Aastha Spintex Limited

About Aastha Spintex Limited

We are engaged in the business of manufacturing and trading of carded, combed and compact combed cotton yarns and cotton bales. In Fiscal 2025, our Company has achieved the highest ROCE and RONW amongst its selected peers. Our cotton bales are utilized both for captive production of cotton yarns and for supply to other spinning units and the cotton yarns produced are used in both knitting and weaving applications, catering to a wide spectrum of end-use segments and products including denim, terry towels, shirting, sheeting, sweaters, socks, bottom wear, home textiles, and industrial fabrics. We have a semi-automated and integrated spinning and ginning Manufacturing Facility situated at Halvad, Morbi, Gujarat. We produce 100% cotton yarns in counts ranging from Ne 26 to Ne 40 which includes carded, combed 311 and combed compact varieties ("Ne" refers to the English Cotton Count System, which is a standard way to measure the fineness or thickness of yarn. The higher the Ne, the finer the yarn). The product wise bifurcation of revenue from operations of our products/by-products for stub period and last three fiscals is set out below: For nine-month period ended December 31, For financial year For financial year For financial year 2025 ended March 31, 2025 ended March 31, 2024 ended March 31, 2023 Revenue % of Revenue % of Revenue % of Revenue % of Operation from Revenue from Revenue from sale Revenue from sale Revenue sale of from sale of from of from of from Products Operations Products Operations Products Operations Products Operations from sales from sales from sales from sales (₹ In of (₹ In of (₹ In of (₹ In of Lakhs) products Lakhs) products Lakhs) products Lakhs) products Sale of Product (Manufacturing) Cotton 10,603.05 34.13% 16660.31 48.47 16871.77 56.99 18567.64 79.04% Yarn Cotton 15,254.47 49.11% 11529.26 33.55 5812.14 19.63 1308.74 5.57% Bales Sale of Product (Trading) Cotton 2,047.82 6.59% 1723.53 5.01% 4011.62 13.55 876.03 3.73% Yarn Cotton - - - - - - - - Bales Sale of Cotton waste (Manufacturing) Cotton Seeds by- product in 1,724.00 5.55% 2,183.69 6.35% 279.48 0.94% 47.63 0.20% Ginning unit Cotton Waste by- products in 1,434.44 4.62% 2,272.71 6.61% 2,627.36 8.88% 2,692.79 11.46% Spinning unit Total 31,063.77 100% 34,369.50 100.00% 29,602.37 100.00% 23,492.83 100.00% We have more than a decade of operational experience in the textile industry, we presently operate through our manufacturing facility which is strategically located at Halvad, Morbi (Gujarat) in proximity to high quality cotton growing area of Gujarat and spans a built-up area of approximately 65,762 sq. m (“Manufacturing Facility”). As on date of this Red Herring Prospectus, we have a spindle count capacity of 25,920 spindles through 15 compact ring spinning machines and an annual 12,000 MT production capacity of cotton bales through 28 ginning machines. We have a cotton yarn production capacity of 7,700 MT per annum. Our Manufacturing Facility operates 24 hours per day on a 3-shift basis to maximize output and ensure uninterrupted operations and usually operates for 365 days a year. We have a quality control and product development team (“Quality Team”) at our Manufacturing Facility that undertakes testing of raw materials, unfinished product at different stages of production, and finished products before dispatch. We have set up an in-house laboratory to undertake such tests on the intermediate and finished products. Additionally, standard operating procedures are adopted for controlling each step of our manufacturing process to ensure compliance with the quality specifications provided by our customers. In order to ensure uniformity in our products and minimize errors, we have implemented a semi-automated manufacturing process that regulates key stages of production, thereby helping maintain consistent quality and standards while reducing the scope for error. We believe these quality measures improves the effectiveness of the manufacturing process, thereby improving the quality of our products. Our Promoters Divyang Jashwantbhai Patel (Chairman and Managing Director), Vivek Rasiklal Gothi (Whole- time Director), Jashvant Valjibhai Patel (Executive Director) and Rasiklal Valjibhai Patel (Administrative Head), play a pivotal role in strategic business development and driving the growth of our Company. With deep industry knowledge and entrepreneurial skills, their emphasis on product quality and integration of advanced technology in our manufacturing process, continue to guide our expansion and define our core values. All our Promoter Directors remain actively involved in our operations. Their vision, business acumen, and leadership have been 312 instrumental in sustaining our operations and driving consistent growth. They are supported by an experienced team of Key Managerial Personnel and Senior Management, who have consistently demonstrated the ability to adapt to changing market conditions, scale operations, and maintain customer relationships. For further details, see “Our Promoters and Promoter Group” and “Our Management” on page 227 and 203, respectively. We are also an environmentally conscious organization committed to promoting the use of renewable energy. As part of our sustainability efforts, we installed a rooftop solar power plant, ground-mounted solar power plant and wind power plant, which became operational in 2023, 2023 and 2024 respectively to source captive power thereby substantial cost effectiveness on power cost. The installed capacity of this rooftop solar power plant, ground- mounted solar power plant and wind power plant stands at 1 MW, 4 MW and 2.7 MW respectively. This initiative supports our shift toward clean energy, contributing to our daily power requirements and resulting in a generation of average 37,692 units per day collectively during the period in between April 2024 to March 2025 resulting in reduction of monthly electricity expenses. This green initiative not only helps reduce operational costs but also reinforces our commitment to eco-friendly and energy-efficient manufacturing practices by lowering our overall carbon footprint. SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDITED PERIOD BEGINNING FROM APRIL’25: 1. The company vide Special Resolution Dated 11th July, 2025 and Special Resolution Dated 30th August, 2025 has increased its authorized share capital as fo