💰 Financial Performance

Revenue Growth by Segment

Jute Goods segment (Standalone) generated INR 626.68 Cr in FY25, representing a 3.07% YoY decline from INR 646.55 Cr in FY24. The Cables & Other Electrical Products segment, operated through subsidiary Fort Gloster Industries Limited, commenced operations in Q1 FY25 and is expected to contribute significantly following the securing of a INR 1,200 Cr order book.

Geographic Revenue Split

The company maintains a diversified geographic presence with export earnings of INR 177.02 Cr (approx. 28% of standalone revenue) from markets including the USA, European Union, Middle East, Australia, and Japan. Domestic sales account for the remaining approx. 72% of revenue.

Profitability Margins

Standalone Profit for the year was INR 43.73 Cr, a marginal decline of 0.78% YoY. Consolidated PAT margins declined sharply to -1.75% in FY25 from 3.75% in FY24, primarily due to a 252% increase in standalone finance costs (INR 9.16 Cr) and higher depreciation from new manufacturing facilities.

EBITDA Margin

Consolidated EBITDA was impacted by initial operational phases of subsidiaries; however, Gloster Nuvo Limited (GNL) has already achieved EBITDA positivity. Group-level profitability was constrained by high interest expenses and depreciation related to the INR 517 Cr CAPEX for FGIL.

Capital Expenditure

The group has undertaken a major debt-funded CAPEX of INR 517 Cr to upgrade and restart the manufacturing facility of Fort Gloster Industries Limited (FGIL). Additional CAPEX in Gloster Nuvo Limited (GNL) has increased total jute manufacturing capacity to 252 TPD, with a target of 300 TPD.

Credit Rating & Borrowing

Acuité has reaffirmed a long-term rating of 'ACUITE A+' (Stable) and a short-term rating of 'ACUITE A1'. Standalone finance costs rose 251.95% to INR 9.16 Cr in FY25 due to increased utilization of working capital limits and long-term debt for subsidiaries.

⚙️ Operational Drivers

Raw Materials

Raw Jute is the primary raw material, accounting for INR 332.95 Cr or 53.13% of standalone revenue in FY25, up 3.04% YoY.

Capacity Expansion

Current jute manufacturing capacity stands at 252 TPD (Tons Per Day) following the commencement of GNL operations. Planned expansion aims to reach 300 TPD upon completion of ongoing CAPEX initiatives.

Raw Material Costs

Raw material costs stood at INR 332.95 Cr in FY25, representing 53.13% of revenue. Profitability is highly sensitive to raw jute price volatility and government-imposed stock restrictions which limit the inventory mills can maintain.

Manufacturing Efficiency

Efficiency is driven by the acquisition of new machinery and modernization of the FGIL plant, aimed at reducing production costs and increasing production rates.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through business diversification into industrial cables via FGIL, which secured a INR 1,200 Cr order book to be executed over 2 years. The group is also expanding jute capacity by 19% (from 252 to 300 TPD) and expects GNL and FGIL to reach breakeven by FY26.

Products & Services

Jute goods including Hessian, Sacking, lifestyle products, and promotional made-ups; Industrial Cables and other electrical products.

Brand Portfolio

Gloster, Fort Gloster Industries.

New Products/Services

Entry into the 'Cables & Other Electrical Products' segment through FGIL, which started operations in Q1 FY25.

Market Expansion

Expansion into the industrial cable market and increasing the share of value-added jute lifestyle products in overseas markets like the EU and Japan.

Strategic Alliances

The group acquired Fort Gloster Industries Limited (FGIL) through the NCLT process to diversify its business profile.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable packaging due to carbon footprint concerns. Current mandatory packing norms (100% food grains/20% sugar) are valid until June 2025, making the regulatory outlook a critical factor for future demand.

Competitive Landscape

Competes with other jute mills in India and Bangladesh, as well as synthetic packaging manufacturers.

Competitive Moat

Durable competitive advantage derived from a 100-year operational history (since 1923), established brand equity in export markets, and recent diversification into the cable industry which provides a counter-cyclical revenue stream.

Macro Economic Sensitivity

Highly sensitive to government regulations regarding mandatory jute packaging (JPMA) and rising global demand for sustainable, biodegradable alternatives to plastic.

Consumer Behavior

Increasing consumer preference for bio-degradable and sustainable products is driving growth in the promotional and lifestyle jute goods segment.

Geopolitical Risks

Exposure to international trade dynamics in the USA and EU, which are key export destinations for lifestyle jute products.

⚖️ Regulatory & Governance

Industry Regulations

Governed by the Jute Packaging Materials (Compulsory use for Packing Commodities) Act, 1987 (JPMA) and raw jute stock control orders issued by the Jute Commissioner.

Environmental Compliance

The company focuses on reducing carbon footprints through natural fiber products; specific ESG compliance costs were not disclosed.

Legal Contingencies

The company increased its borrowing limits under Section 180(1)(c) to INR 1,000 Cr and created charges on assets to secure these borrowings.

⚠️ Risk Analysis

Key Uncertainties

Potential non-renewal or dilution of JPMA packing norms after June 2025 could impact 20-30% of demand; volatility in raw jute prices directly impacts the 53% raw material cost base.

Geographic Concentration Risk

Approx. 72% of revenue is domestic, with significant export concentration in the USA and EU.

Third Party Dependencies

High dependency on government procurement for food grain packaging and specific large clients like Salasar Techno Engineering for the cable segment.

Technology Obsolescence Risk

The group is mitigating technology risks by investing INR 517 Cr in modernizing FGIL and GNL facilities with new machinery.

Credit & Counterparty Risk

Creditor days increased to 74 days in FY25 from 16 days in FY24, while debtor days were 23 days in FY24, indicating a shift in working capital management during expansion.