Malwa Inds buys two firms abroad

Malwa Industries, the Ludhiana-based vertically integrated denim maker, today announced two overseas acquisitions worth around Rs 50 crore.

It has acquired a Jordanian firm, Third Dimension Apparels, and has bought 80 per cent stake in an Italian company, Emmetre Tintolavanderie Industriali.

The Jordanian company will increase Malwa's garment capacity from the present 4.5 million pieces to 10 million pieces per year. Emmetre is involved in dyeing and finishing of garments and has a capacity of 2.5 million garments per year.

"The acquisition of Third Dimension has given us a strategic foothold in a garment manufacturing location with duty-free access to the US and European markets," said Rishi Oswal, CEO.

Malwa Industries, which is part of the Rs 540 crore Malwa Group, will also invest Rs 250 crore to expand capacity over the next two years.

"Our denim fabric capacity will rise from the present 20 million metres to 30 million metres next year and will touch 40 million metres by 2008.