New Delhi, February 14
Globe Textiles India Limited (GTIL), a frontrunner in the textile industry engaged in manufacturing, supply, and trading of a wide array of textile and apparel products, including Denim jeans, Shirting fabrics, and cotton printed fabrics, has announced its ambitious plans to acquire Globe Denwash Private Limited through the purchase of shares.
According to a press release, this move marks a significant step in GTIL's forward integration strategy aimed at enhancing its market position, expanding its product portfolio, and embracing sustainable practices.
The acquisition of Globe Denwash Private Limited is part of GTIL's forward integration strategy, aimed at establishing an integrated unit to propel upward movement in fashion apparel, increase market share, margins, and the asset base, while also focusing on sustainability.
With a projected revenue increase of over 30 per cent in the coming three years, GTIL is poised to solidify its position as an industry leader committed to environmental responsibility and innovation.
Globe Textiles has long been at the forefront of environmental stewardship and innovation in the textile industry.
The company focuses on using approved nature-friendly dyes and chemicals, pioneering sustainable processing techniques that minimize energy consumption and maximize water recycling through its Zero Liquid Discharge system.
The acquisition of Globe Denwash Private Limited will further enhance GTIL's capabilities in sustainable fashion garments and practices, catering to the growing demand from customers in India, Europe, and the US.
Commenting on the acquisition, Bhavin Parikh, Chief Executive Officer at Globe Textiles (India) Limited, emphasized the company's dedication to sustainability and innovation.
He stated, "Through this acquisition, we reaffirm our dedication to sustainability and innovation in the textile industry. This acquisition will enhance our asset base, margins and topline as well as introduce innovative sustainable fashion garments and practices which are sought after by customers from India, Europe and US. We are confident that this development will enhance the estimated top line by 120 crores to about 520 crores while improving margin by 2027-28."
Earlier this month, Globe Textiles announced its plans to launch a Rights Issue of up to Rs 49 crore to fund the acquisition.
The board of directors approved the issuance of up to 15,11,41,500 equity shares of Rs 2 face value to eligible shareholders, aggregating up to Rs 49 crore.
The company's robust financial performance over the years and its strategic focus on growth and sustainability position it well for future success.
The acquisition will add state-of-the-art facilities to GTIL's infrastructure, including highly automated industrial washing tumblers, dryers, and cutting-edge technology for processing and sample development.
Additionally, the company's garment processing capacity is expected to increase significantly, contributing to its overall production capabilities.
The group's facility will be certified as a Zero Liquid Discharge Facility by ATIRA (Ahmedabad Textiles Industry Research Association), further reinforcing its commitment to environmental stewardship.
Since its inception in 1995, Globe Textiles (India) Ltd. has been a trailblazer in the textile industry, mastering the sourcing, manufacturing, and supply of a comprehensive range of textile and apparel products and services.