Kothari Group sells Punjab mill to Cedaar Textile

Kothari Group sells Punjab mill to Cedaar Textile

KOLKATA based Kothari group has executed an agreement for sale of its North India Spinning Mill (NISM) unit.

The sum received from the sale is Rs 67 crore (about $9 million) after adjustments with respect to surplus/deficit of assets over liabilities, the filing stated.

Established in September 2020 with a corporate office in Bengaluru, Cedaar has a factory in Ludhiana manufacturing yarn and fabric and also providing spinning, knitting and dyeing with a focus on organic and recycled fibres.

In September last year, Kolkata-headquartered Gillanders Arbuthnot & Co had received shareholders’ approval for sale of its unit.

“The textile industry in general and spinning industry in particular have been passing through a huge crisis mainly due to poor demand in both domestic and international markets.

The cotton spinning mills are highly dependent on export of yarn, which was down by about 30% in 2019-20, resulting in a big crisis for the spinning mills,” the company had said in its annual report for 2019-20.

Covid-19 further affected the industry.

As on December end, the promoters Kothari family and group companies held 68.74% stake in the firm and Life Insurance Corporation of India (LIC) 4.80%.

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