Indo Count completes acquisition of Home Textile business of GHCL for Rs592.8 crore; Stock spurts 4%

4 Apr 2022 , 10:02 AM

Indo Count Industries Limited, a leading manufacturer and exporter of Home Textiles has announced the successful completion of the acquisition of Home Textile business of GHCL Ltd. at Bhilad (Vapi), Gujarat, on a going concern basis by way of a slump sale and acquisition of specified assets of Grace Home Fashions LLC (GHF), US subsidiary of GHCL for an all-cash consideration of Rs592.8 crore (subject to validation of customary closing date adjustment of working capital in terms of BTA and ATA).

At around 10.08 am, Indo Count Industries Limited was trading at Rs176.35 per piece up Rs7.15 or 4.23% on the BSE. The stock hit a day’s high of Rs179 per piece on the BSE.

Anil Kumar Jain, Executive Chairman, said: “We are extremely happy to announce the completion of the acquisition and warmly welcome the new team to the Indo Count family. We are confident that this foray will successfully meet our long-term aspirations and create value for our global customers and all stakeholders.

We are excited about the pace at which we are progressing towards strengthening our brand into an end-to-end bedding solution provider for Global & Domestic markets.

We believe this is a significant step towards our strategic vision of achieving a formidable leadership position in the Home Textile Bedding business ‘globally’. Further, with the increasing growth potential in the Indian Home Textile industry, we believe we are market-ready to capitalize on this opportunity.”

This acquisition will catapult Indo Count to a leadership position in the Global Home Textiles Bedding segment:

• Indo Count becomes the world’s largest Home Textile bedding manufacturer, with an annual capacity of 153 million meters
• The potential addition of ~ Rs.1,300 — 1,500 Crores p.a. to the topline of the Company at peak capacity
• Indo Count adds a whole new avenue of customer base which is untapped, thereby leading to a gain in global market share
• Current customers of GHCL Home Textile business will gain access to ICIL’s full product portfolio consisting of fashion, utility, and institutional bedding
• Increase market share by enhancing capacity utilization, creating synergies, and expanding product range offerings
• The customer-centric approach will enable ICIL to be more flexible and strengthen customer service levels resulting in a strong Global Supplier and Brand in the Home Textile Industry