Mohite Industries plans to sell its Spinning Unit, which accounts for 85.10% of total revenue. Despite its high revenue contribution, the unit reported a negative net worth of Rs 35.59 crore as of March 2026. The board has initiated a postal ballot process for shareholder approval to finalize the asset disposal and shift its registered office in Kolhapur.
Mohite Industries to Divest Key Spinning Unit
Revenue Contribution: 85.10% | Unit Net Worth: -Rs 35.59 crore
Reader Takeaway: Divesting a loss-making unit may improve balance sheet health but leaves a significant gap in company revenue.
What just happened
Mohite Industries has received board approval to sell its Spinning Unit, situated in Kolhapur. The proposed sale includes the land, buildings, structures, and all plant and machinery associated with the facility. The company is also shifting its registered office to a new location in Nagala Park, Kolhapur. Both decisions now move to shareholders for approval via a postal ballot process.
Why this matters
The Spinning Unit is the backbone of Mohite Industries' current revenue, contributing Rs 84.54 crore—or 85.10% of its total revenue—as of March 31, 2026. However, the unit has a negative net worth of Rs 35.59 crore, suggesting it has become a drag on the company's financial health. Divesting this unit allows the company to potentially exit a capital-draining operation, though it leaves the firm with a drastically reduced revenue stream.
The process
The company has not yet identified a buyer, stating that it will look for an unrelated third party to complete the transaction. The sale may take place in one or more tranches, provided the final consideration is at or above the prevailing market price. Mr. Sachin Bidkar has been appointed as the scrutinizer for the e-voting process, with CDSL facilitating the digital vote. The cut-off date for shareholder eligibility is October 23, 2026.
Risks to watch
Investors should be wary of the impact on future revenue stability once the primary business segment is sold. There is no clarity on how the management intends to replace the lost revenue or how the proceeds from the sale will be utilized. The lack of a confirmed buyer adds uncertainty to the timeline and final valuation of the transaction.
What to track next
Watch for official announcements regarding the identity of the buyer and the final sale valuation. Furthermore, monitor how the management plans to reshape the business model once the Spinning Unit is officially divested.