GHCL sells its home textile business to Indo Count for 608.30 cr. Details here
GHCL on Sunday completed the sale of its Home Textile business to Indo Count Industries, a leading manufacturer and exporter of Home Textiles, for a total consideration of ₹608. 30 crores. With this acquisition, Indo Count becomes the world’s largest manufacturer of home textile bedding.
The completion of the sale is effective as of April 2, 2022.
In a statement, GHCL said the total consideration for the divestiture of the Home Textiles business was calculated at ₹608.30 crores (subject to validation of the usual adjustment of the closing date of the working capital according to the definitive agreements).
RS Jalan, Managing Director of GHCL Ltd., said: “The divestiture of the Home Textiles business is a strategic move which we believe will create value for all of our stakeholders. We were able to complete the process seamlessly, on time and with all The proceeds from this divestment will continue GHCL’s growth strategy based on our vision of “Growing our business responsibly, with governance, sustainability and core values as foundations”.
Anil Kumar Jain, Executive Chairman, said, “We are extremely pleased to announce the completion of the acquisition and to warmly welcome the new team to the Indo Count family. We are confident that this foray will successfully meet our long-term aspirations and create value. for our global customers and all stakeholders,” adding, “We are thrilled with the pace at which we are progressing towards strengthening our brand into an end-to-end bedding solutions provider for global and domestic markets.”
“We believe this is an important step towards our strategic vision of achieving a tremendous leadership position in the home textile bedding industry ‘on a global scale’. Additionally, with the potential growing growth in the Indian home textile industry, we believe we are ready to market capitalize on this opportunity,” added the Executive Chairman of Indo Count.
Here is how this acquisition will propel Indo Count to a leading position in the global home textile bedding segment, according to the regulatory filing:
1. Indo Count becomes the largest Home Textile bedding manufacturer in the world, with an annual capacity of 153 million meters.
2. Potential addition of ~ ₹1,300 to 1,500 crores per year at the topline of the company at maximum capacity.
3. Indo Count adds a whole new avenue of untapped customer base, resulting in global market share gain.
4. Current customers of the GHCL Home Textile business will have access to ICIL’s full product portfolio, consisting of fashion, utility and institutional bedding.
5. Increase market share by improving capacity utilization, creating synergies and expanding product line offerings.
6. The customer-centric approach will allow ICIL to be more flexible and strengthen customer service levels, which will result in a strong global supplier and brand in the home textile industry.
At the same time, this move will allow GHCL’s management to focus on the strategic growth pillars of the Chemicals and Spinning activities.
GHCL plans to use proceeds from the sale for other initiatives such as Project Greenfield, expanding the product basket, clean energy and ESG initiatives, automation and exploring opportunities to close deals. joint ventures.
Last week on Friday, GHCL shares settled at ₹578.25 each per ₹30.35 or 5.54%, while Indo Count shares closed at ₹169.20 each per ₹10 or 6.28% on BSE.
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