Spentex plans to acquire East European firm

NEW DELHI: Yarn maker Spentex Industries on Thursday said it was looking at acquiring an East European firm to consolidate operations in the continent as it mulls a separate listing of its overseas business in the European markets.

"We are working on listing our overseas business in the European market and final decison would be taken sometime next year," Spentex Industries Managing Director Mukund Choudhary told reporters on the sidelines of a Dun & Bradstreet event on mergers and acquisitions.

He said the company was looking at acquisitions in the East European market and an overseas listing would happen once the acquisition comes through.

Spentex Industries is not looking to raise money through the listing but wants to consolidate its overseas business through it, Choudhary said without elaborating further.

"Europe is a big market for us. Our business is grown in the continent and hence we want to have a separate listing of our overseas business," he added.

In Europe, Spentex operates out of two manufacturing units in Uzbekistan and one plant in the Czech Republic. The company would soon set up its third a yarn dying plant in Uzbekistan. The firm's overseas operations are controlled by its wholly-owned subsidiary Spentex Netherland BV.

Overseas business contributes as much as 200 million dollar to the company's overall revenues while its revenues from domestic market stood at Rs 900-1,000 crore last fiscal.