Globe Textiles demonstrated outstanding financial results for Q3, 2023. The company’s profit after tax has increased fourfold from 47.61 lakhs to 163.83 lakhs in the previous quarter.
Globe Textiles India, a renowned leader in the textile industry engaged in manufacturing, supply and trading of a complete range of textile and apparel products including denim jeans, shirting fabrics, and cotton printed fabrics, announced their plans to acquire Globe Denwash, through purchase of shares.
The company plans to fund the acquisition via its proposed rights issue which will further solidify Globe Textile’s position as an industry leader committed to environmental responsibility and fashion-centric customer satisfaction.
Globe Textile focuses on using only approved nature-friendly dyes and chemicals and has pioneered sustainable processing techniques that give better handfeel to apperals while minimise energy consumption and maximise water recycling through its Zero Liquid Discharge system.
Commenting on the development, Bhavin Parikh, Chief Executive Officer at Globe Textiles (India) said, “Through this acquisition, we reaffirm our dedication to sustainability and innovation in the textile industry. This acquisition will enhance our asset base, margins and topline as well as introduce innovative sustainable fashion garments and practices which are sought after by customers from India, Europe and US. We are confident that this development will enhance the estimated top line by Rs 120 crores to about Rs 520 crores while improving margin by 2027-28.â€
Earlier this month, Globe Textile announced to launch its right issue of up to Rs 49 crore. The board of directors announced on January 29, 2024, that it shall issue up to 15,11,41,500 equity shares of Rs 2 face value to eligible shareholders aggregating up to Rs 49 crore. Board of Directors of the company and committee constituted for the right issue shall announce the rights issue price, entitlement ratio, record date for the rights issue in the due course. In the Extra-ordinary General meeting held on December 29, 2023, the company approved the increase in authorised share capital from Rs 48 crore to Rs 61 crore and alteration of the capital clause in the memorandum of association of the company.
Globe Textile has reported a revenue of Rs 399.4 crore in the year ended 2023 and has a production capacity of over 2.5 lakh sq ft where it manufactures, 36 million metres of fabric and 2.5 million bottoms per annum. It has reported robust financial results over the years with a 10-year CAGR of 13 per cent in revenue and 13 per cent net profit.
The acquisition will add state-of-the-art facilities such as highly automated industrial washing tumblers, dryers, and cutting-edge technology while adding its capabilities in processing and sample development. The development will also add a garment processing capacity of up to 20,000 units per day and 6 lakh units per month contributing significantly to Globe Textile’s production capabilities.
The acquisition will make the group’s facility certified as a Zero Liquid Discharge Facility by ATIRA (Ahmedabad Textiles Industry Research Association). The company will soon obtain ZDHC (Zero Discharge of Hazardous Chemicals) certification, demonstrating its commitment to environmental stewardship.