
Shree Ram Twistex IPO
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About Shree Ram Twistex
Shree Ram Twistex is a manufacturer of cotton yarns based in Gondal, Rajkot, Gujarat, operating exclusively in the business-to-business segment. The company manufactures compact ring spun and carded yarns, both combed and carded varieties, along with value-added products including Eli Twist yarns, compact slub yarns, and Lycra-blended yarns.
Operating from a 29,947 square meter manufacturing facility equipped with 17 compact ring-spinning machines and 27,744 spindles, the company produces 100% cotton yarns in counts ranging from Ne 8 to Ne 40. The facility operates on a three-shift basis with a production capacity of 9,855 MT per annum, serving textile manufacturers, garment exporters, and fabric processors.
The company serves both domestic and international markets, with products used in denim, terry towels, shirting, sheeting, sweaters, socks, home textiles, and industrial fabrics. Domestic sales are made across Gujarat, Rajasthan, West Bengal, Maharashtra, Tamil Nadu, Madhya Pradesh, and Punjab, while international sales are facilitated through merchant exporters.
Financials of Shree Ram Twistex
Utilisation of proceeds
Purpose | INR crores |
Funding for setting up of 6.1 MW Solar Power Plant for captive use | 7.85 |
Funding for setting up of 4.2 MW Wind Power Plant for captive use | 39.00 |
Repayment and/or pre-payment, in full or part, of certain borrowings availed by the Company | 14.89 |
Working capital requirements | 44.00 |
General Corporate Purposes | – |
Strengths
- Fully integrated spinning unit ensures quality, speed, and flexibility.
- Strong broker network and repeat customers ensure stability.
- The company has a Strategic location with expansion-ready land and strong logistics.
- The company’s consistent revenue and profit growth reflects business resilience.
- Experienced promoters and leadership drive strategic growth initiatives.
Risks
- High revenue dependence on few clients increases vulnerability.
- Heavy reliance on Gujarat heightens regional disruption exposure.
- High supplier dependence and cotton price volatility pose risks.
- Stringent quality norms expose business to reputational risk.
- Inaccurate demand forecasts may lead to costly inventory imbalances.
- Overdependence on brokers risks sales continuity and margins.
- Heavy reliance on 3 yarn types (88%+ revenue) raises risk from demand or price shocks.
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