Aditya Birla Group firm Grasim Industries Limited on Wednesday said it agreed to buy fabrics manufacturer Soktas India Private Ltd for an enterprise value of Rs 165 crores.
The equity valuation of the acquired company was not disclosed, nor did Grasim reveal how much it would pay as part of the transaction.
The Kolhapur-based company, currently owned by Turkey-based SOKTAS Tekstil Sanayi ve Ticaret, manufactures and sells fabrics worldwide, and will become a wholly owned subsidiary of Grasim upon completion of transaction.
“The acquisition is in line with Grasim’s Linen business strategy to strengthen its presence in the country’s fabrics market,” said Aditya Birla Group firm in a statement
Grasim currently gets its revenue from a variety of synthetic products, including viscose fiber and rayon, but also has a presence in natural textiles.
The company said the deal will help it strengthen its position in the cotton and linen markets of India.
Soktas India, headquartered in Kolhapur, Maharashtra manufactures and distributes cotton fabrics in India under various brands – SOKTAS, Giza House and Excellence by Soktas. Soktas said the acquisition will help the company grow and expand in the sub-continent and beyond.
Grasim, one of India’s top linen manufacturers, already has a significant presence in the country’s fabric market through its ‘Linen Club’ brand, which is expected to benefit from the acquisition.