| The transaction provides Spentex with a strong European presence in the high end yarn segments including special sewing thread yarns, carpet warp yarns and core yarns for weaving mills. With this acquisition, Spentex will gain access to a large customer base in over 30 countries and further add an annual volume of about 19,000 tons. |
| Mr. Mukund Choudhary, Managing Director, Spentex Industries, said "This acquisition is in line with our inorganic growth strategy of acquiring good, operational assets of strategic value. Schoeller is a leading yarn manufacturer in Europe with operations in Germany, the Benelux countries, France and the Czech Republic with customer base spread across European Union. This acquisition not only enhances our presence in the high margin European markets but also increases our client base substantially." |
| The company's customer base includes well-known companies in the sewing thread industry, carpet manufacturers, weaving mills and knitwear factories. |
| Yes Bank was the sole financial advisor to Spentex on this transaction. |
| ANNUAL RESULTS |
| Spentex Industries recorded net revenues of Rs 897.5 crore for FY07, an increase of 155% as compared to Rs 352.25 crore in FY06. The net profit was at Rs 12.58 crore, an increase of 25% from Rs 10.06 crore in FY06. EBIDTA for FY 07 stood at Rs 113.57 crore as against Rs 29 crore for FY06 registering an increase of 292%. |
| Reflecting on the performance, Mr Choudhury said, "Our two acquisitions during the last fiscal have started contributing significantly to our topline and bottom-line which is reflected in overall growth. We were also able to garner significant share in the market with higher volumes and realizations." |
| ABOUT SCHOELLER LITVINOV K.S. (SCHOELLER) |
| Headquartered in Niederzier near Duren in West Germany, Schoeller Textil is a leading manufacturer of yarns and threads. With manufacturing location in Litvinov, Czech Republic; Schoeller Textil combines the reputation of Western European quality supplier (Sales organization being in Germany) with internationally competitive manufacturing location (state of the art plant at Czech Republic). Schoeller Textil achieved a turnover of € 54.5 Mn for the year ended Dec 2006 with an EBITDA of € 5.8 Mn. The company has the largest capacity in the range of yarns it offers to the customers. The company is also European market leader in the yarn industry in segments like special sewing thread yarns, carpet warp yarns, core yarns for weaving mills etc. |
| ABOUT SPENTEX INDUSTRIES |
| Spentex Industries Limited (BSE SCRIP ID: SPENTEX; NSE SYMBOL: SPENTEX) has recently won Super Gold Award "� 1st Runner up in category of Emerging Facilities by Frost & Sullivan for The India Manufacturing Excellence Awards 2006. The Government of Uzbekistan has also awarded Spentex Tashkent Toyetpa for export, for development of Light industry of Uzbekistan. For more information on Spentex Industries, visit https://bsmedia.business-standard.comwww.spentexindustries.com. |
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