As part of a strategic business initiative, the Donear Group, Mumbai has announced acquisition of Grasim Bhiwani Textile Limited (GBTL). Donear Industries Limited has production capacity of around 45 lakh metres fabric per month with latest technologies and machinery at Surat. With a strong presence in more than 20 countries globally, the Group has a network of more than 185 stores in India, marketing textiles under the D’Cot & Donear NXG brands with positive cash flow.
The acquisition of GBTL gives Donear Group an added edge in global textiles business in terms of world-class production capabilities to market products and wider access to the customers globally. This will also significantly enhance Donear’s profile in the global textiles space. The terms of the transaction are not announced yet as Donear Group said, “It 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, the strategic stakeholders may be included in due course of time.
Rahul Rajendra Agarwal, Director, Donear Group said, “The GBTL acquisition is driven by our desire to expand our business both in PAN India as well as in global markets, and progress towards our strategic goal to become the recognized leader in products and services that we offer and increase our market share. This 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 nationwide retail network, wholesalers and multi-brand outlets through which we will expand our reach.”
Talking about the management of the two units post acquisition, he further added, “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 the time, we will leverage synergies to create a stronger entity with formidable presence in Indian fashion textiles industry.”
Confirming on their independent operations, S. Krishnamoorthy, MD, GBTL (appointed by the Donear Group) stated that opportunities for fabric in Over-the-Counter (OTP), apparels and exports segment are huge in India. Therefore, even with the common vision of “Make in India”, both Donear and GBTL will maintain their individual entities and fulfil their commitment of offering the best of products and services to their customers as one integrated team. Thus, Donear will continue its focus on the OTC segment while strengthening its network PAN Inda and will expand its product portfolio in domestic and international market.
It is to be noted here that GBTL is a subsidiary of Grasim Industries and India’s largest manufacturer of Poly-Viscose (PV) and Poly Wool (PW) suiting fabrics. It sells its products under the “Grasim” and “Graviera” brands in India. GBTL also caters to international fashion houses in the US and the UK, supplying fabric to them for making garments which are available in some of the largest retail chain stores. The Donear Group aims to build further on GBTL’s existing strengths.
