Enkay Disposes Textile Division For Rs 71 Crore

The Goyals of Enkay Texofood have sold their textile division to a Mumbai-based closely held private firm Adinath Filament Ltd for a consideration of Rs 71 crore.

As per the agreement reached between the two companies, there wil be no cash consideration involved the deal as Enkay will transfer the debt to the tune of Rs 71 crore to Adinath Filaments Ltd.

When contacted, the Enkay Texofood vice-chairman-cum-managing director Tulsi Goyal declined comment on the development. The textile units include 14 texturising, twisting and dyeing machines with an installed annual capacity of 10,128 spindles.

According to sources associated with the deal, both the parties had signed the agreement recently and the proposal is being for forward to the financial institutions for approval.

The entire debt restructuring exercise will be decided by the financial institutions shortly as the proposals is slated to be taken at the forthcoming head of institutions meeting (HIM).

Enkay Texofood has two divisions - textiles and food division manufacturing orange juice under the Onjus and Life brand name. While the food division is a profit making company, the textile division has been incurring losses for around three years. The textile division turnover has been consistently dropping for quite some time.