Salona Cotspin Ltd Growth Catalysts - SOIC x StockScans Report

as of Aug 2026

  1. Spindle capacity expansion - 18,000 spindles at Kannampalayam commenced commercial production in January 2025, lifting capacity 71% from 25,488 spindles. At 97% utilisation, the new capacity directly converts to higher volumes and revenue, funded 75% by term loans and 25% by internal accruals.
  2. Captive wind and solar power - The Gujarat wind generator commissioned in July 2023 produced 71.44 lakh units in FY25, an 83% increase over year-ago output, while captive solar added 33.82 lakh units. Captive power cuts the mill's grid dependence and power cost, a direct margin lever in a power-intensive spinning business.
  3. Imported cotton sourcing - Raw material imports went from nil in FY24 to ₹2,460 lakh (17% of consumption) in FY25, with C.I.F. imports of ₹2,911.84 lakh. Imported cotton broadens procurement beyond indigenous supply, giving cost flexibility that supports margins when domestic prices run hot.