Singapore Govt firm picks stake in Reid & Taylor

Tag : House Textile


Mumbai, June 24 In a major private equity investment in the textilesector, apparel firm S Kumars Nationwide has announced that anaffiliate of GIC Special Investments will invest Rs 900 crore inits subsidiary, Reid $& Taylor, through a fresh issue of sharesand warrants.

GIC SI, the private equity investment arm of Government ofSingapore Investment Corporation, will make the investment throughits affiliate, Indivest Pte Ltd.

Last year, the company had hived off Reid & Taylor into aseparate company in order to have a sharper focus on high-marginluxury textiles.

Last fiscal, Reid & Taylor registered revenues of over Rs 400crore. Listing shelved

At one stage, the company was toying with the idea of listing thenew entity with an initial public offering. But, sources say, thecompany has temporarily shelved the idea because of marketuncertainties.

Post-conversion, GIC will own 25.4 per cent of Reid & Taylor,valuing it at Rs 3,540 crore, with the rest with S Kumars.

The company said the investment will help in substantiallystrengthening Reid & Taylor’s and its businesses andtheir ability to grow in the luxury fabric and apparel and othertextile segments.

The company manufactures the luxury fabric at an integratedfacility near Mysore in Karnataka. In fact, Reid & Taylor-Scotland sources its fabrics from this mill for its internationalmarket.

S Kumars has a range of brands, including Belmonte and CarmichaelHouse, which offers a range of home linen. It operates in allproduct categories – fabrics, apparel and home textiles. Land assets?

Analysts feel that apart from the brands, the PE investor was alsoattracted by the company’s land assets. It has fivemanufacturing facilities with a capacity of producing over 2,00,000meters/day. It has 30,000 outlets across the country.

Last fiscal, the company clocked revenues of Rs 1,748 crore, up byabout 42 per cent from the previous fiscal. Its net profit for theyear was 66 per cent higher at Rs 205 crore.