Financial Daily from THE HINDU group of publications
Tuesday, May 09, 2006
Financial Daily from THE HINDU group of publications Tuesday, May 09, 2006 |
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Corporate
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Mergers & Acquisitions Indus Fila buys fabric unit of Sai Lakshmi Ind Our Bureau
Bangalore , May 8 Apparel maker Indus Fila has acquired the fabric division of Sai Lakshmi Industries Pvt Ltd for Rs 90 crore. A press statement from Indus Fila said that it had acquired total assets of the Mysore-based company, which includes 63.29 acres land, 4.7 lakh sq ft. building, modern plant and machinery along with required utilities, current assets and liabilities on a going concern basis. The acquired unit is a fully integrated weaving, processing and finishing unit with a capacity of 50,000 metres per day and a co-generation power plant of 6.5 MW. The acquisition would add about Rs 120 crore to Indus Fila's turnover besides improving the bottom line on account of backward integration for its shirting, dyeing and finishing. Sai Lakshmi Industries is a part of the Sainath group based out of Indonesia. "We are now planning to double the capacity of this acquired unit to 1,00,000 metres per day, as utilisation efficiency of the utilities installed would be optimised, which, in turn, would help in bringing down the costs," Indus Fila's Vice-Chairman and Managing Director, Mr Nitin Mandhana said in a statement. "The acquisition of the fabric division of Sai Lakshmi Industries fits like a missing piece in our vertical integration plans. We have saved ourselves 2-3 years time that would be required to implement such a state-of-the-art facility. It gives us a very strong head start in achieving our vision to be a dominant player in the area of fashion textiles and apparel by focusing on product innovation, design leadership and superior service," Mr Mandhana said.
More Stories on : Mergers & Acquisitions | Readymade Garments
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