### **Overview** Mahalaxmi Rubtech Limited (MRT) is a diversified textile and polymer-based technical textiles manufacturer with a growing focus on innovation, sustainability, and strategic business restructuring. The company operates in key industrial segments including **Polymer Based Technical Textiles & Rubber**, **Traditional Textile Processing**, and **Textile Trading**, and has recently undergone a significant demerger to sharpen its strategic focus and drive long-term value. --- ### **Core Business Segments & Operations** #### **1. Polymer Based Technical Textile & Rubber Division** - **Offset Rubber Printing Blankets**: Manufactured for sheet-fed, web, metal decor, packaging, and security printing applications. - **Technical Coated Fabrics**: Produced using coatings such as acrylics, polyurethane (PU), PVC, rubber, and other polymers. - **Applications**: - Industrial & utility: Tarpaulins, geotextiles, pollution control, bio-gas & water tank liners - Defense, healthcare, automotive, aerospace - Architectural membranes, protective clothing - **Digital Print Media Substrates**: - Eco-friendly, recyclable, PVC-free, and non-hazardous materials - Products: Back-lit, front-lit banners, hoardings, signage – used in advertising and display industries - Reflects a strategic push towards sustainable, innovative solutions #### **2. Weaving Division (Maheeka Textech)** - A high-tech, fully automated weaving unit located in Sanand, Ahmedabad - Equipped with **rapier and air jet looms**, capable of producing specialty technical fabrics - Provides integrated capabilities in warping, sizing, and weaving of cotton, polyester, bottom-weight, and blended fabrics - Serves as a key enabler for both technical and traditional textile verticals #### **3. Traditional Textiles Processing & Trading (Pre-Demerger Structure)** *Note: As per the demerger effective April 1, 2022, these businesses have been transferred to separate entities.* - **Mahalaxmi Fabric Mills Private Limited**: - Took over the **Traditional Textiles Processing** business (Narol, Ahmedabad) - Handles dyeing, bleaching, printing, and finishing of high-quality apparel and home textiles - **Globale Tessile Private Limited**: - Holds the **Trading Textiles** division - Focuses on shirting and high-value fabric trading - **Mahalaxmi Exports Private Limited**: - Wholly owned subsidiary of MRT; retained under the group structure Post-demerger, **Mahalaxmi Rubtech Limited retains only the Rubber/Technical Textiles business**, including the Weaving Division, enabling a sharp focus on high-growth, high-margin technical textiles. --- ### **Strategic Restructuring & Corporate Actions** - **Demerger (Completed April 1, 2022)**: - Executed on a "mirror image" basis to separate non-core businesses - Aims to streamline operations, improve capital efficiency, and allow dedicated management focus on each core vertical - Results in a simplified group structure with three distinct entities: 1. **Mahalaxmi Rubtech Ltd** – Rubber & Technical Textiles 2. **Mahalaxmi Fabric Mills Pvt Ltd** – Traditional Textile Processing 3. **Globale Tessile Pvt Ltd** – Trading Textiles - **Rationale for Restructuring**: - Enhance investor clarity and valuation - Enable faster decision-making and targeted investment - Facilitate focused growth and access to sector-specific opportunities --- ### **Financial & Operational Highlights (as of FY23–24 and Q1 FY24)** - **Revenue Segmentation (Q1 FY24 – Unaudited)**: - **Polymer Based Technical Textile & Rubber**: ₹1,702.02 lakh - **Traditional Textile Segment**: ₹3,327.97 lakh - **Net Sales (post inter-segment elimination)**: ₹5,012.83 lakh - **Financial Strategy**: - Focus on maintaining or improving profit margins and ROCE - Prudent liquidity and risk management amid global volatility - Minimal foreign exchange exposure due to low import dependency; hedging in place for export earnings --- ### **Growth Strategy** - **Focus on Core Verticals**: - Long-term growth target of **GDP-linked expansion** for technical textiles in India - Investment in R&D and product innovation (e.g., UV printing blankets, high-speed web applications) - **Capacity & Technology Upgradation**: - Ongoing investments under **TUFS (Technology Upgradation Fund Scheme)** - Commissioning of new projects in digital print media and advanced coating technologies - **Global Expansion**: - Leverage India’s trade policy developments and PLI support to expand export footprint - Target high-value niches in defense, aerospace, healthcare, and infrastructure