Globe Textiles To Demerge Online Business Into Morabia Creation
Globe Textiles (India) Limited, a prominent player in the Indian textile industry, has announced a strategic demerger of its online business, comprising the INDIGENX and ORIJEAN brands, into a newly formed entity Morabia Creation Limited. The move is aimed at enhancing operational focus, unlocking shareholder value, and enabling independent growth of both business segments.
The demerger, approved by the company’s Board of Directors on July 11, 2025, involves a Scheme of Arrangement, subject to approvals from the NCLT (Ahmedabad Bench), SEBI, shareholders, creditors, and other regulatory bodies. The appointed date for the demerger has been proposed as April 1, 2025.
Following regulatory approvals, Morabia Creation Limited will be listed as a separate entity. Shares will be allotted to existing shareholders of Globe Textiles in a specified entitlement ratio. Notably, the promoters of Globe Textiles will not retain control in the demerged entity, and there will be no cash consideration, with the demerger executed via share allotment.
The online business had a turnover of Rs 020.77 lakhs in FY25, representing 0.04% of Globe Textiles’ total revenue. The demerger is expected to give the online segment greater strategic autonomy, operational agility, and a tailored roadmap for market expansion.
Commenting on the demerger, the management of Globe Textiles said, “This demerger is a well-thought-out step to empower focused strategic execution. It positions both entities for sustainable, long-term growth, driven by digital innovation and market diversification.”
Meanwhile, Globe Textiles continues its financial momentum, reporting Rs 561 crore total income in FY25, marking an 18% YoY growth from Rs 470 crore in FY24. Net profit for FY25 rose to Rs 10 crore, up 11% from Rs 9 crore the previous year. Q4 FY25 sales reached Rs 130 crore, compared to Rs 107 crore in Q4 FY24.
Earlier this year, the company successfully raised Rs 45.04 crore via a Rights Issue, allotting over 15 crore shares at Rs 3 per share. Proceeds were allocated toward equity acquisition in Globe Denwash Pvt Ltd, loan repayments, working capital, and general corporate purposes.
