Salek Textile Ltd is through with the, functionalities of acquiring Titas Spinning and Denim Company Ltd, an export-oriented denim unit. The cost of acquisition came to Rs. 1200 million, company officials divulged.
Matin Chowdhury, Managing Director of Salek Textile, a spinning mill based in Gazipur stated that, pursuant to their expansion plan, they acquired the Germany-Bangladesh joint-stake denim mill, in August.
The denim mill for some years now has been running in losses, as a result of, fall in production capacity on account of scarce gas and power supply, which caused the mill to lose its competitive edge, he said.
Saltex MD divulged that, originally they were planning to come up with a new industrial unit, but as the nationalized gas sourcing units have ceased providing fresh gas connections to industries, till easing of the gas crisis in the country.
Eventually, when they learned that Titas Denim was up for sale, and that the unit already has a gas connection in place, they acquired it, he added.
The denim mill has a capacity to produce 7.5 million metres of denim per year was set up in 2006 in Gazipur, the official stated and added that, they mean to further elevate the production capacity of the unit, post acquisition.
Fibre2fashion News Desk - India
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