**. * **Regulatory Settlements:** Utilized the **DGFT Amnesty Scheme** in 2023 to settle a **2012-13** EPCG license default, paying **₹1.37 crore** in customs duty. * **Leadership Transition:** **Mr. Sanjeevkumar Karkamkar** was appointed **Executive Director and CFO** in **April 2025** following executive resignations. --- ### **Risk Factors & Outlook** Management estimates a complete turnaround of the card clothing division will take **4 years**, contingent on capital expenditure for technology upgrades. * **Textile Industry Slowdown:** A **22% decline** in overall sales reflects the broader crisis in the spinning sector, where high cotton prices (**53% increase**) and low yarn demand have compressed margins. * **Geopolitical & Export Risks:** Political unrest in **Bangladesh** and punitive tariffs in the **USA** threaten export volumes. Freight costs have surged **40%** due to Red Sea conflicts. * **Raw Material Vulnerability:** High dependency on imported alloy steel makes the company vulnerable to **Quality Control Orders (QCO)** and global price volatility. * **Competitive Pressure:** Intense competition from low-cost **Chinese manufacturers** in South-East Asia and European OEMs in the high-speed segment. * **Internal Controls:** Auditors issued a **Disclaimer of Opinion** in August 2024 regarding internal financial controls, citing the ongoing restructuring of finance and support functions.