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Indian Rayon, an Aditya Birla group company, has emerged as India's largest branded apparel company with the acquisition of Madura Garments, the readymade garments division of Madura Coats.

The Indian Rayon board yesterday approved the acquisition for Rs 236.23 crore.

Madura Coats is a subsidiary of Coats Viyella Plc.

"The transaction involves the buyout of Madura Garments and acquisition of rights for international brands for a total consideration of Rs 236.23 crore," a company release said.

The necessary agreements for the transfer have been signed and will be effective from January 1.

DSP Merrill Lynch acted as the investment banker to Indian Rayon. Ernst & Young conducted due diligence. Mulla & Mulla and Craigie Blunt & Caroe were the legal advisors to Indian Rayon.

Indian Rayon will acquire Madura Garments with all the employees, brand licences, distribution and manufacturing networks for Rs 189.23 crore.

It will also become the owner or licensee in India for premium brands such as Louis Philippe, Van Heusen, Allen Solly, Byford, Peter England and SanFrisco.

Aditya Vikram Global Trading House, a wholly owned overseas subsidiary of Indian Rayon, will buy from Coats Viyella Plc the technology and exclusive brand righ