A B Cotspin India forays into B2C, medical textiles

New Delhi, Oct 1 (PTI) Cotton yarn manufacturer AB Cotspin India Ltd on Wednesday announced a strategic shift to launch its own consumer brands and foray into the medical textiles segment, marking a significant diversification from its core business-to-business (B2B) model.

The announcement was made by Deepak Garg, Chairman and Managing Director, during his address at the company's 28th Annual General Meeting held on September 29, a company statement said.

Outlining the company’s transformative vision, Garg said, "We are strategically exploring a move from a B2B to a B2C model, launching trendy textile products under our own brand to build a direct connection with consumers and strengthen our market presence. Concurrently, we are entering the high-growth medical textiles sector to manufacture essential products like surgical gowns and wound care materials, which are in high demand and align with our commitment to quality and safety." This strategic diversification is backed by strong financial performance.

The company reported a 16.54 per cent growth in revenue from operations, reaching Rs 298.06 crore in FY 2024-25, up from Rs 255.76 Crore last year.

Demonstrating enhanced profitability, Profit After Tax (PAT) surged by 49.32 per cent to Rs 9.99 Crore.

The strategy also includes an increased focus on using organic cotton, investing in cotton recycling. The company's diversification strategy extends beyond textiles into real estate development.

This strategic expansion is supported by substantial investments in operational capacity and sustainability.

The company has increased its solar power capacity to 3,131 KW to reduce electricity costs and support clean energy initiatives.

Additionally, the company has added over 14,000 new spindles during the year, increasing total spindle capacity to 50,832 spindles, strengthening production capabilities for future growth.

The Board of Directors, in July this year, has approved an investment of up to Rs 1,500 crore for business expansion across India, focusing on Madhya Pradesh and Maharashtra.

This investment will include acquiring land and developing integrated facilities for spinning, ginning, and yarn manufacturing, adding 2,00,000 spindles in a phased manner.

A B Cotspin India Ltd is a textile company primarily engaged in the manufacturing of cotton yarn.

With a strong operational base in Punjab, the company has established itself as a quality-driven player.

Its shares are listed on the main boards of the National Stock Exchange (NSE) and BSE Ltd. PTI KKS DR DR