The Aditya Birla Group flagship Grasim Industries has signed an agreement to buy out the 100 per cent stake of Soktas India Private Limited (SIPL) from its current promoters for Rs 165 crore.
Soktas is a wholly-owned subsidiary of the Turkish firm Soktas Tekstil Sanayi ve Ticaret, which produces and markets premium fabrics and has its main facilities at Soke in the Mediterranean country.
The company will fund the entire transaction primarily from internal accruals. The deal will be subject to net debt and working capital adjustments, as of the closing date and also after getting all regulatory approval, according to a statement released by the company.
“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.” –Thomas Varghese, Business Head – Textiles, Aditya Birla Group
“We look forward to the ongoing success of our brands in the Subcontinent and beyond,” Soktas Tekstil chairman Muharrem Kayhan said in the statement.
