| The assets buyout would mainly include O'zbekyengilsanoat's 50,000 spindles. The two companies have signed a protocol of intent, which gives Spentex the option to either take over the assets of the Uzbekistan company or to jointly set up a textile production facility for cotton spun yarn. |
| "Uzbekistan has abundance of cheap raw materials (cotton) and labour. We can either use the produce or export it," said Amrit Agrawal, director, finance, Spentex. |
| This would be the first international foray for the company, which exports its product to Europe, the US and Africa. |
| O'zbekyengilsanoat has about 120 undertakings under it dealing in textile, garments and apparel, and porcelain. At present, its enterprises process more than 2.5 lakh tonne of cotton fibre and has revenues of over $400 million. |
| Domestically, Spentex is at present investing about Rs 120 crore to increase its cotton yarn capacity by 36,000 spindles at the facility in Baramati in Maharashtra. At present it has a total capacity of 1.59 lakh spindles. This includes 50,000 spindles at the Solapur plant. |
| Earlier this year, Spentex had acquired Indo Rama Textiles and Amit Spinning Industries within a week. In February 18, it had acquired majority stake in Indo Rama through a buyout of up to 50 per cent of the company's fully paid-up equity share capital from existing promoters, in addition to the 14.99 per cent already held by it. |
| Indo Rama has a capacity of 1.22 lakh spindles. A week later, Spentex executed a share purchase agreement to acquire 50.91 lakh equity shares along with management control of Amit Spinning, which has a cotton yarn capacity of 30,672 spindles. |
| After adding the capacities of the two acquisitions with its present 1.59 lakh spindles, Spentex would emerge as the third largest spinning company in the country. |
| The company's scrip was up 4.43 per cent at Rs 66.05 at the close of day on the Bombay Stock Exchange today. |
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