Nahar Spinning Mills Limited is a premier Indian textile powerhouse specializing in the manufacture of world-class yarns and hosiery knitwear. Operating as a vertically integrated entity, the company has established a formidable presence in both the domestic Indian market and across **35 countries** globally. As a **Four Star Export House** (certified through **August 2028**), Nahar is a critical link in the global textile supply chain, serving high-end segments including denim, bed linen, and premium shirting. --- ### **Manufacturing Footprint & Asset Base** The company operates a sophisticated network of **8 manufacturing plants** strategically located in the textile hubs of Punjab and Madhya Pradesh. | Plant Location | Unit Name / Focus | Region | | :--- | :--- | :--- | | **Ludhiana (3 Sites)** | Industrial Area-A & Dhandari Kalan | Punjab | | **Mandideep** | Spinning Unit (Simrai) | Madhya Pradesh | | **Lalru & Lehli** | Spinning Unit | Punjab | | **Jalalpur** | Spinning Unit | Punjab | | **Jodhan** | Rishab Spinning Mills | Punjab | | **Jitwal Kalan** | Nahar Fibres | Punjab | **Current Production Capacity:** * **Spindles:** 5,73,408 * **Rotors:** 1,080 * **Airjet Spindles:** 768 * **Output Growth:** Recent modernization at the Jitwal Kalan unit added **40,000 tons p.a.** in production capacity. --- ### **Product Portfolio & Specialized Offerings** Nahar distinguishes itself through a diverse range of value-added and specialty yarns designed to meet the rigorous standards of global fashion brands. * **Specialty Yarns:** Compact Yarn, Multi Slub, Injected Slub, Duel Slub, Vario SIRO, Multi Count & Multi Twist, Zero Twist, and Melange Yarn. * **Synthetic & Blends:** 100% Polyester (Virgin & Recycled) Ring Spun Yarn, Polyester-Cotton blends, and Recycled Polyester blends. * **Sustainable Range:** 100% Organic Cotton, Organic-in-conversion cotton, **BCI (Better Cotton Initiative)** yarn, and **Regenagri** Cotton. * **Quality Standards:** 100% of dyes and chemicals are **Azo-free**, **NPEO/APEO-free**, and **Formaldehyde-free**. --- ### **Strategic Modernization & "China Plus One" Readiness** The company is executing an aggressive capital expenditure strategy to capitalize on the global shift in textile sourcing. By upgrading to ultra-modern machinery, Nahar aims to improve margins through energy efficiency and superior product quality. | Project Component | Investment | Status / Timeline | | :--- | :--- | :--- | | **Spinning Unit Modernization** | **₹325 Crores** | Completion by **FY 2027-28** | | **Lalru Unit Expansion** | **₹122 Crores** | **Completed (Aug 2024)** | | **Airjet Spindles (768 units)** | **₹98 Crores** | **Completed (Aug 2024)** | | **Solar PV Expansion (11 MW)** | **₹25 Crores** | In-progress | | **ZLD Plant (Dhandari Kalan)** | **₹15 Crores** | Commissioning **Dec 2025** | **Technological Edge:** The adoption of **Airjet Spinning** technology has allowed the company to achieve **98% efficiency** while significantly lowering energy consumption per unit of output. --- ### **Financial Performance & Recovery Profile** After a challenging FY 2023-24 characterized by high raw material costs, the company returned to profitability in FY 2024-25. **Key Financial Metrics (Consolidated):** | Particulars (₹ in Crores) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Income** | **3,318.91** | 3,065.56 | 2,841.22 | | **Export Sales** | **1,634.53** | 1,625.16 | 1,135.16 | | **EBITDA** | **195.79** | 99.11 | 257.12 | | **Net Profit / (Loss)** | **12.35** | (51.08) | 110.79 | | **Export % of Turnover** | **53.28%** | 40.58% | 39.95% | **Credit & Debt Profile:** * **Credit Rating:** **CRISIL A/Negative** (Long-term); **CRISIL A1** (Short-term). * **Borrowing Limits:** Recently increased from **₹1,500 Crores** to **₹2,000 Crores** to support expansion. * **Total Borrowings:** **₹1,100.88 Crores** (as of March 31, 2025). * **Interest Coverage Ratio:** Recovered to **1.22** in FY 2024-25 from **0.9** in the previous year. --- ### **Sustainability & Resource Stewardship** Nahar has integrated Environmental, Social, and Governance (ESG) principles into its core operations, focusing on renewable energy and circularity. * **Renewable Energy:** Currently, **34%** of total energy is from renewable sources. Total rooftop solar capacity is targeted to reach **25.47 MW** (up from **14.47 MW**). * **Sustainable Sourcing:** Over **50%** of fiber consumed includes sustainable variants (Organic, BCI, Recycled Polyester, Tencel, and Bamboo). * **Water Management:** Operates **6 Sewage Treatment Plants** (2,175 KL/day) and a **600 KLD Zero Liquid Discharge (ZLD)** plant at Mandideep. * **Waste Circularity:** Reuses **3.37%** of production waste back into the manufacturing process. --- ### **Risk Factors & Mitigation Strategies** The company operates a dedicated Risk Management Committee to navigate a volatile global textile landscape. * **Raw Material Volatility:** Cotton accounts for **~60%** of total costs. Nahar manages this through a strategic procurement policy to mitigate the impact of fluctuating domestic Minimum Support Prices (MSP) and monsoon-dependent yields. * **Geopolitical & Trade Barriers:** The company faces a **25% U.S. Trade Tariff** on certain imports and rising freight costs due to Red Sea disruptions. It mitigates this by diversifying its export base across **35 countries** and leveraging **Free Trade Agreements (FTAs)** with the UAE and Australia. * **Currency Risk:** With exports exceeding **53%** of revenue, the company uses partial hedging and foreign currency loans (**FCNR(B)**) to manage exchange rate fluctuations. * **Legal Contingencies:** The company is currently contesting **₹2,069.42 Lacs** in contingent liabilities related to GST, Excise, and Income Tax demands. * **Capital Recovery:** Management is actively pursuing the refund of **₹3,797.60 Lacs** from a failed textile unit auction and **₹939.51 Lacs** from a cancelled Dubai property project. --- ### **Research, Development & Innovation** Nahar maintains a consistent focus on R&D to stay ahead of market trends. In FY 2023-24, the company invested **₹18.01 Crores** in R&D (Capital and Recurring). * **Focus Areas:** Waste reduction, quality consistency, and the development of "New Age" fibers like Liva, Modal, and Bamboo. * **Customer Integration:** The company utilizes buyer audits and a dedicated design team to align product development with global fashion cycles, ensuring that **100%** of products meet international environmental and safety parameters.