Mumbai, Dec. 19 Welspun India Ltd has acquired 76 per cent of Portugese-bath rug and shower curtain player Sorema- Tapates e Cortinas de Banho, SA at a price of Rs 60 crore, according to a company release. The two companies also signed an agreement for marketing products exclusively in Spain and Portugal and on best-effort basis in other European countries.
As part of the acquisition, Sorema management will operate the company on a standalone basis, with the exception of Mr Rajesh Mandadewala, Joint Managing Director, Welspun India, who will take over the reins as the Chairman of Sorema.
Mr B.K. Goenka, Vice-Chairman and Managing Director, Welspun Group said, “This acquisition is an extremely important one for Welspun and strengthens our commitment towards achieving our goal of becoming a globally relevant holistic player in the home textiles segment. Sorema’s experience of specialty bath products complements Welspun’s established capability and reach in the European market.”
With this acquisition, Welspun will extend high-end brands of Sorema to other home products, making available Sorema brands to the Indian consumer, use Sorema’s marketing channels for Welspun goods and extend product offerings. Sorema products in bath rugs and shower curtains will complete Welspun’s offerings and enable new production facilities of bath rug in India, said the release.
Sorema had a turnover of Rs 57 crore in financial year 2007 and has a network across 77 countries with 78 per cent of its export market concentrated in US, England, Spain and Germany.