Pashchim Maharashtra Textiles Pvt. Ltd.

Brickwork Ratings assigns the ratings for the Bank Loan Facilities of Rs. 35.00 Crs. of Pashchim Maharashtra Textiles Pvt. Ltd.

Particulars

Facilities**	Amount(Rs.Crs.)	Tenure	Rating#
Fund Based	35.00	Long Term	BWR BB /Stable Assignment
Non Fund Based	(1.50)	Short Term	BWR A4 Assignment
Grand Total	35.00	(Rupees Thirty Five Crores Only)

#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure RATING ACTION / OUTLOOK

Brickwork Ratings has assigned a long-term rating of BWR BB/Stable and a short-term rating of BWR A4 for the bank loan facilities of Pashchim Maharashtra Textiles Private Limited.

The Rating has factored in the directors’ extensive experience in the textile industry, their strong operational background, the company’s favorable location with adequate availability of raw materials, and the successful completion of the first phase of the project as per schedule. However, the rating is constrained by exposure to intense competition, the inherent risk of rapid technological changes, fluctuations in raw material prices that could affect cost structures, and low profit margins. Going forward, the company’s ability to complete the remaining project phases on time without cost overruns, and to prudently manage its debt and inventory, will remain key rating sensitivities.

The rating outlook has been assigned as "Stable" as BWR believes that "Pashchim Maharashtra Textiles Private Limited" business risk profile will be maintained over the medium term. The 'Stable' outlook indicates a low likelihood of rating change over the medium term. The rating outlook may be revised to “Positive” if the company demonstrates sustained operational stability. Conversely, it may be revised to “Negative” if any unforeseen adverse events materially impact the company’s financial risk profile.

KEY RATING DRIVERS

Credit Strengths:

• Management Experience: :

  The company’s management is led by a team of three directors, each with a B.Com qualification and experience in their respective family businesses. Mr. Nilesh Harakchand Dhoka, with 15 years of experience, oversees the commercial and production departments, indicating a strong operational background. Mr. Harshwardhan Omprakash Kotecha, though younger and relatively less experienced, manages the raw material procurement and stocking, which is a critical function. Mr. Prashant Subhash Bedmutha handles statutory compliance and brings diverse trading experience across multiple product categories and regions. While the team demonstrates sound knowledge of their current businesses, there is a moderate risk due to limited exposure to large-scale textile operations.

• Location Advantage: :

  The company is located in Solapur, Maharashtra, one of the top cotton producing states in India. This strategic location offers a significant advantage in sourcing raw materials, particularly cotton, directly from nearby agricultural regions, ensuring both cost efficiency and supply reliability. Proximity to local suppliers also reduces lead time and dependency on distant markets.  Moreover, Solapur benefits from well-developed transportation infrastructure, including road, rail, and nearby port connectivity, which facilitates the smooth movement of goods across domestic markets. This logistical advantage not only lowers distribution costs but also enhances the company's ability to respond quickly to market demands.

Credit Risks:

• Raw Material Availability and Prices: :

  India’s textile industry is heavily dependent on cotton, making it particularly sensitive to fluctuations in domestic cotton production. Factors such as erratic monsoons, droughts, and pest infestations (e.g., pink bollworm attacks) can significantly impact yield, leading to supply shortages and price volatility. This dependency poses a consistent risk to the stability of raw material costs. The prices of key raw materials including cotton, polyester, and dyes are subject to considerable fluctuation due to global market dynamics. Factors such as geopolitical tensions, changes in crude oil prices (which affect synthetic fibers), and shifts in international demand and supply can cause unpredictable spikes or drops in input costs, thereby impacting overall production costs.

• Competition in the textile industry in India: :

  The textile industry in India is marked by intense competition, driven by a large number of players operating at various scales ranging from small and medium enterprises (SMEs) to large integrated textile conglomerates. The sector is highly fragmented, with many regional manufacturers offering similar products, which leads to price-based competition and thinner profit margins. Additionally, the presence of well-established domestic brands, along with the growing influence of international brands entering the Indian market, has raised consumer expectations in terms of quality, design, and pricing. Companies are increasingly competing not only on cost but also on factors such as product innovation, supply chain efficiency, sustainability, and branding.

ANALYTICAL APPROACH - Standalone

The Company has no subsidiary, associate or joint ventures. BWR has taken a standalone approach for the bank loan rating review of the company. BWR has applied its rating methodology as detailed in the rating criteria.

RATING SENSITIVITIES

Going forward, the ability of the company to improve its scale of operations, the operating margin, and prudently manage its debt and inventory would be the key rating sensitivities.

Upward:

• The rating may be revised upward if the company achieves its projected operating income of Rs. 53.05 Cr or more in FY2026 and an operating margin of 15%.
• Increase in Tangible Net Worth (TNW) to Rs. 30.00 Cr as per project cost and an improvement in the current ratio to above 1.
• Completes the second phase of the project as per the planned schedule, without delays or cost overruns.

Downward:

• Failure to achieve the projected revenue in FY2026 as per the company's projections due to adverse market conditions or operational inefficiencies.
• Any deterioration in coverage indicators, with ISCR or DSCR falling below 1.00.

LIQUIDITY INDICATORS - Stretched

The company's liquidity position is defined as stretched with tightly matched accruals to repayment obligations, with highly utilized bank limits and modest cash reserves.

The project is under the process of upgradation of machinery, and the total cost of the project is Rs.125.35 Crs with promoter contribution of Rs. 30.00 Cr and unsecured loans of Rs. 25.68 Cr. The rest of the cost will be funded by the Rs 69.68 Cr term loan from State Bank of India. In the event of a delay in project completion, the expenses will be funded by the promoters. The interest during the construction is Rs. 3.89 Cr, which is also a part of the Project cost.

ABOUT THE ENTITY

Pashchim Maharashtra Textiles Private Limited (PMTPL) is a Private Limited Company registered with the Registrar of Companies, bearing registration No. 14101MH2023PTC406440. The Company has acquired the Solapur Undertaking of CLC Industries Limited, as per the terms 
of the resolution plan approved by the Hon'ble NCLT, Delhi, vide its order dated May 12, 2023. The factory is situated at Plot No. B-1, MIDC, Chincholi, Solapur, Maharashtra, 413255. They're planning to modernize their spinning unit, currently with 26,208 spindles, by adding new machinery to reach a total capacity of 31,680 spindles. This upgrade aims to establish a state-of-the-art cotton spinning mill capable of producing approximately 13 tons per day of combed compact yarn.

KEY FINANCIAL INDICATORS (Standalone)

Key Parameters	Units	FY 22 - 23 (Audited - Annual)	FY 23 - 24 (Audited - Annual)	FY 24 - 25 (Audited - Annual)
Operating Revenue	Rs.Crs.	Not Available	Not Available	17.14
EBITDA	Rs.Crs.	Not Available	Not Available	0.22
PAT	Rs.Crs.	Not Available	Not Available	0.05
Tangible Net Worth	Rs.Crs.	Not Available	9.95	10.00
Total Debt / Tangible Net Worth	Times	Not Available	2.89	4.57
Current Ratio	Times	Not Available	0.71	0.98

KEY COVENANTS OF THE FACILITY RATED

• The terms of sanction include covenants normally stipulated for such facilities.
• As per the SBI sanction terms, unsecured loans shall not be withdrawn during the currency of the Bank’s advance.

 

STATUS OF NON-COOPERATION WITH PREVIOUS CRA

Not Applicable

RATING HISTORY FOR LAST THREE YEARS (including withdrawal and suspended)

Facilities	Current Rating  (2025)			2024		2023		2022
Type	Tenure	Amount (Rs.Crs.)	Rating	Date	Rating	Date	Rating	Date	Rating
Fund Based	LT	35.00	BWR BB/Stable (Assignment)	NA	NA	NA	NA	NA	NA
NFB SubLimit	ST	(1.50)	BWR A4 (Assignment)	NA	NA	NA	NA	NA	NA
Grand Total		35.00	(Rupees Thirty Five Crores Only)

Hyperlink/Reference to applicable Criteria

• General Criteria
• Approach to Financial Ratios
• Short Term Debt
• Manufacturing Company

Analytical Contacts
Krishnappa Murugesh Ratings Analyst krishnappa.m@brickworkratings.com	Sabitha M Nayak Associate Director-Ratings sabitha.nayak@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com	Customer Support | CustSupport@brickwrokratings.com

SL.No.	Name of the Bank/Lender	Type Of Facilities	Long Term(Rs.Crs.)	Short Term(Rs.Crs.)	Total(Rs.Crs.)	Complexity of the Instrument
1	State Bank Of India (SBI)	Term Loan - Out-standing	28.61	_	28.61	Simple##
2	State Bank Of India (SBI)	Cash Credit - Sanctioned	5.00	_	5.00	Simple##
	Sub-Limit (Bank Guarantee) - Sanctioned		(1.50)
3	State Bank Of India (SBI)	Cash Credit - Proposed	1.39	_	1.39	Simple##
Total			35.00	0.00	35.00
TOTAL (Rupees Thirty Five Crores Only)

## BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.