Morarjee Textiles, which is refocusing on yarn-dyed shirting and top wear for ladies, is looking for buy-outs of international brands.
The company is expected to close the first of its acquisitions within two months.
"We are talking to various international brand companies in Europe and North America, including Mens Club of Italy. The first of our acquisitions should materialise within another two to three months," said Harsh Piramal, executive vice chairman, Morarjee Textiles. The acquisitions could amount to anywhere between Rs 15 crore (Rs 150 million) to Rs 65 crore (Rs 650 million), he added.
The company already has a considerable interest in Italy, where its marketing and design subsidiary takes care of European operations.
It has an upmarket design studio. MTL's seasonal collections are made in Italy by Italian designers.
"We are vertically integrated and an international brand would add value to this. The company is looking at European and American brands that also sell in Japan. These regions are already our major markets," said Piramal.
Almost three-fourth of the company's garments and about 60 per cent of its fabric are exported. "The inorganic growth is part of the MTL's strategy to gain scale quickly," added Piramal.
MTL had late last year, bought a 49 per cent stake in Just Textiles for Rs 8 crore (Rs 80 million). The company has processing facilities of 100,000 metre per day.
As part of its expansion plans, the company is investing Rs 10 crore (Rs 100 million) to increase its garment making facility from 450,000 pieces per annum to 12 lakh (1.2 million) pieces within a year. It is investing another Rs 10 crore to expand its printing facility from 8 million metres per annum to 14 million metres per annum.
Overall, MTL is investing almost Rs 40 crore (Rs 400 million) in FY07 to expand its capacities. This is part of the Rs 100 crore (Rs 1 billion) expansion plan that the company announced last year.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Discussion Group
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