Ambika Cotton Mills

C Bhavnani who owns 38% stake in the Company is the wife of Mr Chandran. This is confirmed by the annual report of Ambika for FY15 – http://www.bseindia.com/bseplus/AnnualReport/531978/5319780315.pdf

Key points from AR

1. Management is bullish on growth prospects – as was disclosed in the results, Company plans to setup another spinning unit of 30,000 spindles with 100% compact facility consisting of imported and indigenous machinery, with total cost of 130 crores. This will be largely financed by internal accruals
2. AR says that specialty cotton yarn does not closely track economic growth, and is consistently growing. Company continues to have good demand for its products, and continues to strengthen its production base by modernization and adding balancing equipments
3. Management focus is to maximize per spindle EBITDA, which as we know is one of the highest in the industry
4. Export % of sales have been reduced from 65% in FY14 to 59% in FY15
5. Long term Debt has been reduced from 61 crores in FY14 to 16 crores in FY15, and Mr Chandran is focused on working with minimal or no debt