Kallam Textiles Limited , a prominent player in the Indian textile industry, has received a significant financial boost from the Government of Andhra Pradesh. The company recently announced that it has been granted an interest subsidy of Rs 3.30 crores under the state's Industrial Development Policy (IDP).

Key Details of the Subsidy

Implications and Transparency

This development marks a positive step for Kallam Textiles, potentially enhancing its financial position and operational capabilities. The interest subsidy, part of the state government's efforts to promote industrial growth, could contribute to the company's ability to manage its debt more effectively or invest in its operations.

In line with regulatory requirements, Kallam Textiles has promptly notified the Bombay Stock Exchange about this financial update. This transparency aligns with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements, ensuring that shareholders and potential investors are kept informed of significant financial developments.

About Kallam Textiles Limited

Kallam Textiles Limited, formerly known as Kallam Spinning Mills Limited, is a textile manufacturing company based in Guntur, Andhra Pradesh. The company has been an active participant in the state's industrial landscape.

This government support through the interest subsidy reimbursement underscores the ongoing efforts to bolster the textile sector in Andhra Pradesh, potentially contributing to the broader economic development of the region.

As the textile industry continues to be a significant contributor to India's manufacturing sector, such government initiatives play a crucial role in supporting companies like Kallam Textiles, potentially enhancing their competitiveness and sustainability in the market.

Kallam Textiles Limited , a player in the textile industry, is facing a financial challenge as Union Bank of India has issued notices for public e-auction of its assets. This development comes as an escalation of the previously reported notice under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

Key Details of the E-Auction Notice

• Issuing Bank: Union Bank of India
• Auction Date: December 30, 2025
• Outstanding Dues: Rs. 185.35 crore
• Assets for Auction: Spinning unit and hydel unit assets
• Total Reserve Price: Over Rs. 147.00 crore
• Assets Include: Industrial land, machinery, and hydro power project assets

This e-auction notice indicates that Kallam Textiles has been unable to comply with earlier demand notices, leading to this action by the bank.

Implications

The issuance of e-auction notices suggests that Kallam Textiles is facing financial challenges:

1. Asset Loss: If the auction proceeds, the company may lose operational assets, including its spinning unit and hydel unit.
2. Financial Impact: The potential sale of assets worth over Rs. 147.00 crore could affect the company's operational capacity.
3. Debt Recovery: Union Bank of India is taking steps to recover its outstanding dues of Rs. 185.35 crore.

Conclusion

This situation represents a critical juncture for Kallam Textiles Limited. The outcome of this e-auction, if it proceeds, could have consequences for the company's operations and financial position. Investors and stakeholders may want to monitor further announcements from both Kallam Textiles and Union Bank of India regarding this matter.