MUMBAI, 11 july, 2017 (GPN) : In a strategic move that will significantly enhance its profile and addressable market in the global textiles space, the Donear Group has announced acquisition of Grasim Bhiwani Textile Limited, the Poly-Viscose Suiting Fabrics subsidiary of Grasim Industries. The acquisition of Grasim Bhiwani Textile Limited (GBTL) gives Mumbai-based Donear Group a strategic edge in global textiles business in terms of world-class production capabilities to market products and access to the marquee customers globally.
GBTL is the country’s largest manufacturer of PV and PW Suiting, selling its products under the “Grasim” and “Graviera” brands in India and 25+ countries outside India. The biggest strengths of GBTL are its quality-conscious trade partners and global customers, who have been associated with them for a long time. GBTL caters to international fashion houses in the US and the UK, supplying fabric to them for making garments. These garments are available in some of the largest retail chain stores. The Donear Group aims to build further on GBTL’s existing strengths.
Addressing to the media persons about the acquisition, Rahul Rajendra Agarwal, Director, Donear Group said, “The GBTL acquisition is driven by our desire to expand our business both PAN India as well as in global markets, and progress towards our strategic goal to become the recognized leader in products and services we offer and increase our market share. This GBTL acquisition will utilize strengths of both partners in terms of infrastructure, manpower and product portfolio. Apart from the world-class production capabilities, the acquisition also gives Donear an access to strong nation-wide retail network, wholesalers and multi-brand outlets through which we will expand our reach.”
The textile-focused Donear Group has been scouting for a larger addressable market with additional product categories. The terms of the transaction are not announced yet, and will be disclosed at the appropriate forums through wider communication to all stakeholders. The acquisition has been funded by the promoters of Donear, and there is no plan to bring in any strategic investor – Indian or foreign – on board as of now. However, there are plans to bring in strategic stakeholders in due course of time.
S Krishnamoorthy, Managing Director of GBTL, appointed by Donear Group said, “Existing market conditions offer abundant opportunities for companies with robust infrastructure and in-house manufacturing capacities, different types of product categories, good customer base, speed to market and absolute focus on textiles as their core business. In India, huge opportunity exists for fabric in Over-the-Counter (OTC), Readymade Garments (RMG) and exports segments. Taking on the vision of “Make in India”, both Donear & GBTL will maintain their individual identities and will stay committed to offer best products and services to their valued customers as one team.”
Talking about the management of the two units post acquisition, Agarwal said, “The GBTL plant will be run by existing Unit management with additional benefits of expert advice from Donear promoters. We assure to our internal and external customers that there will be no change in the work culture and they will continue to experience the same services at all stages. Over time, we will leverage synergies to create a stronger entity with formidable presence in Indian fashion textiles industry.”
Post-acquisition, in the medium term, both entities will continue to focus on their respective brands like Grasim Suiting & Graviera Suiting (GBTL) and Donear & Royal Classico Suiting (Donear) in India as separate teams. The management will continue its efforts to strengthen and utilize their combined product basket to serve to its customers. Donear will continue its focus on the OTC segment while strengthening its network pan-India and will expand its product portfolio in domestic and international market.
About Donear Industries Limited: Donear Industries Limited is well-recognized in India and outside as one of the best-quality product makers and innovators, who have been in business for 30+ years. The promoters treat textiles as the Group’s core business and have been putting best efforts to grow year on year. It has production capacity of around 45 lakh meters per month with latest technologies and machinery at Surat. Apart from being a leader in India, Donear also has a strong presence in 20+ countries globally. With a comprehensive product basket, the company is able to supply fabrics to India’s largest brands including Louis Phillipe, Van Heusen, Peter England, Blackberry, Arvind, Wills Lifestyle, Future Group and more. In retail, the Donear Group has a strong network of 185+ stores, marketing textiles under the D’Cot & Donear NXG brands with positive cash flow.Ends