WL Ross & Co LLC private equity investor enters India with the acquisition of OCM India Limited for $37 million in cash (Rs. 170 crores).
OCM has a state-of-the-art worsted textile manufacturing facility that is one of the first ISO 9001 certified mills in India. It is vertically integrated, from fiber to fabric and has 34,000 spindles, 185 looms and 12 auto coners.
OCM is one of the leading brands in the worsted fabric market and well known for its tweed and jacket suitings sold through 60 wholesalers and over 1,200 retailers across the country, and also markets globally.
WL Ross entered the textile industry in 2003 through the acquisition of Cone Mills and Burlington Industries to create one of the largest textile companies in the world International Textile Group (ITG) with investments in US, Mexico, Latin America, China, Vietnam and Nicaragua.
ITG products include denim, synthetics, worsted wool and cotton fabrics for apparel and interior furnishings which are produced, marketed and sold globally. Mr. Wilbur L. Ross, Jr., Chairman and CEO of WL Ross said, "OCM establishes us in India's textile sector and further adds to the resources and synergies of our textile holdings. We expect rapid growth there in the future."
The acquisition of OCM is being made pursuant to a Scheme of Arrangement between Birla VXL Limited and its existing lenders, creditors and shareholders and OCM and its shareholders and being carried out through The Asset Reconstruction Company of India ("Arcil").
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