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BHARAT NEETI

Be Ahead With Economy And Policy Updates

AB Cotspin Secures ₹5.45 Crore Cotton Yarn Order Amid Textile Sector Surge

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Bathinda: A B Cotspin India Ltd. (NSE: ABCOTS, BSE: 544522), a seasoned textile manufacturer with over 25 years of industry experience, has announced a significant order worth approximately ₹5.45 crore for 200 metric tonnes of cotton yarn. The order is slated for execution within one month and further solidifies the company’s reputation as a reliable supplier of premium cotton yarn, knitted fabrics, and eco-conscious textile products.

This development comes at a time when India’s textile sector is witnessing renewed momentum, driven by strategic government initiatives and festive season demand. The Centre’s recent launch of the ₹600 crore “Kapas Kranti Mission” aims to revolutionize cotton cultivation by promoting high-yield, long-staple varieties through scientific research and technological innovation. The mission is expected to enhance raw material quality and availability for manufacturers like AB Cotspin.

The Prime Minister Narendra Modi-led central government’s decision to reduce GST rates has catalyzed a surge in consumer spending during Navratri, transforming it into one of the most robust consumption phases in recent years. Lower taxes on essential and consumer goods have provided relief to households and invigorated market sentiment, with Diwali demand projected to rise sharply. Retail analysts anticipate a strong business cycle through the ongoing festival and upcoming wedding season, further strengthening domestic supply chains and boosting the ‘Make in India’ initiative.

At the World Cotton Day 2025 celebrations held in New Delhi on October 7, Union Minister of Textiles Giriraj Singh outlined the government’s ambitious vision to make India’s textile sector carbon-neutral by 2030. He emphasized the goal of building a USD 350 billion textile industry, including USD 100 billion in exports, with sustainability as a core pillar. Minister of State Pabitra Margherita highlighted the role of the Kasturi Cotton initiative in advancing the government’s ‘5F’ (Farm–Fibre–Factory–Fashion–Foreign) framework and hinted at expanding textile cooperation with Russia.

‘Kasturi Cotton’, a collaborative initiative between the Government of India, textile trade bodies, and industry stakeholders, seeks to elevate the global value of Indian cotton by adhering to benchmarked quality standards. This aligns with AB Cotspin’s commitment to eco-friendly and high-quality production.

In a parallel move to attract investment, Punjab Chief Minister Bhagwant Singh Mann recently engaged with top industrialists, presenting Punjab as a prime destination for business. He assured that the state government is focused on simplifying investment procedures and fostering a conducive environment for both domestic and international investors.

Meanwhile, the Confederation of Indian Textile Industry (CITI) has urged the Finance Ministry to provide short-term support to factories serving the US market. Chairman Ashwin Chandran requested temporary relief on working capital and enhanced export incentives such as duty drawback, RoSTCL, and RoDTEP to mitigate the impact of 25–50% tariffs and order cancellations.

AB Cotspin projects a turnover of approximately ₹350 crore and an EBITDA of ₹50–55 crore for FY 2025–26. The company’s equity shares are now actively traded on the main boards of both the National Stock Exchange Ltd. (NSE) and BSE Ltd. (BSE), effective from September 24, 2025, marking a new chapter in its growth trajectory.

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