Overview:
Established in 2013 Axita Cotton (ACL, The Company) is a manufacturer and exporter of international quality Cotton Bales & Cotton Yarn.
Business Overview:
Company was incorporated in year 2013. Company’s main business is Ginning and Pressing of Seed Cotton (Kapas) on job work basis and production of cotton bales and cotton seeds. It also trades Kapas, cotton bales and cotton seeds.
Products & Services:
a) Trading Products: Kapas, Cotton Bales (SANKAR-6, MCU-5, V-797, DCH-32, J-34), Cotton Seeds, Cotton Yarn.
b) Specialised Cotton: BCI Cotton, Organic Cotton
c) Job Work: Ginning and Pressing of Kapas
Manufacturing Capacity:
The Company have it’s cotton, ginning and pressing plant at Kadi in Mahesana district of Gujarat. , where it has 48 Ginning and Pressing Machines with a production capacity of ~87,600 MTPA of Seed Cotton. The plant is close to rich cotton growing areas - Saurashtra and other regions of Gujarat.
Company’s Product Presence:
Bangladesh, China, Indonesia, Thailand, Vietnam, Europe, Morocco, Singapore
Global Clientele:
DongKhanh, Hoatho, Square Textiles, Roshawa, Pacific Group, Amber, Ecom, Amsan, Olam, Nassa Group, Maksons Group, KPR Mill, etc.
Revenue Breakup:
Sales ~99%
Other Operating Revenue ~1%
Bonus & Buyback Issue:
In May,23, company approved Buyback of 9 Lakh fully paid-up Equity Shares of the company for an amount of Rs. 5.04 Crore at Rs. 56/-. In Dec,23, Company allotted 6,52,15,008 bonus shares in the ratio of 1:3
Revenue breakup by Product:
Cotton Bales : 85.91% (Domestic: ~83% & Export: ~17%)
Cotton Yarn : 12.91% (Domestic: ~98% & Export: ~2%)
Other Cotton Consultancies : 0.78% (Full Domestic)
Industry
India is the world’s second-largest producer of textiles and garments. It is also the sixth-largest exporter of textiles spanning apparel, home and technical products. India has a 4% share of the global trade in textiles and apparel.
The textiles and apparel industry contribute 2.3% to the country’s GDP, 13% to industrial production and 12% to exports.
India’s textile and apparel exports (including handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY. Total textile exports are expected to reach US$ 65 billion by FY26.
The Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. The Indian apparel market stood at US$ 40 billion in 2020 and is expected to reach US$ 135 billion by 2025.
The Rs. 10,683 crore (US$ 1.44 billion) PLI scheme is expected to be a major boost for the textile manufacturers. The scheme proposes to incentivise MMF (man-made fibre) products.
Production of yarn grew to 5,890 million kgs in FY19 from 5,665 million kgs in FY16. Cotton Yarn market can be sub-divided on the basis of applications which include Apparel, Home Textiles, Industrial Textiles, Others. Cotton Yarn market size is estimated to be worth USD 81080 million in 2023 and is forecast to a readjusted size of USD 100,240 million by 2028 with a CAGR of 3.6% during the forecast period 2023-2028.
Company Perspective:
Axita Cotton is a manufacturer and exporter of international quality Cotton Bales & Cotton Yarn. The Company have it’s cotton, ginning and pressing plant at Kadi in Mahesana district of Gujarat. The plant is close to rich cotton growing areas if Saurashtra and other regions of Gujarat.The Company had repaid all its Loans received from Banks in the past and that this has earned us the reputation of being a debt-free Company.
Disclaimer:
I am not a SEBI registered advisor and this report is solely for educational purposes. The information provided does not constitute any form of recommendation. Therefore, please conduct your own analysis before engaging in any trades or consult your financial advisor. I holds no responsibility for your intended decisions and any resulting financial losses.
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