Bombay Rayon Fashions (BRFL) has acquired a controlling stake in Leela Scottish Lace for Rs 155 crore."We have signed an MoU with the Leela group," Prashant Agarwal, managing director, BRFL said.Leela Scottish Lace belongs to the hospitality major the Leela Group, and has 18 manufacturing facilities at Chennai, Bangalore, Kochi and Thiruvanthapuram.Venu Krishnan, an official of the Leela Group, said movable and a few immovable properties would go to BRFL. He, however, declined to comment on how the Rs 155 crore would be utilised by the Leela Group."Leela Scottish is a private limited company, and the management will decide on the deployment of the resources," he said.BRFL will pay 25% of the amount at the time of signing and the balance within the next 45 days, Agarwal said.The business of Leela Scottish Lace will be transferred to a wholly-owned subsidiary of BRFL called Bombay Rayon Apparel.Nearly 16,000 employees of Leela Scottish and the business will be transferred to the new subsidiary, and all customers of Leela Lace will be integrated, Agarwal said, adding the acquisition will bring in many synergies to BRFL's business.The Leela Group company has clients like Wal-Mart, Ann Taylor, Banana Republic and Gap.
