Raymond in talks to buy Delphi overseas units

Mumbai, Feb 1 | Updated: Feb 2 2006, 05:30am hrs
Textile major Raymonds Ltd is in talks with US based Delphi to acquire some of its bankrupt units in US, to strengthen its components division.

Recently, Raymonds acquired a tooling company, Ring Plus Aqua. The acquisition, if successful, will be Raymond first overseas buyout in the components segment.

Delphi, the beleagured auto components company, filed for Chapter 11 bankruptcy in October 2005. The US based company also said that some of its sick units were up for sale.

Admitting that the company is in talks with Delphi for acquisition, Raymond group president, Pradeep Bhandari told FE, We are in talks with Delphi, but cannot comment anything on it now. We will let you know at the right time.

Says Raymond chairman and managing director, Gautam Hari Singhania, Our acquisition of Ring Plus Aqua has done well, since in the last nine months, we have more than doubled the profit before tax.

The division has come out of the red in the third quarter, posting a Rs 2.98 crore net profit as against a net loss of Rs 2.02 crore in the corresponding quarter last year.

Raymond is also planning to expand its product range apart from files and tools, though Mr Bhandari refused to divulge the investment figures.

...may launch denim brand
Piyush Pandey
Mumbai, Feb 1

Textile major Raymond Ltd is likely to have its own denim brand soon. The company has already started examining the possibilities of launching its own denim brand.