RAJVIR - Rajvir Inds.
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.
Geographic Revenue Split
Not disclosed in available documents.
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.
EBITDA Margin
Not disclosed in available documents.
Capital Expenditure
Not disclosed in available documents.
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.
Import Sources
Not disclosed in available documents.
Key Suppliers
Not disclosed in available documents.
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).
Raw Material Costs
Not disclosed in available documents.
Manufacturing Efficiency
Reduction in manpower and operations due to COVID-19 impact. Capacity utilization metrics are not specifically disclosed.
Logistics & Distribution
Not disclosed in available documents.
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
New Products/Services
Not disclosed in available documents.
Market Expansion
Not disclosed in available documents.
Market Share & Ranking
Not disclosed in available documents, but the industry is noted as highly fragmented with over 2,000 competing spinning mills.
Strategic Alliances
Not disclosed in available documents.
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.
Geopolitical Risks
Not disclosed in available documents.
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.
Environmental Compliance
Not disclosed in available documents.
Taxation Policy Impact
Not disclosed in available documents.
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.
Third Party Dependencies
Not disclosed in available documents.
Technology Obsolescence Risk
Identified as a key industry weakness that hinders global competitiveness and operational efficiency.
Credit & Counterparty Risk
Not disclosed in available documents.