Grasim Industries has signed a definitive agreement to acquire the entire stake of Soktas India Pvt Ltd (SIPL) from its current promoters for an enterprise value of Rs 165 crore.
SIPL is currently a wholly-owned subsidiary of SÖKTAŞ Tekstil Sanayi ve Ticaret A.S., a producer and marketer of fabrics, with its main facilities in Soke, Turkey.
“The acquisition is in line with Grasim’s linen business strategy to strengthen its presencein 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,” Thomas Varghese, Business Head–Textiles at Aditya Birla Group said.
“This acquisition is a compelling strategic fit, and further strengthens our leadership in the premium cotton and linen fabric market in India,” he added.
At present, SIPL is in the business of manufacturing and distribution of premium cotton fabrics with its manufacturing facility in Kolhapur, Maharashtra. The company posted revenue and EBITDA of Rs 186 crore and Rs 31 crore, respectively, for the fiscal ended March 2018.
SIPL sells premium fabrics in India under the Soktas, Giza House and Excellence by Soktas brands. The company is also a supplier to leading Indian and global menswear brands.