Globe Textiles India Limited (GTIL), a prominent figure in the textile sector known for its wide array of products, including Denim jeans, Shirting fabrics, and cotton printed fabrics, has unveiled plans to acquire Globe Denwash Private Limited. This move, aimed at purchasing shares, signifies GTIL's strategic expansion and commitment to sustainability.
Funding for the acquisition will be sourced through a proposed rights issue, a testament to GTIL's dedication to environmental responsibility and customer satisfaction. The company's focus on utilizing approved nature-friendly dyes and chemicals, coupled with sustainable processing techniques like its Zero Liquid Discharge system, highlights its efforts to minimize environmental impact while enhancing product quality.
Bhavin Parikh, Chief Executive Officer at GTIL, emphasized the significance of the acquisition, stating that it will bolster asset base, margins, and top-line growth, while introducing innovative sustainable fashion garments sought after by customers worldwide. Projections estimate a substantial increase in revenue, reaching 520 crores, and improved margins by 2027-28.
In addition to the acquisition, GTIL recently announced a rights issue of up to Rs 49 crores, demonstrating its proactive approach to financing strategic initiatives. This move follows the approval of an increase in authorized share capital and alteration of the capital clause in the memorandum of association during an Extra-ordinary General Meeting.
With a revenue of Rs 399.4 crores in 2023 and robust financial performance over the years, GTIL is poised for further growth. The acquisition will enhance production capabilities with state-of-the-art facilities and technology, including highly automated industrial washing tumblers and garment processing capacity, contributing significantly to GTIL's operations.
Moreover, the acquisition will pave the way for certifications such as Zero Liquid Discharge Facility by ATIRA and ZDHC, underscoring GTIL's commitment to environmental stewardship. This strategic move not only solidifies GTIL's position in the industry but also sets a precedent for sustainable growth and innovation.
