Mumbai, Sept. 26
Alok Industries will acquire a 60-per-cent stake in the Czech Republic-based Mileta International (Mileta) at a cost of 13.96 million. The Indian company retains the option to acquire another 19.6 per cent.
The deal will be financed through internal accruals and borrowings.
Under the terms of the MoU, Alok will own all the apparel brands of Mileta namely, Mileta, Erba, Cottonova, Lord Nelson, Wall Street, Osaka and Erbelle. Alok also acquires licensee rights of Daks for handkerchiefs.
Mileta will provide design and marketing inputs, training and technology. Alok will also become a sourcing base for Mileta's products globally. The company will also use Mileta's brands in India to widen its retail presence.
"This acquisition is aimed at making further inroads in the growing European market and strengthening our presence in the fashion conscious apparel and home textile segments, which have been growing very fast," said Mr Dilip Jiwarajka, Managing Director, Alok Industries Ltd.