Textile firm RSWM picks up 48.17% in Cheslind Textiles for around Rs. 28 crores

Rajasthan Spinning and Weaving Mills (RSWM), an LNJ Bhilwara Group textile company, has acquired a 48.17% equity stake in Bangalore-based Cheslind Textiles from its promoters for Rs. 27.8 crores. Cheslind is a 100% export-oriented unit manufacturing cotton yarn with a turnover of about Rs. 120 crores. Post-acquisition, RSWM would become one of the top yarn manufacturers in terms of the number of spindles. ICICI Securities was the advisor for this transaction.

RSWM is also making an open offer for acquiring another 20% of Cheslind at a price of Rs. 25 per share, at a 16% premium to Cheslind’s closing market price on the bourses. A successful open offer would take the cumulative acquisition cost for 68.17% equity stake in Cheslind Textiles at Rs. 39.3 crores. The acquisition will be financed through internal accruals.

The acquisition brings in a basket of products including super fine count cotton yarns and would also provide RSWM with an established foothold in the international market. The deal would bring an additional 64,500 spindles under RSWM taking its total spindlage to about 360,000 spindles, pegging it amongst the top yarn manufacturers in the country.

Read the article in The Economic Times.
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Textile firm RSWM planning acquisitions in India, Europe

Textile firm RSWM planning acquisitions in India, Europe

LNJ Bhilwara group company Rajasthan Spinning and Weaving Mills Limited (RSWM) is planning to make two acquisitions in the next three months: one in India and the other abroad. RSWM is close to acquiring a specialized yarn maker in Europe for €6 mn and a domestic spinning having capacity of 100,000 spindles for Rs. 200 crores. Senior company officials are believed to be in Europe as part of negotiations to seal the European deal.

RSWM is a leading integrated player in the textiles sector. It is also contemplating entering the retail sector and has plans to double yarn capacity to 400,000 spindles. RSWM is also eyeing the high-end denim market in India and overseas for its new product line in denim. The company will invest Rs. 900 crores over the next three years to establish a power plant, enhance yarn capacities, set up a state-of-the-art 27 mn metres per annum denim operations and other initiatives.

The company fabric production is exported to 60 countries, including the Middle East, Europe and the US. It has registered a turnover of Rs. 770 crores in the last fiscal.

Read the article in DNA Money.