In the largest ever cross border acquisition in textiles domain, Spentex Industries Ltd (SIL) has acquired the business of Tashkent-To'yetpa Tekstil Limited (TTTL), a state-owned spinning company in Uzbekistan.
Spentex Industries Ltd acquired Tashkent-To'yetpa Tekstil Limited under the privatisation programme of Government of Uzbekistan at a consideration of USD 81 million.
The Government of Uzbekistan has given Spentex a number of incentives including 15 percent discount on raw cotton, exemption on corporate taxes, customs duty and VAT.
TTTL with a combined capacity of 220,000 spindles and 236 air jet looms catapults Spentex as the India's largest spinning enterprise with an installed capacity of over 570,000 spindles. Spentex Industries formed a subsidiary Spentex Tashkent Toytepa LLC in Uzbekistan. The key highlights of the transaction are:
The transaction comprises acquisition of two manufacturing facilities located in the cities of Tashkent and To'yetpa. These two state-of-the-art plants are the largest yarn manufacturing facilities in Central Asia with an installed capacity of 220,000 spindles and a weaving capacity of 236 air jet looms.
The acquisition consideration of USD 81million would be payable over a period of 4 years.
The transaction is the first direct investment by an Indian company into the Republic of Uzbekistan.
Largest foreign direct investment in the textiles industry in Uzbekistan in recent times.