Donear Group has acquired Grasim Bhiwani Textile Limited (GBTL) with the strategic intention to strengthen its manufacturing base and go for cotton ranges in suiting and shirting.
In a strategic move that will significantly enhance its profile and addressable market in the global textiles space, the Donear Group has announced acquisition of Grasim Bhiwani Textile Limited (GBTL), the poly-viscose suiting fabrics subsidiary of Grasim Industries. The acquisition of GBTL gives Mumbai-based Donear Group a strategic edge in global textiles business in terms of world-class production capabilities to market products and access to the marquee customers globally.
GBTL is the country’s largest manufacturer of PV and PW suiting, selling its products under the “Grasim” and “Graviera” brands in India and over 25 countries outside India. The biggest strengths of GBTL are its quality-conscious trade partners and global customers, who have been associated with them for a long time. GBTL caters to international fashion houses in the US and the UK, supplying fabric to them for making garments. These garments are available in some of the largest retail chain stores. The Donear Group aims to build further on GBTL’s existing strengths.
“We have been doing extremely well in viscose blends. With this take-over of GBTL, we will create innovative cotton products since we will have additional capacities through the integrated production facilities. This will be a new area for the Donear Group and it is a win-win situation for both the companies, complementing each other’s strength,” said Rajendra Agarwal, Managing Director of the Donear Group, while speaking to the Editor of the Indian Textile Journal, following a press conference held in Mumbai very recently.
Talking about the acquisition, Rahul Rajendra Agarwal, Director, Donear Group, said, “The GBTL acquisition is driven by our desire to expand our business both PAN India as well as in global markets, and progress towards our strategic goal to become the recognised leader in products and services we offer and increase our market share. This GBTL acquisition will utilise strengths of both partners in terms of infrastructure, manpower and product portfolio. Apart from the world-class production capabilities, the acquisition also gives Donear an access to strong nation-wide retail network, wholesalers and multi-brand outlets through which we will expand our reach.”
“The Donear Group has a manufacturing capacity of 45 lakh metres per month, and GBTL has a capacity of 18 lakh meters per month. The additional capacities be used to explore and expand the product ranges in suiting and shirting by both the entities. They will be complementing each other with the synergies,” said Rahul Agarwal.
S Krishnamoorthy, Managing Director of GBTL, appointed by Donear Group, said, “Existing market conditions offer abundant opportunities for companies with robust infrastructure and in-house manufacturing capacities, different types of product categories, good customer base, speed to market and absolute focus on textiles as their core business. In India, huge opportunity exists for fabric in Over-the-Counter (OTC), Readymade Garments (RMG) and exports segments. Taking on the vision of Make in India, both Donear and GBTL will maintain their individual identities and will stay committed to offer best products and services to their valued customers as one team.”
“Cotton is the strength of GBTL and this will be added to the strengths of the Donear Group, which together will be launching new ranges of cotton suitings. Mostly, it will be a premium range, which will be produced under the combined infrastructure of both the companies,” said Krishnamoorthy. As a brand, Donear has succeeded by maintaining pace with the changing demands of the local and global fashion trends, and primarily due to the company’s; innovative approach in continuously developing newer products, using state-of-the-art-technology along with highly-skilled workforce, strong logistics, by being perpetually quality conscious, and thereby ?creating world-class fabrics. These highly ingenious fabrics are available in a wide range of colour, texture and comfort along with contemporary designs. Donear fabrics are simply a luxury affordable that suits every desire, say the company.
The textile-focused Donear Group has been scouting for a larger addressable market with additional product categories. The terms of the transaction are not announced yet, and will be disclosed at the appropriate forums through wider communication to all stakeholders. The acquisition has been funded by the promoters of Donear, and there is no plan to bring in any strategic investor - Indian or foreign - on board as of now. However, there are plans to bring in strategic stakeholders in due course of time.
Donear Industries is well-recognised in India and outside as one of the best-quality product makers and innovators, who have been in business for over 30 years. The promoters treat textiles as the Group’s core business and have been putting best efforts to grow year on year. It has production capacity of around 45 lakh metres per month with latest technologies and machinery at Surat. Apart from being a leader in India, Donear also has a strong presence in more than 20 countries globally. With a comprehensive product basket, the company is able to supply fabrics to India’s largest brands including Louis Phillipe, Van Heusen, Peter England, Blackberry, Arvind, Wills Lifestyle, Future Group and more. In retail, the Donear Group has a strong network of 185+ stores, marketing textiles under the D’Cot & Donear NXG brands with positive cashflow.