IIPM :: Merging, acquiring promises?

Indian haute couture bigwigs are going shopping; and more than a year since the abolition of the global quota regime (from January 1, 2005), the new ‘mantra’ for Indian textile majors to go global is through cross border acquisitions; and Malwa Industries will surely be considered a pioneer in this. The company recently announced its glamorous acquisitions of mill majors Emmetre Tintolavanderie Industriali (Italy) and Third Dimension (Jordan) for a total consideration of $11 million in May 2006. “Italy is known for its trends and knowledge in denim; and the Jordan acquisition will enable us to have a foothold in garment manufacturing with duty-free access to US & European markets,” says Tarun Chawla, President, Malwa. On another front, Gujarat Heavy Chemicals, the flagship company of Dalmia Group, acquired US-based Dan River Raymond on May 27, 2006. On a third front, marking a historic achievement, Orient Craft acquired a Levis manufacturing plant in Spain on May 14, 2006.

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Source: IIPM (Business& Economy), Editor: Arindam Chaudhuri