Vivekanand Cotspin

About the Company

Vivekanand Cotspin Limited operates in the cotton processing and yarn manufacturing industry, focusing on the ginning of raw cotton (kapas) into cotton bales and cotton seed, alongside the spinning of cotton bales into cotton yarn. Additionally, the company engages in trading cotton bales and cotton yarn to service customer requirements and optimize business opportunities. It generates revenue primarily from selling manufactured and traded cotton yarn, cotton bales, cotton seed, and cotton yarn waste. The business operates through its manufacturing facility located in Kadi, Gujarat. To support its production activities, the facility maintains an annual installed spinning capacity of 25,536 spindles, capable of spinning 4,551 metric tons of cotton yarn per year. The company services domestic customers across regional textile hubs and caters to international markets through export sales.

Strengths

• Integrated operations combining raw cotton ginning and yarn spinning processes.
• Strategic manufacturing unit location in Kadi, Gujarat, within a cotton belt.
• Production capability covering yarn, bales, seeds, and yarn waste by-products.
• Operational reach catering to both domestic and international export buyers.
• Promoter team with domain experience in cotton processing and trading operations.

Risks

• Revenue is heavily dependent on raw cotton prices and seasonal agricultural supply availability.
• A significant portion of total business transactions and revenue is tied to related party entities.
• Concentrated revenue dependency on a small number of key major customers.
• Operating manufacturing facilities are entirely situated on leased premises from promoters.
• Exposure to foreign exchange rate volatility on export revenue realisations.