City-based spun yarns producer Priyadarshini Spinning Mills Limited has decided to sell its garment unit to Marigold Landmark Estates Private Limited for Rs 10.6 crore.
The acquisition of the unit by Marigold is stated to have been backed by one of the leading textile players in Andhra Pradesh, which did not want its identity to be disclosed at present.
According to Priyadarshini's management, a decision to exit from garment manufacturing business has been taken as it was not the company's focus area for the future. The company would now concentrate on spinning and yarn dyeing in textiles.
The company’s spinning mill capacity is currently at 35 tonnes per day (tpd) and the yarn dyeing capacity is at 10 tpd.
Priyadarshini had registered Rs 7.8 crore loss on a turnover of Rs 200 crore in the financial year ended March 31, 2010. This deal is expected to help in making the company profitable. The company plans to clear all outstanding term loans against the garment factory and use the remaining proceeds towards its working capital requirements, Harish Cherukuri stated in a press release.
Cherukuri said that the company had received a positive response to the sale proposition from its shareholders through the ballot vote process. “We have now approached our bankers to give its nod for the same. The entire process is likely to be completed in a month’s time,” he added.
Incorporated in 1981, Priyadarshini's primary activity consists of yarn manufacturing and yarn dyeing. It has a capacity of 82,000 spindles spread over two yarn manufacturing facilities.
