Home textiles manufacturer and exporter Indo Count Industries said it would acquire GHCL’s home textiles business for ₹576 crore by way of a business transfer agreement.
The acquisition would be funded through a mix of internal accruals and debt and the transaction was expected to be completed by March next year, subject to necessary approvals and completion of condition precedents in the agreement, Indo Count said in a press release.
GHCL has a fully operational home textile manufacturing facility with an annual capacity of 45 million metres at Vapi in Gujarat, and has land to double the capacity in future, Indo Count added.
GHCL said in a separate statement that to have greater focus on its various businesses (chemicals and textiles), it was implementing a scheme to carve out its textile business into GHCL Textiles Limited. Meanwhile, it got an opportunity to “unlock value of its home textiles business”. The proceeds of the sale will be used to grow its core business of chemicals. The home textiles business would be transferred to Indo Count and the remaining textile business would be demerged into GHCL Textiles.
In line with the decision of a complete divestment of home textiles business, the company’s U.S.-based subsidiary, Grace Home Fashions LLC, has also entered into an Asset Transfer Agreement for transfer of identified assets to Indo Count Global Inc., USA, a U.S. subsidiary of Indo Count.
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