July 15, 2024
Corporates

Globe Textiles To Acquire Globe Denwash For Propelling Growth In Sustainable Fashion

Globe Textiles India Ltd (GTIL), a leader in the textile industry, has revealed plans for an acquisition aimed at propelling its growth trajectory and reinforcing its commitment to sustainability. The acquisition of Globe Denwash Pvt Ltd will be facilitated through the purchase of shares, marking a significant step in GTIL’s forward integration strategy.

The acquisition is expected to fuel a substantial increase in revenue, with projections indicating a potential rise of up to 30% over the next three years, culminating in a consolidated topline of Rs 520 crore. GTIL is set to fund the acquisition, allocating up to Rs 20 crore through a proposed rights issue of up to Rs 49 crore.

This strategic move aligns with GTIL’s vision to establish an integrated unit, expand its presence in the fashion apparel sector, enhance market share, margins and asset base, all while prioritizing sustainability. The acquired facility boasts of state-of-the-art infrastructure, including highly automated industrial washing tumblers, dryers and cutting-edge technology, augmenting Globe Textiles’ processing capabilities and sample development.

Furthermore, the acquisition will bolster GTIL’s commitment to environmental responsibility, with plans to achieve certifications such as Zero Liquid Discharge Facility certification from ATIRA (Ahmedabad Textiles Industry Research Association) and ZDHC (Zero Discharge of Hazardous Chemicals) certification. These certifications underscore the company’s dedication to sustainable practices, including the use of approved nature-friendly dyes and chemicals, innovative processing techniques and maximizing energy efficiency and water recycling.

Bhavin Parikh, CEO of Globe Textiles India Limited, emphasized the strategic significance of the acquisition, stating, “Through this acquisition, we reaffirm our dedication to sustainability and innovation in the textile industry. We are confident that this development will not only enhance our topline and margins but also introduce innovative sustainable fashion garments and practices sought after by customers from India, Europe and the US.”

In addition to expanding production capabilities, the acquisition will enable GTIL to offer a diverse range of sustainable fashion products, catering to evolving consumer preferences and driving long-term value creation. With a track record of robust financial performance and a ten-year CAGR of 13% in revenue and net profit, GTIL is poised to capitalize on this strategic acquisition to further solidify its position as an industry leader in environmental responsibility and customer satisfaction.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *