Anil Channa, deputy managing director, SKNL, told FE that the officials from the company visited Europe recently to discuss the legal process related to an acquisition which could be around Rs 500 crore.
The funds for the acquisition will be raised through overseas debt financing and through internal accruals, says Channa, adding that the announcement is likely in the first quarter of the ensuing fiscal. We are evaluating options of either buying out the European company or forming a joint venture with a majority stake, adds Channa. SKNL is targeting revenues of Rs 1,700 crore in the fiscal ending March 2008.
At the same time, Mandana Industries, with annual revenues of Rs 300 crore, is also in talks to acquire a fashion chain in Europe. The companys director, Manish Mandhana says that it is looking at an acquisition in Europe and might dilute a minority stake for the purpose.
However, according to sources, the acquisition of the fashion chain in Europe by the Mandana Group is estimated to be Rs 250 crore.
With this acquisition, we will get a ready market, distribution network and a strong brand equity on board, says Mandana, who refused to reveal the name of the company as the company is in the final stages of negotiations and would make the announcement in the first quarter of next year. Mandana is into designing, yarn dyeing, weaving processing and garmenting with domestic clients like Allen Solly, Flying Machine, Cotton World, Lee Cooper etc.
However, with the acquisition, Mandana is projecting a turnover of Rs 1,000 crore by 2010. We are also exploring our existing brand canvas in the domestic and international retail market, adds Mandana. The group is also contemplating to spruce up its presence in Singapore, Middle East, Italy, France and Spain.