Mumbai: Birla group flagship Grasim Industries has signed an agreement to acquire Soktas India from its Turkish promoters for Rs 165 crore. Soktas is a wholly-owned subsidiary of the Turkish firm Soktas Tekstil Sanayi ve Ticaret, which produces and markets premium fabrics and has its main facilities at Soke in the Mediterranean country.
With a plant at Kolhapur in Maharashtra, Soktas manufactures and distributes premium cotton fabrics in the country and markets its fabrics under the brand names of Soktas, Giza House and Excellence by Soktas. “The acquisition is in line with our linen business strategy to strengthen our presence in the premium fabric market. It further strengthens our leadership in the premium cotton and linen fabrics market in the country,” Aditya Birla group’s business head for textiles Thomas Varghese, said in a statement Wednesday.
The company will fund the entire transaction primarily from internal accruals. The deal involves acquistion of 100 percent stake of the Turkish company. The deal will be subject to net debt and working capital adjustments, as of the closing date and also after getting all regulatory approval, the statement added. “We look forward to the ongoing success of our brands in the Subcontinent and beyond,” Soktas Tekstil chairman Muharrem Kayhan said in the statement.
