Vivekanand Cotspin Limited
Vivekanand Cotspin is an SME IPO engaged in cotton processing and yarn manufacturing. The company operates ginning and spinning facilities in Gujarat, producing cotton bales, seeds, and yarn for domestic and export markets.
Overview
About the Company
Vivekanand Cotspin Limited was incorporated in July 2015 and operates in the cotton processing and yarn manufacturing sector. The company runs an integrated business model encompassing cotton ginning—converting raw cotton (kapas) into cotton bales and cotton seed—and cotton spinning to produce yarn. It also trades cotton bales and yarn to meet customer demands and capitalize on market opportunities. The manufacturing facility is located in Rangpurda, Kadi, Mahesana District, Gujarat, strategically positioned near major cotton-growing regions in Maharashtra and Saurashtra. The facility has an annual installed spinning capacity of 25,536 spindles, capable of producing approximately 4,551 metric tons of cotton yarn and 8,000 tons of cotton bales per year. The company serves domestic textile hubs and exports to international markets.
Company Details
📋 Objects of Issue (Use of Proceeds)
- › Funding capital expenditure for installation of additional plant and machinery (₹5.27 Cr)
- › Meeting working capital requirements (₹11.00 Cr)
- › General corporate purposes
✅ Strengths
- ✓ Integrated operations combining raw cotton ginning with yarn spinning for operational efficiency
- ✓ Cost-effective production capabilities with timely order fulfillment
- ✓ Scalable business model enabling production optimization and economies of scale
- ✓ Strategic facility location in Gujarat's cotton belt near major growing regions
- ✓ Experienced promoter team with industry expertise in cotton processing and trading
- ✓ Established quality control systems supporting customer retention in competitive markets
⚠️ Risks
- ! Revenue significantly exposed to fluctuations in raw cotton prices and seasonal agricultural supply
- ! Substantial portion of business transactions and revenue derived from related party entities
- ! Concentrated revenue dependency on limited number of major customers
- ! Manufacturing facilities located entirely on leased premises from promoters creating operational risk
- ! Foreign exchange rate volatility affecting export revenue realizations