Acknit Industries Limited has announced the closure of operations at one segment of its manufacturing unit located in Unit-1 of Falta Special Economic Zone (SEZ). The decision, approved by the company's Board of Directors on October 24, 2025, comes in response to increased US tariffs and a lack of fresh orders from other countries.

Reasons for Closure

The company cited two primary factors leading to this decision:

1. Increased US tariffs
2. Lack of fresh orders from other countries

These factors have made production at the affected segment unsustainable in the competitive market.

Impact on Company Financials

Despite the closure, Acknit Industries has assured stakeholders that the impact on the company's overall performance will be minimal:

Mitigation Measures

The company's directors are taking proactive steps to address the situation:

• Implementing measures to substitute manufacturing output through viable alternatives
• Ensuring the closure will not adversely affect the company's financials

Closure Timeline and Approval

The exact date of closure is yet to be determined, as it is subject to approval from the appropriate authorities.

Scope of Closure

It's important to note that the closure affects only one segment of Unit-1 in the Falta SEZ. The unit is divided into separate segments, and operations will continue in the unaffected areas.

This strategic move by Acknit Industries demonstrates the company's adaptability in the face of challenging global trade conditions. By closing an underperforming segment while maintaining overall operations, the company aims to optimize its manufacturing footprint and maintain its competitive edge in the market.

Investors and stakeholders will be keen to observe how this decision impacts Acknit Industries' performance in the coming quarters, particularly in light of the ongoing global trade tensions and tariff challenges.

Acknit Industries Limited has announced significant developments in its manufacturing capabilities alongside the approval of its quarterly financial results. The company's Board of Directors convened on August 4, 2025, to review and approve the unaudited financial results for the quarter ended June 30, 2025.

Manufacturing Expansion

In a strategic move to bolster its production capacity, Acknit Industries has revealed two key expansions:

1. New Industrial and Readymade Garment Facility: The company is set to operationalize a new manufacturing facility at Mouza, Gopalpur, Chandigarh, North 24 Parganas, West Bengal. This facility, dedicated to industrial and readymade garment production, is expected to become operational within the current financial year.

2. Hand Glove Manufacturing Expansion: Acknit Industries has expanded its hand glove manufacturing facilities at Falta Industrial Park, Falta Sector-III, South 24 Parganas, West Bengal. This expansion is aimed at increasing the company's production capacity in the hand glove segment.

Financial Results Approval

The Board meeting, which commenced at 3:00 PM and concluded at 5:00 PM on August 4, 2025, focused on the following key points:

• Approval of unaudited financial results for Q1 FY2026 (quarter ended June 30, 2025)
• Review of the Limited Review Report issued by statutory auditors, SRB & Associates, Chartered Accountants

Corporate Governance

In compliance with Regulation 30 & 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Acknit Industries has promptly disclosed the outcome of the Board meeting to the stock exchanges. The company's commitment to transparency is evident in its timely communication of material developments to shareholders and the market.

Shri Krishan Saraf, Managing Director of Acknit Industries Limited, signed off on the official communication to the stock exchanges, underlining the company's adherence to regulatory requirements and commitment to shareholder communication.

These developments signal Acknit Industries' focus on expanding its manufacturing footprint in the industrial garments and hand gloves sectors. The operationalization of the new facility and the expansion of existing ones could position the company for potential growth in the coming financial periods.