Rajapalayam Mills Limited, a prominent player in the textile industry, has announced a strategic move to strengthen its position in the building materials sector. The company's board of directors has approved an additional investment of up to ₹15.8 crore in its associate company, Ramco Industries Limited (RIL), through a promoter group inter-se transfer arrangement.

Investment Details

The investment will be made by purchasing shares of Ramco Industries from Smt. Alagaraja Ramalakshmi, a member of the promoter group of both Rajapalayam Mills and RIL. This transaction is set to be executed at the prevailing market price, ensuring an arm's length approach to the related party transaction.

Strategic Rationale

Rajapalayam Mills' decision to increase its stake in Ramco Industries appears to be driven by the strong performance of its existing investment. The company disclosed that its current investment of ₹89.94 crore in RIL has appreciated significantly to ₹363.47 crore, based on current market value.

About Ramco Industries

Ramco Industries Limited, a member of the Ramco Group of Companies, specializes in manufacturing Fiber Cement (FC) sheets and Calcium Silicate Boards (CSBs). The company also engages in power generation through windmills. RIL has demonstrated steady financial performance over the past three years:

Transaction Timeline and Structure

The board has stipulated that the acquisition should be completed within six months from the date of approval. The investment will be made in cash, either in a single tranche or multiple tranches, up to the approved limit of ₹15.8 crore.

Implications for Ownership

Post-transaction, there will be no change in the management control of Ramco Industries. The promoters and promoter group currently hold 54.81% of the paid-up capital of RIL, and this ownership structure is expected to remain stable.

Regulatory Compliance

The investment has been approved in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. No additional governmental or regulatory approvals are required for this transaction.

This strategic investment by Rajapalayam Mills in Ramco Industries underscores the company's confidence in the building materials sector and its commitment to strengthening its portfolio within the Ramco Group of Companies.

Rajapalayam Mills , a prominent player in the textile industry, has made significant announcements following its board meeting held on August 11, 2025. The company has appointed a new independent director and released its financial results for the first quarter.

New Independent Director Appointment

The Board of Directors, based on the recommendation of the Nomination and Remuneration Committee, has appointed Justice Smt. Chitra Venkataraman (Retd) as an Additional Director under the Independent Director category. This appointment is effective from August 11, 2025, and she will hold office until the conclusion of the ensuing Annual General Meeting.

Justice Venkataraman, aged 73, brings a wealth of experience to the board. A graduate in Economics from Ethiraj College, Chennai, and holding a law degree from Law College, Chennai, she specialized in Direct and Indirect tax laws during her legal career. Her professional journey includes:

• Serving as a Government Pleader from 1991 to 1995
• Standing counsel for Income Tax for a decade
• Elevated to the position of Judge at the Madras High Court in 2005, retiring in April 2014

Her corporate governance experience is extensive, having served as an Independent Director on the boards of LMW Limited, The Ramco Cements Limited, and Ramco Industries Limited. Currently, she holds Independent Director positions at Ramco Systems Limited and Super Sales India Limited.

Financial Performance for Q1

Rajapalayam Mills reported its unaudited financial results for the quarter ended June 30, 2025:

On a standalone basis, the company reported:

• Total income of ₹19214.00 lakhs
• Net loss of ₹1225.00 lakhs

Consolidated results show:

• Net profit of ₹812.00 lakhs
• The turnaround was primarily due to a ₹2037.00 lakhs share of profit from associates

Other Key Decisions

1. The Board has approved providing an additional Corporate Guarantee of up to ₹50 crore for Sandhya Spinning Mill Limited.

2. Subject to shareholder approval, the Board has sanctioned:

   • Additional investments, loans, guarantees, and securities up to ₹150 crore.
   • Material related party transactions with Ramco Industries Limited, Sandhya Spinning Mill Limited, Sri Vishnu Shankar Mill Limited, and The Ramaraju Surgical Cotton Mills Limited, up to ₹450 crore each for three financial years (FY 2025-26 to FY 2027-28).

These strategic decisions and the appointment of Justice Venkataraman reflect Rajapalayam Mills' efforts to strengthen its governance and financial position in a challenging market environment.