New Delhi, Delhi, India
GHCL Limited has signed an agreement to acquire over 100 % of the shares of UK's largest home textiles retailer- Rosebys. The acquisition has been done at a cost of $40 Million.
The Equity cost of acquisition will be funded through the resources raised from various domestic & foreign institutions in the recent past. The acquisition process is likely to be completed by October 2006, after which GHCL would have a complete control over Rosebys's operations.
Rosebys has a strong presence in bedding, curtains and kids garments with over 300 retail outlets across UK and an annual turnover of close to $ 250 million. More than 2000 are currently being employed by Rosebys in UK.
Post acquisition GHCL would become world's only integrated home textiles company with presence across spinning, weaving, product design & development, sourcing and distribution to retail stores at a global level.
Mr. Sanjay Dalmia- Chairman, GHCL Limited said, "This acquisition provides us with an ideal opportunity to leverage Rosebys's established platform across the EU markets and a renowned global brand in order to make GHCL one of the dominant player in the Home textile space globally."
"It would be ideal combination of low cost strong manufacturing base with a large established marketing platform to put us on the fast track growth".
In the textiles arena, GHCL has earlier acquired Dan River Inc., which is the leading player in the US textile markets with a turnover of US$ 250 Million in Home Textiles. It has a widest sales & distribution network within US catering to the largest retailers and preferred supplier to large retailers like JC Penny and Linen & Things, Wal-mart, Bed, Bath & Beyond. With these acquisitions, GHCL is set to enter into $ 40 billion USA and UK market accounting for the 60% of the global home textiles trade.
GHCL in India is already in the process of expanding its capacity in spinning from 85000 spindles to 140000 spindles over the next 18 Months. The company has put in the process of completing the state-of-art home textile manufacturing facility at Vapi at a cost of Rs.230 crores, the production for which has commissioned in last couple of months.
Vapi unit at 90% capacity is likely to generate US $ 100Mn in revenues. Post expansion GHCL would become first company in India to have integrated production facilities from spinning, weaving, finishing to making up and would rank amongst top 3 players in India in the fast growing Home Textiles segment.
In the Chemical's space GHCL's subsidiary had earlier acquired the controlling stake in SC Bega Upsom in Romania. With these acquisitions, GHCL's Global Capacity would be 18,00,000 MTPA on completion of expansion programs in Indian & Romania from the current capacity of 600,000 MTPA
About GHCL:
GHCL, a multi product progressive organization, is a part of the eminent and reputed Dalmia Group. The company is also moving up the textile value chain into the value added segment of home textiles for the export markets for which it is currently implementing its Home Textiles project at Vapi in Gujarat with an investment of Rs. 230 Crores, which has commenced commercial production by March 2006. The company has closed the year 2005 with a total turn over of Rs 5159 million and a Net Profit of Rs. 713 million.
Harsh Wardhan, Mutual PR, +91 9810162711 harsh@mutualpr.com
Source: GHCL Limited (Business Wire India)
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