MSR India Ltd, a Hyderabad-based listed company engaged in manufacturing copper products and FMCG items such as vermicelli, atta and pasta, has offered to sell its copper melting plant for ₹10 crore as part of efforts to stabilise its financial position.
The BSE-listed company said that the copper melting plants have a monthly capacity of 500 tonnes and can generate annual turnover of ₹500 crore.
In the 42nd annual report for 2024-25, MRL said that its AGM will be held on June 16, 2026 through video conferencing.
Regulatory lapses
For FY25, the company’s total assets declined sharply to ₹44 lakh from ₹25 crore, primarily due to reversal of deferred tax assets amounting to ₹25 crore. Total current assets stood at ₹44 lakh against total current liabilities of ₹3.20 crore, resulting in a net working capital deficit of ₹2.77 crore.
The company has also failed to comply with several regulatory norms, including non-payment of annual listing fees for FY25, absence of a functional website and delayed statutory filings.
Expansion plans
Incorporated in 2002, MSR India manufactures copper water bottles and other copper products catering mainly to regional markets in Telangana and Andhra Pradesh.
Despite financial stress, the company sees continued demand for FMCG products such as vermicelli, atta and pasta, and plans to expand distribution beyond its traditional southern markets.
Asset sale to ward off losses
The company has already sold a majority of its assets to repay outstanding borrowings owed to banks and financial institutions as part of efforts to stabilise its balance sheet.
It also intends to sharpen focus on copper melting and FMCG businesses during the current financial year in an attempt to recover from losses triggered during the pandemic period.
Rising costs, weak performance
Sharp inflationary pressures in raw material and logistics costs have significantly impacted profitability. According to the annual report, raw material costs increased by more than 100% compared with the previous year, while transportation expenses also rose due to higher fuel prices.
The company has not been able to fully pass on the increase in costs to customers through higher selling prices, resulting in pressure on margins and earnings. Apart from concerns over economic slowdown, employee safety remains a key priority.
For FY25, MSR India reported nil income and a net loss of ₹53.39 lakh against a total income of ₹76,000 and a net profit of ₹93 lakh in FY24.