GROUP RELATED NEWS
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Ashok Piramal Group Eyes Acquisition Abroad
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The
Ashok Piramal Group which runs-- Morarjee Textiles Limited (MTL), having a plant
in the city is scouting for a take over in US or Europe. The group plans to buy
out a leading shirt brand in any of these places so as to add to its product range.
With a budget of 10 million Euros, the group is in talks with companies in France,
Italy, Spain and US for finalising the deal. MTL has two separate facilities for
manufacturing yarn and printing fabric at Butibori. While the group also runs
a garment manufacturing company under the name- Integra Garments which has a plant
at Bangalore.
'Taking over a leading foreign brand would add to our
competitiveness and also increase the product range. The group which makes ready-made
garments and printed fabrics has core competency in shirtings,' said MTL's Vice-Chairman
Harsh Piramal. A local partner is likely to be roped in for the acquisition deal,
he said. First the brand would be sold in the very country which it belongs to,
and later on the markets in India and Japan would be explored. There are plans
to set up a manufacturing plant for that brand in India at a later stage too,
added Piramal. The group is keen to consolidate its presence in the overseas market
and the proposed take over is a step in this direction. Already 60 per cent of
its turnover comes from exports. The group has presence in US, Europe, Middle
East as well as Japan, he said. The take over would be funded through internal
accruals and a rights issue or Rs 70 crore planned during the year.
A capital expenditure initiative of Rs 100 crore is already under way and a part
of the sum would also be used for the acquisition, he added. Institutional debt
would also be tapped if required, he said. 'We recently acquired a majority stake
in a textile processing company-- Just Textiles. This company has a processing
capacity of 1 lakh meters a day. With this the group can offer a wider range of
garments and fabrics,' mentioned Piramal. About the capital expenditure, he said
that a plan of investing Rs 100 crore has been chalked out for a three year period
beginning from the last year. Already around Rs 45 crore have been invested so
far. Around Rs 65 crore would be invested in the units in Nagpur of which already
Rs 25 crore has been invested and another Rs 25 crore and 20 crore have been planned
for the current and subsequent year respectively. This will almost double the
printing capacity to 13 million meters from 7 million meters at present. Printed
textiles is also a segment in which the company claims to have an edge over others.
An investment of around Rs 10 crore would be made in the Bangalore plant. so as
to hike the capacity to l lakh pieces a month from 40,000 at present, he said.
Source: Hitavada, June 24, 2006
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