Corporate
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Mergers & Acquisitions
Pioneer Embroideries to buy South Korean factory unit
Our Bureau
Mumbai
,
Feb. 16
PIONEER Embroideries Ltd (PEL) announced on Tuesday that it had finalised plans to acquire the complete embroidery manufacturing facilities of a South Korean company for $3 million.
The plant, which will arrive at Mumbai port soon, will be installed at PEL's existing facility at Naroli near Silvassa and the machines are to be fully operational by July 2005. Of the 13 machines being imported, 10 are of the Hiraoka brand and the rest are of the Hitachi-Seiki brand.
The acquisitions will enhance Pioneer's embroidery and laces capacities by 33 per cent. The total cost of expanding capacities will be about Rs 20 crore.
According to Mr Harsh Bassi, Executive Director, PEL, the South Korean firm's entire design library, of over 12,000 designs, had also been acquired.
PEL, he said, had orders booked ahead for several months. Direct and indirect exports, he said, constituted about 27 per cent of the company's Rs 100 crore turnover.
For the quarter ended December 31, 2004, PEL posted sales of Rs 32.47 crore and net profit of Rs 3.5 crore.
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