💰 Financial Performance

Revenue Growth by Segment

Not disclosed in available documents, but the company faced a forecasted 4.5% GDP contraction in FY 2020-21 which impacted overall textile demand.

Profitability Margins

Not disclosed in available documents, but the company is in default (Rating D), indicating negative net profitability and an inability to service debt obligations.

Credit Rating & Borrowing

The company is rated 'CRISIL D' and 'CARE D' (Default) for bank facilities totaling Rs. 186 Crore. It is classified as 'ISSUER NOT COOPERATING' due to failure to provide financial information for monitoring.

⚙️ Operational Drivers

Raw Materials

Cotton, polyester, viscose, modal, spun silk, wool, cashmere, and angora.

Capacity Expansion

Current installed capacity of 1,11,840 spindles as of March 31, 2017. No planned expansion disclosed due to ongoing Corporate Insolvency Resolution Process (CIRP).

Manufacturing Efficiency

Reduction in manpower and operations due to COVID-19 impact. Capacity utilization metrics are not specifically disclosed.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company aims to enhance its brand presence despite heavy competition from over 2,000 spinning mills. However, strategic growth is currently stalled as the company is undergoing Corporate Insolvency Resolution Process (CIRP) initiated in April 2021.

Products & Services

Cotton yarn, mélange, synthetics, modal, dyed products, compact yarn, flame-retardant, supima, silk, wool, cashmere, and angora blend.

Brand Portfolio

Rajvir

Market Share & Ranking

Not disclosed in available documents, but the industry is noted as highly fragmented with over 2,000 competing spinning mills.

🌍 External Factors

Industry Trends

The textile industry is facing global disruption from COVID-19 and domestic challenges like fragmented infrastructure and technology obsolescence. The industry is highly competitive with over 2,000 mills in India.

Competitive Landscape

Intense competition from over 2,000 spinning mills in India with varying spindle capacities.

Competitive Moat

The company lacks a durable moat in a fragmented industry with 'huge competition.' It attempts to differentiate through its brand, but technology obsolescence is a noted threat to sustainability.

Macro Economic Sensitivity

Highly sensitive to GDP growth, with a forecasted 4.5% contraction in FY 2020-21 expected to adversely impact the textile sector.

Consumer Behavior

Shift in demand due to the COVID-19 pandemic and economic slowdown, leading to demand contraction for non-essential textile goods.

⚖️ Regulatory & Governance

Industry Regulations

Operations are currently governed by the Insolvency and Bankruptcy Code (IBC) 2016, following the initiation of CIRP. The company also follows the Companies Act 2013.

Legal Contingencies

Corporate Insolvency Resolution Process (CIRP) was initiated by the Hon'ble NCLT, Hyderabad Bench, via an order dated April 26, 2021. The company's affairs are currently managed by an Interim Resolution Professional.

⚠️ Risk Analysis

Key Uncertainties

Inability to meet debt obligations (Rs. 186 Crore) and non-cooperation with credit rating agencies (CRISIL/CARE), which restricts forward-looking views on credit quality and financial health.

Geographic Concentration Risk

Manufacturing units are concentrated in Telangana, specifically Mahboobnagar and Tandur.

Technology Obsolescence Risk

Identified as a key industry weakness that hinders global competitiveness and operational efficiency.