Mumbai-based Texport Syndicate group has picked up about 75% in Delhi-based Vanasthali Textile Industries, a premier terry towel manufacturing unit. The company’s clients include prominent international brands like Polo Ralph Lauren, Tommy Hilfiger, Calvin Klein, Croscil, Roseby, besides volume buyers like Wal-Mart. Details on the valuation of the deal are not available yet.
Vanasthali, a listed company, clocked an export turnover of about Rs 120 crore in 2006-07. Texport Syndicate group is an exporter of readymade garments with a turnover in excess of Rs 375 crore. It has over a dozen manufacturing units in Mumbai, Bangalore, Hyderabad and Tirupur that cater to most of international labels.
Said Texport Syndicate India managing director Raju Goenka, “We have a common customer base in the export market, and the acquisition will give us an inroad into the terry towel market as well. We also intend to undertake expansions in the next year, once our turnover grows.” Rajesh Modi, the promoter- director of Vanasthali will remain associated with the management of the unit in Sahajanpur. The promoters of the group have also offered to purchase up to 20% of shares of the Vanasthali held by the public. (ET)