• Ambika Cotton Mills Ltd. – Quality Cotton Yarn Manufacturer

      Introduction Ambika Cotton is engaged in the production of specialty cotton yarn which is used in the manufacturing of premium quality shirts and t-shirts. While yarn manufacturing is a commodity business, Ambika has managed to carve out a profitable niche for themselves. Consistent with the commodity nature of the business, most other companies’ margins fluctuate with the raw materials. Also, as we will see the spinning sector is characterized by over-investments during the recovery cycle, which leads to overcapacity and depressed pricing thereafter during the downturn. We will also see how in this industry Ambika has stood apart from the bunch and differentiated itself. There are two aspects to…