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Sutlej Textiles approves purchase of Birla Textile Mills
16
Mar '15
The Board of Directors of Sutlej Textiles and Industries, the flagship company of KK Birla Group, has approved the purchase of Birla Textile Mills, a division of Chambal Fertilisers and Chemicals.
 
“The Board has approved the purchase of Birla Textile Mills located in Baddi, Himachal Pradesh, as a going concern from Chambal Fertilisers and Chemicals, on a slump sale basis,” Sutlej Textiles said in a filing to the Bombay Stock Exchange.
 
Section 2(42C) of Finance Act, 1999, defines ‘slump sale’ as the transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in such sales. Slump sale includes not only transfer of asset, but also transfer of liabilities or obligations.
 
However, the transaction is subject to requisite approvals, Sutlej Textiles said.
 
“The parties are currently negotiating and finalising the terms of the Business Purchase and Transfer Agreement and other related transaction documents, and shall sign these documents as soon as there is consensus,” the company added.
 
Birla Textile Mills produces around 9,600 metric tons of yarn annually, including synthetic, cotton blended and acrylic yarns, 40 per cent of which are exported to global markets, according to the company’s website.
 
Sutlej Textiles operates three units—Rajasthan Textile Mills, Chenab Textile Mills, and Damanganga Home Textiles located in Rajasthan, Jammu and Kashmir, and Gujarat respectively, and has a textile value-chain from yarns to home textiles. (RKS)
 

Fibre2fashion News Desk - India

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