Following the footsteps of information technology companies and steel majors, several Indian textile firms, looking at overseas acquisitions, have formed alliances with their global counterparts to consolidate their position in the global textile export market. | |
| The alliances have been struck in most cases through joint ventures or stake acquisitions. Diversified Indian textile firm, Grasim Industries is planning to set up a joint venture in China for a viscose staple fibre-manufacturing unit. Similarly, B K Goenka-run Welspun has acquired 85 per cent stake in CHT Holdings, the holding company of Britain's leading towel brand Christy. Raymonds has forged a joint venture with Belgium's largest maker of high-end denim, United Cotton, and is targeting a turnover of $270 million this year, while Spentex Industries has acquired, a state-owned spinning company in Uzbekistan, Tashkent-Toyetpa Teksil, for $ 81 million. |
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| Joint managing director of RSWM, the owner of Mayur Suitings brand, which recently acquired 50 per cent equity stake in Sisa SA of Spain for nearly $13 million, Riju Jhunjhunwala told Business Standard that the initiative would enable the company to considerably expand its footprints in the higher value-added international yarn market. |
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| Confederation of Indian Textile Industries secretary general D K Nair said that while Indian companies have the cost competitive manufacturing base, they lack global branding and retailing capabilities. Tying up with overseas companies would help them move up the value chain and focus on the more lucrative branding and retailing business, he said. |
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| Some garment manufacturers like House of Pearl Fashions are looking at acquiring foreign brands. Chairman Dipak Seth said: "We are looking to acquire a mid-sized retail chain in the US and UK at between $50-100 million. Currently, we are in talks with 7-8 companies who have their own brands." |
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