India-based Grasim Industries, owned by Aditya Birla Group, has acquired textile company Soktas India Private Limited (SIPL) for Rs. 165 crore.
The company operates brand SOKTA, Giza House and Excellence by SOKTA in the premium fabric segment.
It’s a wholly-owned subsidiary of SOKTAS Tekstil Sanayi ve Ticaret A. S., a fabric manufacturer operating from.
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It is expected that the transaction will help Grasim to reinforce its existence in the segment.
“The acquisition is in line with Grasim’s Linen business strategy to strengthen its presence in the premium fabric market. Increasing disposable income, fashion and quality orientation of Indian consumers has resulted in an increase in the demand for premium fabric over the years,” said Thomas Varghese, Business Head (Textiles), Aditya Birla Group.
The transaction will be funded by the company primarily from its internal accruals and the payment would be subject to net debt and working capital adjustments, as of the closing date, read a statement.
SIPL will turn into a wholly-owned subsidiary of Grasim upon the completion of the transaction.
The fabric manufacturer has a unit in Kolhapur with a production capacity of about 10 million metres per annum of finished fabric.
Notably, the textile company (SIPL) had a revenue of Rs. 186 crore in 2017-18.