The Hindu Business Line : S Kumars close to Rs 500-cr overseas buy

Mumbai, Dec. 15 S Kumars Nationwide Ltd has zeroed in on a European company to make its first overseas acquisition of around Rs 500 crore, Mr Anil Channa, Deputy Managing Director, told Business Line on the sidelines of a press conference.

The funds for the purpose will arise out of overseas debt financing along with internal accruals. The company is evaluating the option of either buying it out or forming a small joint venture with a majority stake, he said.

The company plans to build a back-end in place for manufacture of shirting and home textiles to support the acquired front-end.

“With this acquisition, we will get a ready market, distribution network and strong brand equity on board,” said Mr Channa.

He refused to reveal the name of the company as the company is in the final stages of negotiations and would make the announcement in the first quarter of next year.

Overseas exports

S Kumars has consciously had a low presence in the overseas market till now, Mr Channa said, with exports of shirting amounting to 60 per cent and home textiles 30 per cent. The company targets a turnover of Rs 1,700 crore for the year ending March 2008.

Meanwhile, Carmichael House, the home textile division of SKNL, launched a collection in association with designer Raghavendra Rathore.

The range is a medium priced collection of bed sheets, towels, cushion covers and home linen, ranging from Rs 995 to Rs 4,000 available at 40 exclusive stores and 600 multi brand outlets across the country. The company is targeting sales of Rs 35-40 crore annually from this collection.

“We intend to increase our presence in the Rs 250-crore domestic home textile segment and are contemplating exports,” said Mr Aloke Banerjee, Chief Executive Officer, Total Home Expressions. The home textile segment of S Kumars posted a turnover of Rs 199 crore last year and plans to touch Rs 240 crore by March 2008, he added.

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