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GHCL shifts Dan River biz to Fabient

April 21, 2008 (India)

GHCL Ltd has announced that GHCL a $700 million multi product transnational Company after restructuring its business here in India is getting on with the restructuring of its USA home textiles business.

The Company is restructuring the business previously operated under Dan River, Best Textile and HW Baker under one Global B2B vehicle to pursue its vision of enhancing B2B operations.

It is creating focused verticals for its US business wherein all its institutional & hospitality businesses (supplies to hotel chains, Restaurants, Laundries, hospitals) would come under one vertical.

"As the Group is looking to enter into US retail business directly, this poses a conflict of interest with the existing retailers as the market category between Dan River and existing clients may remain the same.

In the current sluggish US retail market where retailers themselves are struggling to make margins at the expense of the supplier, such a strategy reduces the attractiveness for Dan River to maintain third party relationships. We are moving away from Dan River business of supplying to Retailers on CIF basis because of the huge costs involved.

Going forward we would be servicing the relationships through Fabient’s, Vapi and global sourcing units via the FOB model, as is being presently done which will require a limited set up of about 15-20 people and a saving of $ 15 to 20 million dollars on an yearly basis", said Mr. Sanjay Dalmia Chairman GHCL.

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