AB Cotspin India Spins Up to 50,832 Spindles, Targets Record Growth in FY25

A B Cotspin India Ltd has made a significant surge in its production capacity by boosting its spindle capacity to a whopping 50,832 spindles. This growth, fueled by the strategic purchase of SEL Textiles Ltd, represents a 40% spike from its earlier capacity and readies the Punjab-based textile manufacturer for strong growth in the next fiscal year.

 

Capacity Growth:

The spindle capacity of the company has increased from 36,200 to 50,832 spindles following the SEL acquisition. The upgradation is set to considerably increase production volumes and aid in addressing growing demand for high-quality cotton yarn.

 

Expansion Plans:

Benefiting from a strong order book and increased capacities, AB Cotspin India is looking to register 8–10% growth in turnover with the target of ₹275–290 crore in FY25. The company recently bagged an order for 300 MT cotton yarn and has a healthy pipeline of around 700 MTs worth ₹21 crore.

 

Financial Performance:

For FY24, sales stood at ₹255.77 crore and EBITDA at ₹27.64 crore. With the added capacity, the sales estimate for FY25 is at ₹260–275 crore, with EBITDA at ₹29–32 crore.

 

Clientele & Market Reach:

AB Cotspin caters to leading domestic and international customers, such as Shivalik Print Ltd, Parmeshwari Silk Mills, and international brands like IKEA, Walmart, and JC Penney, further consolidating its brand image as a go-to supplier.

 

Strategic Focus:

AB Cotspin India's dedication to quality, innovation, and sustainability and its integrated operations within Punjab's cotton belt guarantee efficient raw material sourcing and market access.

 

With this capacity expansion, AB Cotspin India is well-placed to take advantage of increased textile demand, consolidate its market position, and achieve its ambitious growth plans for FY25.

 

Sources: Business India, Rediff Money, Infomerics Ratings, The Machine Maker