Vivekanand Cotspin IPO

Vivekanand Cotspin processes cotton and manufactures yarn through two linked operations: ginning raw cotton (kapas) into cotton bales and cotton seed, and spinning cotton bales into cotton yarn. It also trades cotton bales and yarn to meet customer requirements.

The company operates from its manufacturing unit at Rangpurda, Kadi, Mahesana, Gujarat. Cotton yarn contributed 52.1% of FY26 product revenue, followed by cotton bales at 38.7%, cotton seed at 6.7%, cotton yarn waste at 2.3% and others at 0.07%. The mix changed materially from FY24, when cotton bales formed 59.56% and cotton yarn 27.53% of product revenue. Manufacturing accounted for 99.01% of FY26 revenue from operations and other operating revenue accounted for 0.99%.

Domestic sales represented 89.7% of FY26 product revenue and international sales represented 10.2%. Gujarat alone contributed 81.21%. Export revenue was ₹41.37 crore across Bangladesh, China, Indonesia, Portugal, South Africa and Vietnam, compared with ₹31.91 crore, or 9.02% of product revenue, in FY24. The raw cotton is generally procured locally, including from the Kadi and Saurashtra regions.

Annual installed capacity is 8,000 MT for cotton bales and 4,551 MT for cotton yarn. Bale production increased from 6,556 MT in FY24 to 7,425 MT in FY26, lifting utilisation from 81.9% to 92.8%. Yarn production declined from 3,703 MT to 3,051 MT over the same period, reducing utilisation from 81.3% to 67.1%.

The customer base includes local fabric producers, corporate buyers, textile manufacturers, distributors and overseas markets. The top ten customers accounted for 51.1% of the relevant FY26 revenue base, down from 88.7% in FY24. Ambica Cotseeds Limited, a related entity with export infrastructure and customer relationships, serves as a channel through which cotton yarn and cotton bales are sold to international customers.