Grasim Industries signs agreement with Soktas India

Grasim Industries Limited has signed a definitive agreement, to acquire 100% equity shareholding of Soktas India Private Limited, from its current promoters, for an enterprise value of Rs 165 crores, subject to net debt and working capital adjustments, as of the closing date.

The transaction will be funded by the company primarily out of internal accruals.

Soktas India is currently a wholly owned subsidiary of SÖKTAS Tekstil Sanayi ve Ticaret A.S., world renowned producer and marketer of fabrics, with its main facilities in Soke, Turkey.

Thomas Varghese, Business Head – Textiles, Aditya Birla Group said, “The acquisition is in line with Grasim’s Linen business strategy to strengthen its presence in the premium fabric market. Increasing disposable income, fashion and quality orientation of Indian consumers has resulted in an increase in the demand for premium fabric over the years. This acquisition is a compelling strategic fit, and further strengthens our leadership in the premium cotton and linen fabric market in India.”

The completion of the transaction is subject to requisite approvals being obtained.

Soktas India Private Limited is in the business of manufacturing and the distribution of premium cotton fabrics. Its state-of-the-art manufacturing facility is located at Kolhapur, Maharashtra. Its plant capacity is about 10 million metres per annum of finished fabric. SIPL sells premium fabrics in India under the “SÖKTAS”, “Giza House” and “Excellence by SÖKTAS” brands.

The company is also a preferred supplier to leading Indian and Global menswear brands. In Fiscal March 2018, SIPL reported revenue and EBITDA of Rs 186 crores and Rs 31 crores respectively.

Grasim Industries Limited is the flagship company of the Aditya Birla Group. It started as a textiles manufacturer in India in 1947. Today, it is a leading global player in VSF and the largest chemicals (Chlor-Alkali-s) player in India.

Leave a Reply

%d bloggers like this: