Acquisition is the key for textile machinery shortfall
27 Jan '06
1 min read
Textile recession in developed countries of the US and EU has opened up new vistas of acquisitions for Indian companies.
More and more companies from India are going for acquisitions in Europe and US in search of modernization.
First, export-oriented company Orient Craft acquired Levi's unit in Spain for Rs60 crore about three months ago; after this acquisition, the trend sets other such acquisitions in motion.
Now the industry is looking for more such examples to take full advantage of ultra-modern machinery and manpower of those companies to bolster itself, said Sudhir Kharbanda, President of Garment Exporters' Association.
However, this trend may not be restricted to machines alone.
Industry experts believe that textile industry has found a solution for the problem of deficit of domestic machinery production.
Another company GHCL acquired American company Dan River for $17.5 million in recent times.
After the acquisition, Dalmia-owned company can access to Dan River's marketing arrangements, to the tune of $200 million.
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