Aditya Birla Group’s garment arm Grasim Industries would be making a complete acquisition of textile firm Soktas India for a value of Rs 165 crore. Soktas India Private Limited (SIPL) has presence in the premium fabrics segment under the brand name of SOKTA, Giza House and Excellence by SOKTA. The deal would help the Aditya Birla group to strengthen its presence in the segment. The transaction would be funded by the company primarily from its internal accruals and the payment would be subject to net debt and working capital adjustments, as of the closing date, said a joint statement.
SIPL 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.
Today, SIPL 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 INR 186 crores and INR 31 crores respectively.
Says Thomas Varghese, Business Head – Textiles, Aditya Birla Group, “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 have 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.”
Says Muharrem Kayhan, Chairman, SÖKTAS Tekstil Sanayi ve Ticaret A.S. “We have no doubt that SIPL will continue to grow under the leadership of Grasim. We look forward to the ongoing success of our brands in the subcontinent and beyond.”
Grasim already has a significant presence in India’s premium linen fabric market, through its leading brand “Linen Club”. It is India’s top linen fabric manufacturers. Its Linen Club, has given the evolving Indian fashion industry an edge, which will be further bolstered by the “SÖKTAS”, “Giza House” and “Excellence by SÖKTAS” brands.
The completion of the transaction is subject to requisite approvals being obtained.