Modern India plans to acquire garment unit

Mumbai-based Rs 40-crore Modern India Ltd, known as the Modern Mills Ltd earlier, plans to foray into the garment sector. To enable its expansion, the company plans the acquisition of a textile manufacturing unit.

It plans to acquire a textile mill in Gujarat, Maharashtra or Tamil Nadu.

At present, the company's textile division focuses on trading activities and outsources fabrics from China to meets its customer requirements.

"Modern Mills, was started as a composite textile mill, manufacturing high-quality yarn for the local and export market. In March 2004, we had to close the manufacturing division, since it was not a commercially viable venture.

However, we now outsource work to meets our customer requirements. With the opening up of quotas early this year, we are now planning to acquire a textile manufacture unit and foray into the garment sector," V K Jatia, chairman and managing director, Modern India told Business Standard.

However, he refused to divulge any information about the acquisition or the size of the deal. Modern India sources around 12 lakh metres of fabrics worth around Rs 30 crore per annum, through its overseas office in China, Modern International (Asia) Ltd.

Apart from catering to the leading brands in the domestic markets, the group also exports its products to countries such as Dubai, Bahrain, Korea, Hong Kong and Vietnam, amongst others.

One of the most reputed and trusted names in the Indian textile business, over the years, Modern India has evolved into a Group with diverse interest in real estate, education and gem and jewellery. The group is planning to achieve a turnover of Rs 100 crore in next two years.