Market expansion follows acquisitions for textile companies
23 Sep '06
2 min read
Larger the size, greater the chances of becoming king in Indian Textile Industry - this is the buzz right now. Companies belonging to spinning, processing and garment segments are in real hurry to expand their operations.
For example, in July, textile yarn company, Spentex Industries bought out Tashkent-To'yetpa Tekstil Ltd, an Uzbekistani enterprise for Rs356 crore. It had also bought 84 percent share in Indo Rama textile for Rs220 crore earlier on.
Company is still on the look out for other takeovers in India as well as aborad. It is adding another 86,000 spindles in its existing units at Baramati and Sholapur.
On the other hand, Welspun India got 85 percent share for Rs132.6 crore in CHT holdings Ltd, the holding company of Christy Towels which is a leading towel brand in UK.
In June, Rosebys, largest home textile maker of UK with an annual turnover of $200 million was taken over by Gujarat Heavy Chemicals Limited (GHCL). Before this, it had taken over US textile maker Dan River for US$93 million.
All the above development point out to the fact that Indian textile companies are eager to increase their market share and competitiveness by following the acquisition path as starting a new plant takes three to four years while an acquisition give instant increase in production capacity.
marketing@alchempro.com
