Textile firm S Kumars Nationwide (SKNL) has approved the demerger of its division Reid & Taylor, into a subsidiary of the parent company.
Reid & Taylor has been operating as a division and is in the business of luxury textiles and ready-to-wear garments. The new subsidiary, Reid & Taylor (India), will focus only on the rapidly growing brand ‘Reid and Taylor’ – a luxury brand for men and will encompass the entire spectrum of male attire and presentation, the company statement added.
This arm will benefit from a sharper business focus as a business entity and is aimed to consolidate Reid & Taylor’s position at the higher end of the textile business, SKNL added. This subsidiary will capture a bulk of this rapidly growing, high profit margin segment.
SKNL also has plans to bring private equity investors in the demerged entity before going in for an IPO, it said. (ET)