Grasim Industries divests its arm GBTL to Donear group
The Dollar Business Bureau
Grasim Industries Ltd, a company of Aditya Birla Group, will sell its fully-owned arm Grasim Bhiwani Textiles Ltd (GBTL) to Donear Group’s Rajendra Synthetics. However, the amount of the deal has not been disclosed.
“We are divesting our 100% holding of Grasim Bhiwani Textiles Ltd (GBTL), a wholly owned subsidiary, to Donear group,” the company said in a statement.
The move is part of our time-to-time business portfolio review exercise and our strategy to consolidate the focus on our core business, it said.
The company’s board, in a meeting held on Monday, cleared the agreement for transferring 100% stake in GBTL to Donear Group.
“The company has entered into a definitive agreement for divesting the company's total investment in GBTL to Rajendra Synthetics Pvt Ltd, Mumbai (part of Donear Group),” said the statement.
GBTL is mainly into the business of manufacturing and selling of polyester-viscose fabric.
The company has a manufacturing unit situated in Bhiwani, in the state of Haryana and has wide presence across the country through its huge network of agents, dealers and retail outlets.
It is also present in overseas markets and catering to the needs for fabric of global brands.
According to Grasim Industries, the divestment of GTBL will not have any material effect on the company’s profits as it is contributing less than 1% in its revenue.
Donear Group has been engaged in the textile business for the past three decades and GTBL would become a part of its business, it added.