Vardhman Acrylics Limited (CIN: L51491PB1990PLC019212)
Source: Vardhman Acrylics Limited Annual Report FY 2025-26 (Fiscal Year Ended March 31, 2026)
📋 Quick Facts: Company Snapshot
| Attribute | Disclosed Detail |
|---|---|
| Official Company Name | Vardhman Acrylics Limited |
| Corporate Identity Number (CIN) | L51491PB1990PLC019212 |
| NSE Symbol & Exchange Listing | Listed on National Stock Exchange of India Limited (NSE) |
| Date of Incorporation / History | Incorporated in 1990 (Promoter group heritage delivering excellence since 1965) |
| Registered Office & Corporate Headquarters | Vardhman Premises, Chandigarh Road, Ludhiana – 141010, Punjab, India |
| Business / Executive Office | 1st Floor, Palm Court, Opposite Management Development Institute, MG Road, Sector 16, Gurugram – 122001, Haryana, India |
| Telephone & Investor Email Contact | +91-161-2228943-48 | secretarial.lud@vardhman.com |
| Chairman | Mr. Shri Paul Oswal (S.P. Oswal) |
| Vice-Chairman | Mr. Bal Krishan Choudhary |
| Whole Time Director | Mr. Vivek Gupta |
| Chief Financial Officer (CFO) | Mr. Raish Shaikh |
| Company Secretary & Compliance Officer | Mr. Satin Katyal |
| Promoter & Parent Holding Group | Vardhman Group (Holding Company: Vardhman Textiles Limited holding 70.74%) |
| Industry / Sector Classification | Textile Intermediaries / Petrochemical Derivatives / Synthetic Fibres (Acrylic Fibre & Tow) |
| Total Permanent Employees | 318 employees on permanent rolls as of March 31, 2026 |
| Manufacturing Facility / Plant Location | 755, GIDC Mega Estate, Jhagadia – 393110, District Bharuch, Gujarat, India |
| Statutory Auditors | M/s. SCV & Co. LLP, Chartered Accountants (Firm Reg. No. 000235N/N500089) |
| Secretarial Auditor | M/s. Ashok K Singla & Associates, Practicing Company Secretaries |
| Cost Auditor | Mr. R.A. Mehta, Practicing Cost Accountant |
| Registrar & Transfer Agent (RTA) | M/s. MCS Share Transfer Agent Limited, Office No. 3B3, 3rd Floor, ‘B’ Wing, Gundecha Onclave Premises Co-op Society Ltd, Kherani Road, Sakinaka, Andheri East, Mumbai – 400072 |
| Principal Bankers | ICICI Bank Limited, HDFC Bank Limited |
🏢 The Corporate Identity: Vardhman Acrylics Overview, Promoters & History
The Big Picture: Business Model & Core Value Proposition
Vardhman Acrylics Limited (VAL) operates as a premier Indian industrial enterprise dedicated to the manufacturing and marketing of high-quality Acrylic Fibre and Tow. Positioned as a mission-critical supplier to the Indian winterwear and textile manufacturing ecosystem, the company manufactures staple fibres and continuous filament tow utilized in spinning synthetic yarns, knitwear, blankets, shawls, and technical textiles.
The company operates a state-of-the-art continuous polymerization and wet-spinning production complex at Jhagadia in District Bharuch, Gujarat. VAL’s economic model relies on converting Acrylonitrile (ACN)—a liquid chemical derived from crude oil/petrochemical refining—and co-monomers such as Vinyl Acetate Monomer (VAM) into high-purity acrylic fibre. By maintaining an agile, safety-first, and energy-efficient operational footprint, Vardhman Acrylics fulfills a significant share of India’s domestic acrylic fibre requirements while competing against overseas producers.
The Founders, Promoters & Their Legacy
Vardhman Acrylics Limited functions as a key strategic manufacturing subsidiary of the industrial powerhouse Vardhman Textiles Limited (VTL), which holds a controlling 70.74% equity stake in the company. The enterprise draws its foundational strength, operational ethos, and governance practices from the broader Vardhman Group, an industrial conglomerate whose textile legacy dates back to 1965.
The strategic direction of the company is guided by Chairman Mr. Shri Paul Oswal, a veteran leader of the Indian textile industry, alongside Vice-Chairman Mr. Bal Krishan Choudhary and Whole Time Director Mr. Vivek Gupta. Mr. Bal Krishan Choudhary, who possesses over 50 years of leadership experience across chemical, textile, and steel sectors, was instrumental in negotiating the original technology transfer agreements, establishing the plant at Jhagadia, and steering VAL as its Managing Director and Vice-Chairman across successive decades.
The Journey: Corporate History & Key Milestones
Incorporated in 1990 to address India’s import dependency for synthetic acrylic fibres, Vardhman Acrylics Limited represented a forward-looking industrial import-substitution initiative. The company executed technological tie-ups and commercial agreements to establish a world-class acrylic fibre manufacturing facility in Gujarat’s chemical industrial belt at Jhagadia.
- 1990: Incorporation of Vardhman Acrylics Limited as a public limited enterprise under the Companies Act.
- 1999: Successful commissioning and commercial operationalization of the state-of-the-art Acrylic Fibre manufacturing plant at Jhagadia, Gujarat.
- 2008: Leadership transition with Mr. Bal Krishan Choudhary assuming Managing Director responsibilities to drive market expansion and operational debottlenecking.
- 2016: Adoption of Ind AS accounting standards, establishing baseline carrying values across plant assets and corporate investments.
- 2024–2025: Re-appointment and designation of Mr. Bal Krishan Choudhary as Non-Executive Vice-Chairman; adoption of enterprise-wide modern digital infrastructure.
- FY 2025–26: Migration and full implementation of advanced SAP S/4 HANA ERP platform across all plant, treasury, and commercial operations; execution of a 5-year long-term wage settlement with the Workers’ Representatives Committee.
The Corporate Umbrella & Group Structure
Vardhman Acrylics Limited operates as an independent listed company without any subsidiary, associate, or joint venture entities. It is directly controlled by Vardhman Textiles Limited (Holding Company), which is supported by fellow promoter entities including Devakar Investment and Trading Company Private Limited, Vardhman Holdings Limited, and VTL Investments Limited.
⚙️ The Business Engine: Segments, Brands, Products & Operations
The Core Divisions & Segment Revenue Breakdown
The Chief Operating Decision Maker (CODM)—comprising the Chairman, Vice-Chairman, and Whole Time Director—evaluates performance and allocates capital for the enterprise as a single operating unit. Consequently, Vardhman Acrylics Limited operates in a single primary business segment: Manufacturing and Sale of Acrylic Fibre and Tow.
| Business Activity / Revenue Source | FY 2025-26 (₹ in Crores) | % Share of Total Revenue | FY 2024-25 (₹ in Crores) | % Share of Total Revenue | Latest YoY (%) |
|---|---|---|---|---|---|
| Manufactured Goods (Acrylic Fibre & Tow) | 312.66 | 98.14% | 275.39 | 97.81% | +13.53% |
| Trading Goods (Raw Material ACN & VAM) | 5.30 | 1.66% | 5.62 | 2.00% | -5.69% |
| Scrap Sales & Other Operating Income | 0.61 | 0.19% | 0.49 | 0.18% | +24.49% |
| Export Incentives | 0.00 | 0.00% | 0.06 | 0.02% | -100.00% |
| Total Revenue from Operations | 318.57 | 100.00% | 281.57 | 100.00% | +13.14% |
The Product & Service Catalog (with Operational KPIs)
The manufacturing capabilities of Vardhman Acrylics Limited encompass a diverse array of acrylic fibre and tow products tailored for specialized textile processing across ring spinning, open-end spinning, and worsted spinning systems:
- Acrylic Staple Fibre: Cut-length synthetic fibres supplied in varied deniers and cut lengths for blending with wool, cotton, or polyester, or for processing into 100% acrylic spun yarns used in sweaters, hosiery, socks, and hand-knitting yarns.
- Acrylic Tow: Continuous strands of untwisted acrylic filaments supplied to stretch-breaking machines for converting directly into worsted tops used in high-end knitwear, carpets, and upholstery.
- Specialty Fibre Variants: Non-standard deniers developed with high softness, engineered dye-affinity, and enhanced thermal insulation properties.
In FY 2025-26, the company achieved total raw material consumption of ₹213.99 Crores (compared to ₹190.93 Crores in FY 2024-25). Raw material consumption was heavily dominated by Acrylonitrile (ACN) at ₹192.20 Crores (89.82% of total raw material cost), followed by Vinyl Acetate Monomer (VAM) at ₹0.14 Crores (6.32%), and other auxiliary process chemicals at ₹0.08 Crores (3.87%).
Mapping the Domestic & Global Reach (India vs. Exports)
Vardhman Acrylics Limited predominantly services the Indian domestic market, supplying textile spinning clusters across Punjab, Haryana, Rajasthan, Gujarat, and Maharashtra. Overseas shipments are executed opportunistically when international arbitrage and export margins justify allocation.
| Geographic Location | FY 2025-26 (₹ in Crores) | % Share of Total Revenues | FY 2024-25 (₹ in Crores) | % Share of Total Revenues | Latest YoY (%) |
|---|---|---|---|---|---|
| Domestic Sales (India) | 317.96 | 100.00% | 279.72 | 99.54% | +13.67% |
| Overseas / Export Sales | 0.00 | 0.00% | 1.30 | 0.46% | -100.00% |
| Total Gross Revenue from Contracts | 317.96 | 100.00% | 281.01 | 100.00% | +13.15% |
The Brick & Mortar Footprint: Manufacturing Plants & R&D
The core production engine of Vardhman Acrylics Limited is concentrated at a single, highly integrated manufacturing plant located at Plot No. 755, GIDC Mega Estate, Jhagadia – 393110, District Bharuch, Gujarat. The facility benefits from close proximity to raw material import gateways (Dahej and Hazira ports) and established chemical utility infrastructure.
During FY 2025-26, the company invested ₹3.73 Crores toward energy conservation and process modernization projects at the Jhagadia plant. Key operational and technical improvements included:
- Chiller Modernization: Replacement of two obsolete high-energy brine chillers and associated pumps with energy-efficient units.
- Coating Applications: Application of specialized hydrodynamic coatings on cooling tower pumps to reduce power consumption.
- Thermal Loss Reduction: Insulation upgrades across high-pressure steam supply pipelines to limit thermal radiation losses.
- Process Optimization: Modifications to Evaporator vacuum systems and Reverse Osmosis (RO) maintenance protocols to boost process water recovery rates.
📊 The Financial Health: The Numbers Simplified
Earnings, Expenses, & Take-Home Profits (Profit & Loss)
In FY 2025-26, Vardhman Acrylics Limited recorded a 13.14% expansion in Revenue from Operations, reaching ₹318.57 Crores compared to ₹281.57 Crores in FY 2024-25. Profit before Depreciation, Interest, and Tax (PBDIT/EBITDA) surged 65.31% to ₹0.32 Crores (EBITDA margin of 10.01%), up from ₹0.19 Crores (EBITDA margin of 6.85%) in the prior year. This margin expansion was driven by sustained plant operating rates, continuous plant operations (compared to a 48-day market-induced shutdown in FY 2024-25), and optimized raw material sourcing.
Net Profit After Tax (PAT) expanded 130.49% to ₹27.25 Crores (PAT margin of 8.55%), compared to ₹11.82 Crores (4.20% margin) in FY 2024-25. Total tax expenses stood at ₹1.61 Crores, benefiting from a tax adjustment credit of ₹5.11 Crores pertaining to earlier assessment years.
| Statement of Profit and Loss Line Item | FY 2025-26 (₹ in Crores) | FY 2024-25 (₹ in Crores) | Latest YoY (%) |
|---|---|---|---|
| I. Revenue from operations | 318.57 | 281.57 | +13.14% |
| II. Other income | 15.22 | 15.61 | -2.50% |
| III. Total Income (I + II) | 333.79 | 297.18 | +12.32% |
| IV. Expenses | |||
| Cost of materials consumed | 213.99 | 190.93 | +12.08% |
| Purchases of stock-in-trade | 5.41 | 5.53 | -2.17% |
| Changes in inventory of work-in-progress, stock-in-trade and finished goods | (3.77) | 2.15 | N/M |
| Employee benefit expense | 22.32 | 20.41 | +9.36% |
| Finance cost | 0.15 | 0.25 | -40.00% |
| Depreciation and amortization expenses | 2.89 | 3.00 | -3.67% |
| Other expenses | 63.93 | 58.85 | +8.63% |
| Total Expenses (IV) | 304.93 | 281.13 | +8.47% |
| V. Profit before tax (III – IV) | 28.86 | 16.05 | +79.81% |
| VI. Tax Expense | |||
| Current tax | 7.08 | 1.60 | +342.50% |
| Deferred tax | (0.36) | 2.63 | N/M |
| Tax adjustments related to earlier years | (5.11) | 0.00 | N/M |
| Total tax expense | 1.61 | 4.23 | -61.94% |
| VII. Profit for the year (V – VI) | 27.25 | 11.82 | +130.54% |
| VIII. Other Comprehensive Income (OCI) | |||
| (a) (i) Remeasurements of defined benefit plans | 0.09 | 0.10 | -10.00% |
| (a) (ii) Income tax relating to items that will not be reclassified | (0.02) | (0.03) | -33.33% |
| (b) (i) Equity instruments through other comprehensive income | 0.01 | 0.10 | -90.00% |
| (b) (ii) Income tax relating to items that will not be reclassified | (0.00) | (0.25) | -100.00% |
| Total Other Comprehensive Income (Net of taxes) | 0.08 | (0.07) | N/M |
| IX. Total Comprehensive Income for the year (VII + VIII) | 27.33 | 11.75 | +132.60% |
| Basic Earnings Per Equity Share (₹) | 3.39 | 1.47 | +130.61% |
| Diluted Earnings Per Equity Share (₹) | 3.39 | 1.47 | +130.61% |
Assets, Borrowings, & Net Worth (Balance Sheet)
As of March 31, 2026, Vardhman Acrylics Limited maintained a strong Balance Sheet characterized by zero bank debt, a Net Worth of ₹253.93 Crores, and a current ratio of 3.50x. Non-current assets stood at ₹66.92 Crores, while current assets totaled ₹275.66 Crores. Current assets included mutual fund treasury investments of ₹179.66 Crores and cash balances of ₹3.23 Crores, highlighting substantial liquidity reserves.
| Balance Sheet Line Item | As at March 31, 2026 (₹ in Crores) | As at March 31, 2025 (₹ in Crores) | Latest YoY (%) |
|---|---|---|---|
| ASSETS | |||
| 1. Non-current assets | |||
| (a) Property, plant and equipment | 49.19 | 46.58 | +5.60% |
| (b) Right of Use Asset | 10.83 | 10.98 | -1.37% |
| (c) Capital work-in-progress | 0.14 | 0.11 | +27.27% |
| (d) Financial Assets – (i) Investments | 3.42 | 64.38 | -94.69% |
| (d) Financial Assets – (ii) Loans | 0.16 | 0.03 | +433.33% |
| (d) Financial Assets – (iii) Other financial assets | 0.90 | 0.90 | 0.00% |
| (e) Other non-current Assets | 2.28 | 1.53 | +49.02% |
| Total Non-current assets | 66.92 | 124.52 | -46.26% |
| 2. Current assets | |||
| (a) Inventories | 64.07 | 80.89 | -20.79% |
| (b) Financial Assets – (i) Investments | 179.66 | 121.18 | +48.26% |
| (b) Financial Assets – (ii) Trade receivables | 11.15 | 8.76 | +27.28% |
| (b) Financial Assets – (iii) Cash and Cash Equivalents | 3.23 | 0.77 | +319.48% |
| (b) Financial Assets – (iv) Bank balances other than (iii) above | 2.69 | 2.82 | -4.61% |
| (b) Financial Assets – (v) Loans | 0.08 | 0.03 | +166.67% |
| (b) Financial Assets – (vi) Other financial assets | 1.99 | 0.10 | +1890.00% |
| (c) Other current assets | 12.78 | 9.57 | +33.54% |
| Total Current assets | 275.66 | 224.12 | +23.00% |
| TOTAL ASSETS | 342.58 | 348.63 | -1.74% |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| (a) Equity Share capital | 80.36 | 80.36 | 0.00% |
| (b) Other Equity | 173.56 | 158.29 | +9.65% |
| Total Equity | 253.93 | 238.65 | +6.40% |
| 1. Non-current liabilities | |||
| (a) Financial Liabilities – Lease Liability | 0.00 | 0.00 | N/M |
| (b) Provisions | 0.54 | 0.48 | +12.50% |
| (c) Deferred tax liabilities (Net) | 9.24 | 9.60 | -3.75% |
| (d) Other non current liabilities | 0.15 | 0.15 | 0.00% |
| Total Non-current liabilities | 9.93 | 10.23 | -2.93% |
| 2. Current liabilities | |||
| (a) Financial Liabilities – Current Borrowings | 0.00 | 0.18 | -100.00% |
| (a) Financial Liabilities – Trade payables (MSME) | 0.29 | 2.25 | -87.11% |
| (a) Financial Liabilities – Trade payables (Others) | 48.48 | 64.95 | -25.36% |
| (a) Financial Liabilities – Other financial liabilities | 7.91 | 7.94 | -0.38% |
| (b) Other Current liabilities | 0.77 | 1.48 | -47.97% |
| (c) Provisions | 0.94 | 0.16 | +487.50% |
| (d) Current tax liabilities (net) | 20.31 | 22.80 | -10.92% |
| Total Current liabilities | 78.72 | 99.75 | -21.08% |
| TOTAL EQUITY AND LIABILITIES | 342.58 | 348.63 | -1.74% |
Cash Flow: Tracking the Money Movement
Cash flows generated from operations reached ₹7.05 Crores in FY 2025-26. Operating cash flows absorbed working capital adjustments including a ₹18.42 Crores decrease in trade payables and tax payments of ₹4.45 Crores. Investing cash flows contributed ₹7.72 Crores, as liquidations from mutual fund investments offset property, plant, and equipment additions. Financing cash outflows totaled ₹12.30 Crores, primarily reflecting ₹12.11 Crores in equity dividend distributions.
| Statement of Cash Flows Activity | FY 2025-26 (₹ in Crores) | FY 2024-25 (₹ in Crores) | Latest YoY (%) |
|---|---|---|---|
| Profit before tax | 28.86 | 16.05 | +79.81% |
| Depreciation and Amortization expense | 2.89 | 3.00 | -3.67% |
| Net Gain on sale/fair valuation of investments & interest income | (10.61) | (12.31) | -13.81% |
| Operating profit before working capital changes | 18.51 | 6.25 | +196.16% |
| Working Capital Adjustments (Inventories, Receivables, Payables, Assets/Liabilities) | (7.01) | 22.22 | N/M |
| Cash generated from operations | 1,149.83 | 2,847.10 | -59.61% |
| Direct Income Taxes Paid | (4.45) | (2.33) | +90.99% |
| Net cash generated from operating activities (A) | 7.05 | 26.15 | -73.04% |
| Purchase of Property, Plant and Equipment (CapEx) | 5.49 | 5.04 | +8.93% |
| Proceeds from sale of Property, Plant and Equipment | 5.23% | 0.28% | – |
| Interest received | 0.35 | 0.28 | +25.00% |
| Net Proceeds / (Purchase) of Investments in Mutual Funds / Liquid Funds | 5.23% | 0.28% | – |
| Change in Bank balances not considered as cash and cash equivalents | 0.13 | (0.03) | N/M |
| Net cash flow from / (used in) investing activities (B) | 7.72 | (9.08) | N/M |
| Repayment of short-term borrowings | (0.18) | (0.96) | -81.25% |
| Dividend paid to company’s shareholders | (12.11) | (16.11) | -24.83% |
| Interest and finance costs paid | (0.01) | (0.02) | -50.00% |
| Net cash used in financing activities (C) | (12.30) | (17.09) | -28.03% |
| NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (A + B + C) | 2.46 | (0.02) | N/M |
| Cash and Cash Equivalents at Beginning of the Year | 0.77 | 0.79 | -2.53% |
| Cash and Cash Equivalents at End of the Year | 3.23 | 0.77 | +319.48% |
Funding the Future: CapEx & Financial Ratios
Vardhman Acrylics Limited incurred ₹5.49 Crores in capital expenditure (CapEx) additions during FY 2025-26, focusing on plant efficiency, energy recovery, and digital modernization projects. The table below outlines key financial ratios disclosed by the management:
| Financial Ratio Metric | FY 2025-26 | FY 2024-25 | Primary Driver Disclosed for Variance | Latest YoY (%) |
|---|---|---|---|---|
| Debtors Turnover Ratio (Days) | 11.41 Days | 16.21 Days | Lower average trade receivables outstanding during the year. | – |
| Inventory Turnover Ratio (Days) | 83.04 Days | 101.11 Days | Higher sales turnover combined with lower average inventory. | – |
| Current Ratio (Times) | 3.50x | 2.25x | Substantial growth in current treasury investments and GST balances. | +55.56% |
| Debt Equity Ratio (Times) | 0.00x | 0.001x | Full repayment of short-term bank borrowings, eliminating debt. | -100.00% |
| Interest Coverage Ratio (Times) | 196.94x | 60.86x | EBITDA growth and strong operating earnings. | +223.60% |
| EBITDA Margin (%) | 10.01% | 6.85% | Improved spread between ACN raw material prices and acrylic fibre sales prices. | – |
| Net Profit Margin (%) | 8.55% | 4.20% | Enhanced operating profitability and tax adjustments. | – |
| Return on Net Worth / ROE (%) | 10.73% | 4.95% | Higher net profits earned on equity base. | – |
| Return on Capital Employed / ROCE (%) | 5.23% | 0.28% | EBIT growth across the capital base. | – |
👥 Power & Control: Corporate Governance, Leadership & Ownership
The Brain Trust: Board of Directors & Key Managerial Personnel (KMP)
The governance structure of Vardhman Acrylics Limited features a balance of promoter directors, professional executive managers, and non-executive independent directors:
| Name of Director / KMP | Designation / Role | DIN | Category |
|---|---|---|---|
| Mr. Shri Paul Oswal | Chairman | 00121737 | Promoter / Non-Executive Director |
| Mr. Bal Krishan Choudhary | Vice-Chairman | 00307110 | Non-Executive Non-Independent Director |
| Mr. Sachit Jain | Director | 00746409 | Promoter / Non-Executive Director |
| Mrs. Suchita Jain | Director | 00746471 | Promoter / Non-Executive Director |
| Mr. Vivek Gupta | Whole Time Director | 10366909 | Executive Director |
| Mr. Anil Kumar | Director | 00009928 | Non-Executive Independent Director |
| Mr. Bhooshan Lal Uppal | Director | 09626239 | Non-Executive Independent Director |
| Ms. Parakh Oswal | Director | 08312705 | Non-Executive Independent Director |
| Mr. Sanjeev Jain | Director | 01242929 | Non-Executive Independent Director |
| Mr. Sandeep Kapur | Director | 07016726 | Non-Executive Independent Director |
| Mr. Raish Shaikh | Chief Financial Officer (CFO) | – | Key Managerial Personnel |
| Mr. Satin Katyal | Company Secretary & Compliance Officer | – | Key Managerial Personnel |
Who Owns the Stock? Shareholding Pattern
As of March 31, 2026, the company’s total issued equity share capital comprised 8,03,63,746 fully paid-up equity shares of face value ₹10/- each. Dematerialized shares accounted for 99.99% (8,03,62,336 shares) of total capital.
| Shareholder Category | Number of Equity Shares Held | % Shareholding of Total Shares |
|---|---|---|
| Vardhman Textiles Limited (Holding Company) | 5,68,51,144 | 70.74% |
| Devakar Investment and Trading Company Private Limited | 25,93,484 | 3.23% |
| Vardhman Holdings Limited | 7,33,762 | 0.91% |
| VTL Investments Limited | 70,330 | 0.09% |
| Other Promoter Entities & Individual Promoters (Combined) | 444 | 0.00% |
| Total Promoter & Promoter Group Shareholding | 6,02,49,164 | 74.97% |
| Public Shareholders (Retail Individuals, Corporate Bodies & Others) | 2,01,14,582 | 25.03% |
| Total Issued Equity Share Capital | 8,03,63,746 | 100.00% |
🗺️ The Corporate Family Tree: Group Structure & Strategic Investments
Subsidiaries, Associates, & Joint Ventures (Form AOC-1)
Vardhman Acrylics Limited has no subsidiaries, joint ventures, or associate companies. Consequently, Form AOC-1 disclosure under Section 129(3) of the Companies Act, 2013 is not applicable to the enterprise.
Strategic Investments & Treasury Holdings
Vardhman Acrylics Limited maintains a substantial treasury portfolio invested across mutual funds, index funds, arbitrage funds, and strategic unquoted infrastructure entities:
- Unquoted Strategic Equity: Holds 16,47,525 equity shares of ₹10/- each in Narmada Clean Tech (formerly Bharuch Eco-Aqua Infrastructure Ltd.), valued at ₹3.42 Crores under FVTOCI, supporting industrial effluent discharge facilities in Jhagadia.
- Debt & Index Mutual Funds: Holds 4,76,57,528 units in Edelweiss NIFTY PSU Bond Plus SDL Index Fund – 2026 Direct Plan Growth, valued at ₹0.65 Crores under FVTPL.
- Liquid Mutual Funds: Holds 58,134 units in SBI Liquid Fund Direct Growth, valued at ₹0.25 Crores.
- Arbitrage Funds: Holds 1,99,34,273 units in Kotak Equity Arbitrage Fund Direct Growth (valued at ₹83.78 Crores) and 15,34,516 units in SBI Arbitrage Opportunity Fund Direct Growth (valued at ₹0.06 Crores).
🎯 The Strategic Outlook: Competitive Moats, Risks & Future Growth Plans
Competitive Advantages & Economic Moats
Vardhman Acrylics Limited maintains several key operational and commercial strengths within the synthetic fibre ecosystem:
- Integrated Supply Linkages: Direct parentage and supply integration with Vardhman Textiles Limited—one of India’s largest cotton and synthetic yarn spinners—provides consistent volume off-take and commercial feedback loops.
- Debt-Free Balance Sheet: Zero debt obligations and substantial cash reserves provide resilience against petrochemical market volatility and raw material price fluctuations.
- Location Advantage: Strategic location at Jhagadia, Gujarat ensures proximity to import terminals for Acrylonitrile (Dahej/Hazira) and key domestic textile consumption hubs.
- Operating Efficiency: Modernized wet-spinning technology and ongoing energy reduction projects support low energy and utility consumption per metric ton of fibre produced.
What Could Go Wrong? Key Challenges & Business Risks
Management highlights several key risks and potential operational headwinds:
- Acrylonitrile (ACN) Price Volatility: ACN pricing is tightly tied to global crude oil markets, petrochemical refining capacity additions in Asia, and geopolitical tensions in energy corridors.
- Dumping & Import Competition: Global acrylic fibre manufacturing overcapacity—particularly in mainland China and other Asian economies—leads to low-cost imports entering India, pressuring domestic price spreads.
- Fibre Substitution Risks: Unfavourable price gaps relative to alternative synthetic fibres (polyester) or natural fibres (cotton) can lead to blending adjustments by yarn spinners.
- Monsoon & Seasonal Demand Sensitivity: Indian acrylic fibre consumption is tied to winterwear sales, making demand sensitive to weather patterns and rural purchasing power.
The Next Chapter: Growth, Order Pipeline & CapEx Initiatives
Vardhman Acrylics Limited continues to focus on operational efficiency, product development, and energy management. Strategic priorities include:
- Digital Platform Optimization: Full deployment of the newly implemented SAP S/4 HANA ERP platform to enhance real-time data visibility, working capital tracking, and supply chain execution.
- Process Energy Reduction: Continuous identification and deployment of renewable power purchase options and thermal recovery equipment at the Jhagadia plant.
- Specialty Product Scaling: Expanding the production of specialized, high-softness acrylic fibre and tow products tailored for premium apparel and home textile markets.
Note: Financial ratios, margins, YoY growth percentages, and % revenue shares are calculated by IndianCompanies.in based on disclosed Ind AS financial statements.
Official Site: https://www.vardhman.com