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Raymond
looking for acquisitions in textiles, files: Singhania
PTI
- New Delhi
Raymond
India said it is open to acquisitions in both textiles and engineering
files businesses with reserves of over Rs 900 crore and is scouting
for opportunities within as well as outside the country.
In
its third business of denim, the company has decided to invest Rs
35 crore more this year in expanding manufacturing capacity by five
million metres to 20 million metres, a senior company official said
here.
“We
are open to acquisitions. We have over Rs 900 crore reserves and
we are looking at acquisitions in both textiles and engineering
files businesses. These could be in India or abroad,” managing
director, Mr Gautam Singhania told PTI here.
The
company, which has already divested its cement and steel business,
has identified textiles, denim and engineering files as its core
businesses for now, he said.
 Asked
if Raymond had identified any potential targets, he said the company
was already number one in files across the world but was still keen
to expand manufacturing capacity. In textiles, he said the acquisitions
could possibly be in unbranded garments, but declined to comment
further.
The
company reported over 32 per cent fall in net sales in 2001-02 at
Rs 884.58 crore while net profit was Rs 48.19 crore against a net
loss of Rs 8.13 crore for the previous fiscal.
Mr
Singhania said the company “is completely free of debt at present
and with reserves of over Rs 900 crore, we have not cash crunch.
We’re only waiting for the right opportunity to invest”.
In
the textiles business, he said, another 20-25 new Raymond outlets
will be added this year to the 272 existing ones spanning the country.
Also, another 10 ready-to-wear designer lines stores called ‘Be:’
will be added to the existing five by the end of this fiscal.
“We
see immense potential in the development and growth of this (Be:)
line, which will become one of our powerful brands,” Mr Singhania
said.
While
this ready-to-wear line is “losing money” at present,
he said he was confident that the business will break even in the
near future.
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