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Textile firm Spentex consolidates Uzbekistan presence

07 Dec '06

2 min read

In the cross border acquisition in textiles domain, Spentex Industries Limited has acquired the immovable assets of "Farg'ona Ip-Gazlama Ishlab Chiqarish" in Uzbekistan to set up a processing project for dyeing finished fabric (through its Dutch subsidiary) in technical and marketing collaboration with British Millerain,(BM) UK.

The process house at Mergalan factory in Uzbekistan will dye finished fabric for use in work wear, outdoor fabrics, military use, institutional uniforms/wears, industrial fabrics, home furnishing fabrics etc.

The proximity to Eastern European markets, low cost of operations and moving a step forward in the value chain are the reasons for setting up the process house.

It would have a capacity for dyeing 30,000 meter of fabric per day and the flexibility to increase it subsequently. The transaction is shareholder value accretive.

British Millerain (BM), UK is a century old company established in 1880 and is a well recognised brand (Millerain & Performance fabrics) all over Europe and in other countries.

BM, UK has been manufacturing work wear, industrial fabrics, technical fabrics and performance fabrics in the past and is registered as a trusted supplier.

This project shall be entitled to all tax benefits/concessions from the government of Uzbekistan besides other advantages namely availability of raw material, low cost labour and power as per present policies.

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