BRFL buys LNJ Bhilwara unit for Rs 25.5 crore
Mumbai-based Bombay Rayon Fashions (BRFL) has bought the garment manufacturing unit of textile maker Rajasthan Spinning and Weaving Mills (RSWM), an LNJ Bhilwara group company for Rs 25.50 crore.
By TNN |
NEW DELHI: Mumbai-based Bombay Rayon Fashions (BRFL) has bought the garment manufacturing unit of textile maker Rajasthan Spinning and Weaving Mills (RSWM), an LNJ Bhilwara group company for Rs 25.50 crore.
This also marks the exit of RSWM from garment making and casts doubt over its proposed retail plans.
The garment unit, based in Bangalore, has a capacity to manufacture 6000 trousers daily. The acquisition would add Rs 50 crore to the company’s annual revenue, BRFL managing director Prashant Agarwal told ET.
In an atmosphere, where substantial rupee appreciation has made things difficult for most garment exporters, BRFL is expanding its capacity through organic as well as inorganic route. “If you focus on product development, you can always demand a better price.
We see great potential in garment export business,” says Mr Agarwal. The company wants to close this year with Rs 1000 crore revenue, double of what it achieved last fiscal.
Meanwhile, RSWM officials didn’t comment on the rationale behind the sale of its only garment unit, but sources said the company wanted to focus on yarn business. Till recently, RSWM wanted to re-enter retail, after having burnt its fingers a few years ago with Buddy Davies retail chain.
It was negotiating with Indus Clothing for a likely buyout of the latter’s retail chain. The company, which owns Mayur brand, was also negotiating with at least two European brands to launch them in India.
This also marks the exit of RSWM from garment making and casts doubt over its proposed retail plans.
The garment unit, based in Bangalore, has a capacity to manufacture 6000 trousers daily. The acquisition would add Rs 50 crore to the company’s annual revenue, BRFL managing director Prashant Agarwal told ET.
In an atmosphere, where substantial rupee appreciation has made things difficult for most garment exporters, BRFL is expanding its capacity through organic as well as inorganic route. “If you focus on product development, you can always demand a better price.
We see great potential in garment export business,” says Mr Agarwal. The company wants to close this year with Rs 1000 crore revenue, double of what it achieved last fiscal.
Meanwhile, RSWM officials didn’t comment on the rationale behind the sale of its only garment unit, but sources said the company wanted to focus on yarn business. Till recently, RSWM wanted to re-enter retail, after having burnt its fingers a few years ago with Buddy Davies retail chain.
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It was negotiating with Indus Clothing for a likely buyout of the latter’s retail chain. The company, which owns Mayur brand, was also negotiating with at least two European brands to launch them in India.
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