Mohini Health & Hygiene expands textile footprint with Winsome Yarns acquisition

In a consolidation within the Indian textile sector, Mohini Health & Hygiene has formalized its entry into yarn production by incorporating a dedicated subsidiary, Dhananya Capital. This serves as the primary instrument to execute the acquisition of Winsome Yarns, following a resolution plan approved by the National Company Law Tribunal on April 16, 2026. Valued at approximately Rs 162.90 crore, this acquisition represents a critical shift for Mohini Health & Hygiene as it moves beyond its core focus on absorbent cotton and hygiene consumables to integrate upstream textile production.

The transaction involves a comprehensive restructuring, where Dhananya Capital will acquire a 95 per cent controlling stake in Winsome Yarns. Mohini Health & Hygiene has committed an initial Rs 1.27 crore to secure a 51 per cent equity interest in the new subsidiary, with additional funding sourced through internal accruals and a sanctioned Rs 154 crore term loan from Union Bank of India. Analysts view this as a strategic move to leverage vertical integration, effectively securing a supply chain for high-quality yarn production to support both existing hygiene product lines and potential new textile offerings. The transition of control is slated for completion by July 15, 2026, marking a turning point for the distressed yarn manufacturer’s operational revival.

A specialized manufacturer primarily focused on absorbent cotton, surgical disposables, and hygiene products, Mohini Health & Hygiene operates significant processing facilities in Pithampur and Gujarat. Initially established in 2009 for cotton processing and textile trading, it has aggressively diversified into health and beauty sectors. The company is currently focused on inorganic growth via insolvency resolutions to enhance its manufacturing capacity and supply chain autonomy, maintaining a business model centered on sustainable, zero-waste production practices.