GHCL Limited has completed the divestment of its Home Textile business to lndo Count Industries Limited effective 2nd April 2022, after obtaining all relevant regulatory and shareholders’ approvals.
The total consideration for divestment of the Home Textiles Business has been calculated at INR 608.30 crores (subject to validation of customary closing date adjustment of working capital in terms of the definitive agreements). The divestment of GHCL’s Home Textile Business is a significant value unlocking exercise for all its stakeholders. This move will enable the management to focus on the strategic growth pillars of Chemical and Spinning businesses, the statement said.
The proceeds of the sale will be used to further initiatives such as Greenfield project, product basket expansion, clean energy and ESG initiatives, automation and exploring opportunities to enter into JVs, the statement said.
Speaking on the occasion, RS Jalan, Managing Director, GHCL Ltd., said, “The divestment of the Home Textiles business is a strategic move which we believe will unlock value for all our stakeholders. We have been able to complete the process seamlessly, on time and with all relevant approvals in place. The proceeds from this divestment will further GHCL’s growth strategy based on our vision to “Grow our Business Responsibly, with Governance, Sustainability and Core Values as our Foundation”.
“We wish the best for our HT colleagues as Indo Count are market leaders in this particular product category and will ensure the continuity and further growth of the HT business,” it added.
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