The Mumbai bench of the National Company Law Tribunal (NCLT) has approved Govind Rathi-led Shriniwas Spintex Industries Pvt. Ltd.’s Rs 156 crore resolution plan for debt-ridden Morarjee Textiles Ltd, Butibori unit, on Monday. Shriniwas Spintex, a manufacturer of cotton yarn in Hinganghat in Wardha district will also infuse Rs 25 crore as initial working capital based on the company’s requirements, including an upfront infusion of Rs 9 crore as fresh equity. Govind Rathi told The Hitavada on Tuesday that production will start in Morarjee Textiles Ltd within a couple of weeks. With this, Shriniwas Spintex Industries will become one of the largest players in textile in the region. Morarjee Textiles boasts a high-profile list of clientele that includes domestic and international brands across 44 countries.

 

This list includes brands like Uniqlo, Zara, Esprit, Next, Paul Smith, M&S, H&M, ANF, Belk, Moss Brothers to name a few. Some of the domestic client brands include names like Louis Philippe, Van Huesen, Blackberry and Zodiac. Sources told The Hitavada that Morarjee Textiles will further increase its capacity utilisation in coming days. Currently Shriniwas Spintex Industries is a 1 lakh spindle capacity company. It is engaged in manufacturing, processing, spinning and weaving of yarn and fabric. Earlier in 2023, Shriniwas Spintex group also acquired the 120-year old RSR Mohota Mill (Rai Saheb Rekhchand Mohota Spg. & Wvg. Mills Ltd) located in Hinganghat, in Wardha through NCLT process. In 2024, the NCLT admitted an insolvency petition filed by Axis Bank against Morarjee Textiles, which had acknowledged dues of Rs 892 crore to its creditors.

 

Lenders including Indian Bank, Axis Bank, ICICI Bank and Tata Capital supported Shriniwas Spintex’s resolution plan, while ACT Fininvest Ltd., Kotak Mahindra Bank and some others dissented. Morarjee Textiles, part of the Ashok Piramal Group, and one of the oldest textile manufacturers, known for cotton shirting, fashion prints, voiles and sustainable textile products has an average fair value of Rs 229 crore and a liquidation value of Rs 140 crore.