Globe Textiles acquires Globe Denwash, eyes sustainable growth

In a strategic move set to fortify its position as a frontrunner in the textile domain, Globe Textiles India (GTIL) has unveiled plans to acquire Globe Denwash, a significant player in the sector.  This acquisition, facilitated through the purchase of shares, marks a pivotal development in GTIL's trajectory, amplifying its prowess in manufacturing, supply, and trading of a diverse range of textile and apparel products, including denim jeans, shirting fabrics, and cotton printed fabrics.

Known for its eco-conscious practices, GTIL exclusively employs nature-friendly dyes and chemicals and has pioneered sustainable processing techniques, including a Zero Liquid Discharge system.

CEO Bhavin Parikh reiterated GTIL's commitment to sustainability, expressing confidence that the acquisition will not only enhance the company's asset base and margins but also introduce innovative sustainable fashion garments and practices sought after by customers in India, Europe, and the US.

The acquisition is projected to boost GTIL's revenue by an estimated Rs 120 crores, reaching around Rs 520 crores by 2027-28. Earlier this month, GTIL announced a rights issue of up to Rs 49 crore, with plans to issue equity shares to eligible shareholders. This move follows the approval in December 2023 to increase the authorized share capital and alter the capital clause in the company's memorandum of association.

GTIL's robust financial performance, boasting a 10 year CAGR of 13 per cent in both revenue and net profit, positions it favorably for expansion. The acquisition will augment GTIL's production capabilities with state-of-the-art facilities and garment processing capacity, while also aiming to achieve certifications from esteemed industry bodies such as ATIRA and ZDHC, further cementing its commitment to environmental stewardship.