17th June, 2022
Ramaraju Surgical Cotton Mills Limited is a Public incorporated on 20 February 1939. It is classified as Non-govt company and is registered at Registrar of Companies, Chennai. The Ramaraju Surgical Cotton Mills, Ltd is part of the Ramco Group of companies. The Ramaraju Surgical Cotton Mills Ltd. was formerly known as The Surgical Cotton Mills Ltd. and changed its name to The Ramaraju Surgical Cotton Mills Ltd. in June 1943. It was founded in 1939 in Rajapalayam, Tamil Nadu, to take advantage of the availability of the cotton grown by local farmers. The company, along with Rajapalayam Mills Ltd. that was established in 1935, were instrumental in transforming the region from an agrarian to industrial society.
Directors of Ramaraju Surgical Cotton Mills Limited are Poosapadi Jagadeeswara Raja Ramkumar Raj, Poosapadi Sankarraja Alagharraja, Nalina Ramalakshmi, Poosapaadi Alaga Raja Jaganatharaja, Namboor R Krishnama Raja Ramkumar Raja, Posapadi Perumal Subba Raja Janarthana, Vaidyanathan Santhanaraman, Poosapadi Ramasubrahmaneya Rajha Venketr, Nambur Krishnama Raja Shrikantan Raja, Ramaraju Surgical Cotton Mills Limited’s Corporate Identification Number is (CIN) L17111TN1939PLC002302 and its registration number is 2302.
Ramaraju Surgical Cotton Mills Limited’s Annual General Meeting (AGM) was last held on 15 September 2020 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March 2020. Its authorized share capital is Rs. 50,000,000 and its paid up capital is Rs. 39,465,600. The group has an annual revenue of around USD 1.0 billion, manufacturing cotton and specialized yarns, cement, roofing and building products.
The company makes cotton and specialty yarns, as well as cement, roofing, and construction materials. It offers absorbent cotton wool for cleaning and swabbing wounds, and medicaments to wounds; cotton wool balls that are used in cleaning the wounds and for green rooms; cotton wool zig zag (pleats); and absorbent gauze for packing open wounds. The company is involved in Spinning, weaving and finishing of textiles. The company also provides gauze swabs/sponges for wound dressing, general cleaning, and minor pepping applications; pre-cut gauze products for hospital and clinics; laparotomy sponges; grey gauze (jumbo rolls); bleached gauze (jumbo rolls); and surgical bandages for orthopedic purposes. In addition, it offers roller bandages for external dressing and orthopedic purposes; triangular calico bandages that are used in arm slings, binder for splints, and tourniquets; plaster of Paris powders for medical, dental, and commercial markets; and plaster of Paris bandages. The group also offers enterprise software solutions on the cloud.
It is the largest producer of absorbent cotton, gauze, bandages and other wound-care products in Southern India. The monthly production capacity is over 125 tons of medical grade bleached cotton and over 1.5 million square meters of bandages and gauze products. Over the years, they have diversified into spinning and weaving, producing some of the world’s finest cotton yarn and manufacturing premium fabrics for shirting, bed linens and Jacquard cloth. They produce nearly 400 tons of superfine count ring-spun yarn and about 400 tons of open-end yarn per month.
Today it offers over 200 unique products with the help of a 2,200 strong workforce. The Ramaraju Surgical Cotton Mills is well known for its quality products that meet or exceed customer expectations, which has helped in building a loyal base of satisfied customers spread across the globe
The business of Ramaraju Surgical Cotton Mills is divided amongst three diverse divisions namely; Spinning division, Surgical division and Weaving division.
The Spinning Division has seen some strengthening in yarn prices. In the first two quarters of 2020-21, cotton prices were lower in India due to high levels of carry over stock due to lower consumption of cotton by Mills due to disruptions in manufacturing activities caused by CoVID-19 pandemic. After relaxations announced by the Government, the manufacturing activities were resumed. The cotton prices have gone-up by more than 30% compared to the price ruled during the initial cotton season. The prices of some of the imported cotton varieties especially the long staple fibre had also increased very steeply to the extent of 40% to 75% within a period of 3 to 4 months’ time.
Under Surgical Division, Company continues to retain its customers by delivering high quality absorbent cotton, gauze and bandages and was able to achieve steady sales during the Financial Year 2020-21. As a result, the consumption of our surgical products can be under pressure for financial Year 2021-22. Post first quarter of financial year 2021-22, hospitals are expected to pick up their operations and the Company expects to see demand for the surgical products come back to normal levels. Our margins are facing headwinds due to rising input costs associated with processing chemicals and packaging materials. Company has increased pricing to reflect higher costs and reduced its impact. The Company continues to strengthen the sales force in this segment and modernizing the production facilities to improve production efficiencies and cost reductions.
Weaving division has run a very efficient operation in 2020-21 hitting the highest weaving sales and contribution margins in the history of the Company. The wider-width fabric operation has seen good demand from all of the premier bed sheet exporters and it is expected that the trend continues. More specialized jacquard fabric has seen a dip in demand due to the market demand impacted in Africa due to CoVID-19. Company is furthermore continuing to develop new customers. In addition, the company is also taking steps for producing more value-added products. (Click here to know the latest share price of RamaRaju Surgical Cotton Mills Ltd)
The government’s assured domestic procurement and Minimum Support Price by Cotton Corporation of India along with prospects of good monsoon are likely to impact higher cotton production in 2021-22 kharif season. Minimum Support Price for next kharif season which begins in October 2021, is increased by 3.80% for Medium Staple and 3.40% for long Staple as well. So we expect that the current increasing price trend will continue in 2021-22. Imported cotton, our primary raw material, prices remain at an all-time high and we expect that to continue due to drought conditions in cotton growing regions of the US and the increased demand from China due to market sentiment against Xinjiang cotton.