THE RAMARAJU SURGICAL COTTON MILLS LIMITED is a part of the Ramco Group of Companies. Ramco group is involved in the business of cotton, yarn, cement, roofing, building products, and enterprise software solutions. The Ramaraju Surgical Cotton Mills Limited was established in 1993 and is based in Rajapalaiyam, Tamil Nadu. The company has been a major contributor in developing the region from an agrarian to an industrial society.
The company is mainly engaged in the manufacturing of surgical dressings, grey fabrics, and yarn. The Ramaraju Surgical Cotton Mills Limited is the largest producer of absorbent cotton, bandages, gauze, and other wound care products. Moreover, it also generates electricity from solar panels and windmills for its captive consumption.
The weaving division of company accounts for around 50% of the company’s revenue. Company installedadditional 24 rapier looms that has been in production during the second half of FY 2020 to meet thedemand of more complex and tighter weaves.To control sizingcosts, the Company has installed a control unit to maintain uniformity of sizing pick up therebyreducing chemical consumption.The Company has wind mills with installed capacity of 8.30 MW for its captive power consumption. In FY 2020, the Company has installed the 1.20 MW rooftop solar power panels.
The monthly production capacity of the company is over 125 tons of medical grade bleached cotton and 15 Lakh square meters of bandages and gauze products. The company produces around 400 tons of superfine count ring-spun yarn and about 400 tons of open-end yarn per month. As of 31st March 2020, the company comprises of a product portfolio of 200 unique products. The factories of the company are located in Rajapalaiyam, Perumalpati, Subramaniapuram, and Thirumalagiri Village
The equity shares of the Company are listed with Metropolitan StockExchange of India Limited.
CIN of Ramaraju Surgical Cotton Mills |
L17111TN1939PLC002302 |
Registration Date of Ramaraju Surgical Cotton Mills |
28 February 1939 |
Category/Sub-category of Ramaraju Surgical Cotton Mills |
Public Limited Company |
Ramaraju Surgical Cotton Mills Registered office address |
P.A.C. Ramasamy Raja Salai, Rajapalaiyam - 626 117. Tamil Nadu. |
Ramaraju Surgical Cotton Mills Registrar and Transfer Agent |
Share Transmission and other activities carried out in-house. |
|
Name and Description of main products/services |
NIC Code of the product/service |
% to the total turnover of the Company |
|
Fabrics |
13121 |
49.33 |
|
Yarn |
13111 |
36.14 |
|
Surgical Dressings |
21006 |
12.54 |
Shri P.R. VENKETRAMA RAJA (Chairman)
Smt. NALINA RAMALAKSHMI (Managing Director)
Shri N.R.K. RAMKUMAR RAJA (Managing Director)
Dr. M. KARUNAKARAN
Shri N.K. SHRIKANTAN RAJA
Shri P.J. ALAGA RAJA
Justice Shri P.P.S. JANARTHANA
Shri V. SANTHANARAMAN
Shri P.J. RAMKUMAR RAJHA
Shri P.A.B. RAJU
|
Name of the Company |
% of shares held |
|
The Ramco Cements Limited |
1.54% |
|
Ramco Industries Limited |
0.16% |
|
Ramco Systems Limited |
0.04% |
|
Rajapalayam Mills Limited |
1.83% |
|
Sri Vishnu Shankar Mills Limited |
0.75% |
|
Shri Harini Media Limited |
2.65% |
|
Sri Harini Textiles Limited |
49.67% |
|
S. No. |
Shareholders’ Name |
Number of shares |
% of total Shares of the company |
|
1 |
Smt. NalinaRamalakshmi (Promoter) |
14,91,860 |
37.80% |
|
2 |
Shri N.R.K. Ramkumar Raja (Promoter) |
1,74,260 |
4.41% |
|
3 |
Other Promoters |
34,160 |
0.87% |
|
4 |
Public Shareholding |
22,46,280 |
56.92% |
|
|
Total |
39,46,560 |
100.00% |
Market conditions are challenging for the spinning mills across the entire globe. With excess capacityand lower demand, FY 2020 has been a difficult year. With thedecrease in yarn demand, the industry did not see any equivalent decrease incotton prices primarily due to the minimumsupport price (MSP) implemented bythe government owned Cotton Corporation of India (CCI).In addition, CottonCorporation of India’s purchase of cotton early in the picking season captured thehigh-quality yarnforcing the industry to pay higher than market to procure qualitycotton duringthe remainder ofthe year. Open-end (OE) yarn sales have been veryadverselyaffected during FY 2020 with theslowdown of demand from China havingbeenaffected by the US-China trade dispute. The industry expects strongheadwinds for near future.
For surgical division, the impact of COVID 19 was seen in the first half of FinancialYear 2020-21 as hospitals had slowed their outpatient and elective procedures tokeep capacity open for COVID outbreakpatients. Extended lock downs have alsohad an impact on retail channel. As a result, theconsumption of surgical productswere under pressure for the first half of FY 2021.
FY 2021 had started off on an unprecedented note with complete lockdown andbusiness restrictions due to Covid - 19 pandemic. The Government had providedlarger economicrelief packages in order to ensure sufficient liquidity as ameasureto support economy. The industry has seen lower demand and production output.
The Surgical Division of THE RAMARAJU SURGICAL COTTON MILLS LIMITED wasable to operate from the endof the first week of April. However, demand fromhospitals was weak. The company anticipate the demand to reach normal levels inthe second quarter of FY 2021. TheSpinning Division was able to commence partialoperations from the second week of May 2020andreached higher productionlevels in late June 2020. The worldwide demand for fineyarns is facing strongheadwinds due the sluggish consumer demand from the premiumsegment. Thegovernment has also been aggressive in purchasing cotton in open market tosupport farmers thereby holding raw material prices at an artificiallevel.It isexpected that the textile industry’s performance will recover to preCovid levels inFY 2022 on account of boost in demands from domestic as well as export markets.Rating agency ICRA has assigned ‘Stable’ outlook for FY 2022.
