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GHCL to acquire US home textile major Dan River Inc

26 Dec '05

3 min read

GHCL in India is already in the process of expanding its capacity in spinning from 85000 spindles to 140000 spindles over the next 24 months. The company is in the process of completing the state-of-art home textile manufacturing facility at Vapi at a cost of Rs.230 crores, the production for which will commission by March 2006.

Vapi unit at 90 percent capacity is likely to generate $100 million in revenues. Post this expansion, GHCL would become first company in India to have integrated production facilities from spinning, weaving, finishing to making up and would rank amongst top 3 players in India in the fast growing home textiles segment.

“Dan River will be able to integrate its well built marketing capability in the US Home Textile space with high quality and competitive manufacturing competence of GHCL's Textile facility at Vapi, besides integrating our Global outsourcing strategy of sourcing from India, Pakistan & China."

"A substantial value creation for the Dan River Business to become the most competitive Home Textile Player in the US, further adding substantial value for the shareholders,” said, Greg R Boozer, Chief of Operations/Outsourcing in Dan River.

GHCL is a part of the eminent and reputed Dalmia Group. The company is also moving up the textile value chain into the value added segment of home textiles for the export markets for which it is currently implementing its Home Textiles project at Vapi in Gujarat with an investment of Rs. 230 Crores, which is likely to commence commercial production by March 2006.

Dan River is a leader in the manufacturing and marketing of textile products for the home fashions and apparel fabrics markets.

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