Ginni Filaments Ltd., a prominent player in the textile industry, has undertaken a strategic disinvestment initiative by divesting its spinning, knitting, and processing unit. The decision, approved by the Board of Directors in a meeting on December 1, 2023, aims to fortify the company’s financial standing and position it for future growth.
In a significant move, Ginni Filaments has decided to transfer its entire spinning, knitting, and processing operations, located at Chhata, Distt. Mathura (U.P.), to M/s. RSWM Limited. RSWM Limited, a listed company with a strong presence in the textiles sector, will acquire these units through a slump sale transaction, with the agreed consideration set at Rs. 160 Crores. Ginni Filaments is a key player in the manufacturing of both traditional and technical textiles. The traditional textiles segment includes yarn, fabric, and garments, while the technical textiles segment encompasses non-wovens and consumer products. On the other hand, RSWM Limited stands out as one of the largest and well-established manufacturers of textile products, making it an ideal candidate for the acquisition.
The decision to divest the spinning, knitting, and processing unit aligns with Ginni Filaments’ strategic vision to consolidate its focus and resources. Shishir Jaipuria, the Chairman & Managing Director of Ginni Filaments, emphasized the move’s importance in strengthening the company’s financial position, especially amid challenges in the traditional textile business due to adverse global geopolitical situations.
Saket Jaipuria, Executive Director of Ginni Filaments, shed light on the company’s future direction. He highlighted Ginni’s existing expertise in producing technical textile products for hygiene and medical applications, along with a burgeoning portfolio in cosmetic products. With a strong customer base and substantial growth in these innovative segments, Ginni Filaments aims to strategically pivot its focus towards these emerging opportunities.
The transfer of the spinning, knitting, and processing unit is expected to have a positive impact on Ginni Filaments’ financial health. The decision reflects the company’s forward-looking approach, emphasizing resilience and adaptability in the face of industry challenges. The move also ensures the security and future growth prospects of the employees associated with the divested units.
Saket Jaipuria expressed the company’s gratitude to all stakeholders for their trust and support, underscoring a commitment to shared success in the future. The slump sale process is anticipated to be completed within three months, marking a pivotal moment in Ginni Filaments’ strategic evolution.
As Ginni Filaments charts a new course with a strengthened focus on technical textiles and innovative product lines, the industry will be keenly watching the company’s trajectory and its impact on the broader textile landscape. The strategic disinvestment marks a bold step toward aligning with market dynamics and positioning Ginni Filaments for sustained growth in the evolving textile industry.
