In a recently issued release the Donear Group announced its acquisition of Grasim Bhiwani Textile Limited which is a poly-viscose suiting fabrics subsidiary of Grasim Industries. Terming the acquisition as a “strategic move,” the Donear release stated, ‘This will significantly enhance our profile and addressable market in the global textile space.”
“The acquisition of Grasim Bhiwani Textile Limited (GBTL) gives Mumbai-based Donear Group a strategic edge in global textiles business in terms of world-class production capabilities to market products and access to the marquee customers globally,” the release added.
GBTL is the country’s largest manufacturer of PV and PW Suiting, selling its products under the “Grasim” and “Graviera” brands in India and 25 and odd countries outside India. The biggest strengths of GBTL are its quality-conscious trade partners and global customers, who have been associated with them for a long time. GBTL caters to international fashion houses in the US and the UK, supplying fabric to them for making garments. These garments are available in some of the largest retail chain stores. The Donear Group aims to build further on GBTL’s existing strengths.
Talking about the acquisition,Rahul Rajendra Agarwal, Director, Donear Group said, “The GBTL acquisition is driven by our desire to expand our business both pan India as well as in global markets, and progress towards our strategic goal to become the recognized leader in products and services we offer and increase our market share. This GBTL acquisition will utilize strengths of both partners in terms of infrastructure, manpower and product portfolio. Apart from the world-class production capabilities, the acquisition also gives Donear an access to strong nation-wide retail network, wholesalers and multi-brand outlets through which we will expand our reach.”
The textile-focused Donear Group has been scouting for a larger addressable market with additional product categories. The terms of the transaction are not announced yet, and will be disclosed at the appropriate forums through wider communication to all stakeholders. The acquisition has been funded by the promoters of Donear, and there is no plan to bring in any strategic investor – Indian or foreign – on board as of now. However, there are plans to bring in strategic stakeholders in due course of time.
S Krishnamoorthy, Managing Director of GBTL, appointed by Donear Group said, “Existing market conditions offer abundant opportunities for companies with robust infrastructure and in-house manufacturing capacities, different types of product categories, good customer base, speed to market and absolute focus on textiles as their core business. In India, huge opportunity exists for fabric in Over-the-Counter (OTC), Readymade Garments (RMG) and exports segments. Taking on the vision of “Make in India", both Donear & GBTL will maintain their individual identities and will stay committed to offer best products and services to their valued customers as one team.”
Talking about the management of the two units post acquisition, Agarwal said, “The GBTL plant will be run by existing Unit management with additional benefits of expert advice from Donear promoters. We assure to our internal and external customers that there will be no change in the work culture and they will continue to experience the same services at all stages. Over time, we will leverage synergies to create a stronger entity with formidable presence in Indian fashion textiles industry.”
Post-acquisition, in the medium term, both entities will continue to focus on their respective brands like Grasim Suiting and Graviera Suiting (GBTL); and Donear and Royal Classico Suiting (Donear) in India as separate teams. The management will continue its efforts to strengthen and utilize their combined product basket to serve to its customers. Donear will continue its focus on the OTC segment while strengthening its network pan-India and will expand its product portfolio in domestic and international market.