Industry sources say Arvind Mills is aggressively exploring possibilities of acquiring companies which are mainly into making suitings, both in India as well as abroad, and may be even close to an acquisition.
The company is negotiating with a textile company in Italy for purchase of machinery; talks are at a primary stage with players in Egypt for a possible tie-up / acquisition while it is already in the race to take over OCM, known for its all wool-worsted and wool-blended worsted suitings.
The company executives neither confirmed nor denied these developments.
According to an analyst,' Right from denims to garments, they have a nice product mix. The only missing link is suitings.' It is also in the process of identifying other Indian suiting manufacturers for possible tie-ups, say sources.
Five companies, three foreign institutions and two domestic textiles manufacturers responded to the Asset Construction Company (India), which had been looking for a buyer for OCM India.
WL Ross, one of the world's largest stressed asset management funds and Arvind are being seen to be the most serious bidders.
In 1972 Birlas took over OCM and its production facilities were converted to manufacturing worsted fabric from carpets and carpet yarn.
The company will concentrate on de-risking the cyclical business by verticalisation and renewed focus on the domestic market and the efforts will be visible in near future.
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