Textiles firm RSWM Ltd. said on Friday it had acquired 50 percent stake in Spanish yarn-maker SISA S.A. for an undisclosed sum, which would expand its footprint in the higher value international yarn market.
The deal, through RSWM's overseas unit, will give the company equal representation on SISA's board and the option to appoint key executives in the finance, marketing and commercial functions, it said in a statement.
SISA expects to benefit from lower costs of yarn from RSWM's Indian manufacturing units, and also help RSWM increase its international yarn volumes by outsourcing yarn from the company.
RSWM expects to market its specialty yarn through SISA to high-end fabric makers in Europe.
SISA reported revenue of 12 million euros in 2006 and operates a 12,000-spindle yarn capacity. It operates in the premium yarn segment.
RSWM shares ended at 86 rupees, 2.8 percent higher in a firm Mumbai market.
Source : Reuters