1. At a Glance
Bannari Amman Spinning Mills (BASML) is the kind of company that makes everything from yarn to bed sheets to wind power – basically a textile buffet. But instead of serving profits, they’ve been serving debt, losses, and rights issues. With sales of ₹889 Cr in FY25, PAT just ₹12 Cr, and the stock down 47% in one year, this feels less like a textile mill and more like a spinning washing machine stuck in “rinse & repeat.”
2. Introduction
Once upon a time in Tamil Nadu, the Bannari Amman group decided to conquer the textile world. From cotton yarn to knitted fabrics, from duvet covers to baby products, from garments to windmills – if it can be woven, spun, or stitched, BASML probably tried it. They even flirted with renewable energy decades before it was cool.
But here’s the problem: global textile demand is cyclical, cotton prices are volatile, and Indian mills face China-Bangladesh competition. BASML, despite its vertical integration, is now battling shrinking margins, debt of ₹467 Cr, and promoters quietly selling down stakes (holding slipped from 55.3% to 49.6%).
Their latest rescue act? Selling their garment unit and subsidiary stakes for ₹153 Cr to repay loans, and launching a ₹40 Cr rights issue at ₹27/share. Oh, and apparently, they now want to “diversify into healthcare.” From spinning yarn to spinning stethoscopes – why not?
3. Business Model (WTF Do They Even Do?)
BASML is like a mini textile conglomerate stuffed into one balance sheet:
- Spinning (57% revenue): 21,503 tonnes of yarn produced in FY24.
- Weaving (28% revenue): 127 lakh metres of fabric.
- Knitting & Processing: Over 4,200 tonnes of knitted fabric, 1,900 tonnes processed fabric.
- Home Textiles & Made-ups (4% revenue): Bed sheets, pillow covers, baby products – mostly for exports.
- Waste Cotton (7% revenue): Yes, they even monetise waste. Respect.
- Windmills (23.4 MW capacity): Generated 372 lakh units in FY24, all used captively.
They export to China, Bangladesh, Korea, Sri Lanka, and even Europe.
