Company Profile
N R Vandana Tex Industries Limited is a textile company engaged in the manufacturing and wholesale distribution of cotton-based products such as sarees, salwar suits, and bed sheets. Operating under the brand names “Vandana” and “Tanaya,” the company serves a broad customer base across India through a network of wholesalers and B2B e-commerce platforms.
Founded in 1992 and headquartered in Kolkata, the company has built a reputation for offering affordable and quality textile products. It has gained industry recognition, including awards for its product debut in the apparel segment.
Business Model
N R Vandana Tex Industries Limited operates primarily in the textile sector, focusing on the production and wholesale distribution of cotton fabrics and garments. The company’s business model revolves around:
- Manufacturing: Producing a wide range of textile products including grey and finished fabrics, sarees, and salwar suits at its manufacturing facility in Maharashtra.
- Distribution Network: Supplying products through an extensive network of over 499 wholesalers spread across 31 states and union territories in India.
- B2B Sales: Leveraging business-to-business channels, including traditional wholesalers and modern e-commerce platforms, to reach retailers and bulk buyers.
- Brand Focus: Marketing products under proprietary brands like “Vandana” and “Tanaya” to cater to diverse customer preferences.
- Export Sales: Serving international markets across 13 countries to diversify revenue streams and expand its footprint.
Product Portfolio
N R Vandana Tex Industries Limited offers a diverse range of cotton textile products, including:
- Cotton Fabrics: Both grey (unprocessed) and finished cotton fabrics used by garment manufacturers and wholesalers.
- Sarees: Traditional Indian sarees under the brand “Vandana,” catering to various style preferences and occasions.
- Salwar Suits: Ready-to-wear and customized salwar suits marketed under the “Tanaya” brand.
- Bed Sheets and Home Textiles: A selection of cotton bed linens and related home textile products.
- Apparel Fabrics: Fabrics designed for use in garment production, targeting domestic and export markets.
Features Across Products:
High-Quality Cotton: Uses premium-grade cotton ensuring durability and comfort.
Wide Variety: Offers multiple designs, colors, and fabric types to cater to diverse customer tastes.
Affordable Pricing: Products are competitively priced to appeal to a broad market segment.
Eco-Friendly Processes: Emphasizes sustainable manufacturing practices to reduce environmental impact.
Consistent Quality Control: Maintains stringent quality checks through in-house labs and production standards.
Brand Recognition: Products marketed under well-known brands “Vandana” and “Tanaya” which resonate with customers.
Export-Ready: Products meet international standards, making them suitable for export markets.
Financial Snapshot (as of March 31, 2024)
📊 Financial Highlights (₹ in Crores)
| Metric | Value (₹ Crore) |
|---|---|
| Operating Income | 195.45 |
| Profit After Tax (PAT) | 1.67 |
| PAT Margin | 0.9% |
| Net Worth | 27.2 |
| Adjusted Debt/Net Worth | 1.27 |
📈 Key Financial Ratios
| Ratio | Value | Description |
|---|---|---|
| Return on Net Worth (RoNW) | ~6.15% | Measures profitability relative to shareholders’ equity. |
| Debt-to-Equity Ratio | 1.27 | Indicates the proportion of debt financing compared to equity. |
| Operating Profit Margin | ~4.5% | Profitability from core business operations before interest and tax. |
| Current Ratio | ~1.2 | Company’s ability to meet short-term obligations. |
| Earnings Per Share (EPS) | ₹4.21 | Profit allocated to each equity share. |
Initial Public Offering (IPO) Plans
N R Vandana Tex Industries Limited is planning to launch an IPO on the NSE Emerge platform. The company will offer up to 62 lakh equity shares with a face value of ₹10 each. The issue price and exact listing date will be announced later.
Purpose of the IPO funds includes:
- Meeting working capital requirements
- Repaying existing loans
- Supporting general corporate expenses
- Covering costs related to the IPO process
Objectives of the Issue
Working Capital: To finance the company’s day-to-day operational needs and support business expansion.
Debt Repayment: To prepay or fully repay existing borrowings, reducing financial costs and improving the balance sheet.
General Corporate Purposes: To meet miscellaneous corporate expenses that support ongoing and future business activities.
Issue Expenses: To cover fees and costs related to the IPO process, including regulatory and underwriting expenses.
🎯 Objectives of the IPO
Funding Working Capital Requirements – to support ongoing business operations and growth.
Prepayment or Repayment of Debt – to reduce financial liabilities and interest costs.
General Corporate Purposes – to finance business expansion, operational expenses, and other strategic initiatives.
Meeting Issue Expenses – to cover costs associated with the IPO process such as underwriting, legal, and regulatory fees.
Future Outlook
Strong Brand Presence: The company’s brands “Vandana” and “Tanaya” continue to gain recognition in the Indian textile market.
Revenue Growth Potential: With steady demand for cotton textiles, the company is well-positioned to grow its sales and market share.
Expansion Plans: Plans to increase production capacity to meet rising customer demand domestically and internationally.
Focus on Sustainability: Increasing emphasis on eco-friendly materials and processes to align with global textile trends.
Market Challenges: Volatility in raw material prices and fluctuating export demand remain risks but can be managed with strategic planning.
Key Growth Areas:
Product Diversification: Expanding product lines beyond traditional sarees to include salwar suits, bed sheets, and other home textiles.
Market Expansion: Strengthening presence in domestic markets while exploring opportunities in export markets.
Capacity Enhancement: Increasing production capabilities to meet rising demand and improve operational efficiency.
Brand Development: Enhancing marketing efforts to build stronger brand loyalty and customer engagement.
Sustainability Initiatives: Adopting eco-friendly materials and processes to meet growing consumer preference for sustainable textiles.
🧭 Vision and Leadership
Vision:
To become a leading player in the Indian textile industry by offering high-quality cotton textiles, expanding market presence, and embracing sustainable practices that align with customer needs.
Leadership:
The company is guided by experienced directors and management committed to growth and innovation. Their leadership has transformed the company from a small local business into a recognized brand with extensive wholesale networks across India and international markets.
Market Positioning and Growth Prospects
Strong Brand Presence: The company is known for its trusted brands “Vandana” and “Tanaya” in the cotton textile sector.
Wide Distribution Network: It operates through a robust B2B model, distributing products via over 499 wholesalers across India.
Diverse Product Range: Focuses on quality cotton textiles including sarees, salwar suits, and bed sheets.
Growth Trajectory: Demonstrated steady revenue and net worth growth in recent years.
IPO and Expansion: Plans to raise funds through IPO to boost working capital, repay debt, and expand production capacity to meet increasing demand.
