Mumbai, Aug 21: Textile firm Spentex Industries Ltd
today said it has completed the acquisition of Uzbek spinning
firm Tashkent To'ytepa Tekstil for nearly Rs 380 crore, making
the company India's largest spinning enterprise.
In a filing on the Bombay Stock Exchange the company said
the buyout, which was completed yesterday, would catapult the
company as the country's biggest yarn manufacturer with an
installed capacity of over 5.70 lakh spindles.
Spentex said it was funding the acquisition through a
combination of internal accruals, equity funding by CitiGroup
in the special purpose vehicle set up in Netherlands and
borrowings from ICICI Bank.
The transaction comprises acquisition of two
manufacturing facilities in the cities of Tashkent and
To'ytepa. These plants are the largest yarn manufacturing
facilities in Central Asia with a combined installed capacity
of 2.20 lakh spindles and a weaving capacity of 236 air jet
looms, Spentex said.
The purchase happened under the privatisation programme
of the government of Uzbekistan and Spentex would get a number
of incentives including 15 per cent discount on raw cotton
apart from exemption on corporate taxes, customs duty and
value added tax.
The company had recently acquired Indo Rama Textiles for
Rs 220 crore.
Bureau Report