GHCL a $700 million multi product transnational company operating under the domain of home textiles & soda ash is to restructure its business.

Financials modalities being worked out to restructure company’s business into separate verticals of Soda Ash and Home Textiles & the Retail.

As per the proposed plan, the erstwhile GHCL would continue to be listed on the Indian stock exchanges housing the businesses of soda ash. In Home textiles, the Retail entity which would have the business of India & UK retail ventures and Global Sourcing entity would also be listed separately. The plan envisages shifting the business of Rosebys UK to the Retail Company here in India, which kick starts with a turnover of more than Rs.1000 crores.

Speaking on the initiative, Mr. Sanjay Dalmia, Chairman GHCL Said, “This would unlock a substantial value for the shareholders of the company through a focused approach across individual verticals of Soda Ash and Home Textiles & Retail.

The Creation of an independent focused organization in the high growth arena of Home Textiles Retail business would enhance the financial flexibility for the retail business to independently raise resources for future growth. It would also give the opportunity for an optimal valuation of the retail business as an independently and separately listed entity.”

He added further that given the length and breath of its presence in the UK and the brands company services within its retail outfits (from Well known established UK brands to global brands like Disney etc), the Retail entity should command a substantial value based on its top line.

The company at present is in the final stages of launching its retail in Indian market through the Rosebys brand. The company is set to launch its exclusive range of home textiles retail chain stores in the country. This chain would have its presence across the exclusive and multi-brand outlets. The company has plans to roll out 300 stores in its first year of operations.

In the Home Textiles arena, GHCL acquired three companies in the USA and one in UK which is the largest Home Textiles Retail chain with more than 300 stores across UK called -Rosebys. The USA acquisitions included Dan River, HW Baker & BEST MANUFACTURING GROUP primarily catering to B2B segment.

With a wide structure available under its umbrella, GHCL has been able to create efficiencies in Global Sourcing with its presence in 3 continents, and 6 sourcing hubs of the world (India, China, Pakistan, Cambodia, Turkey & Mexico). The company has created a strong Global Design Capabilities with centers in USA, EU and India and has over 40 designers worldwide in its fold along with relationships in Lifestyle licensing in the Kids and Adult segments

The Home Textiles entity is be set to become one of the strongest sourcing Power Houses in the world backed by its global network of vendors along with the sourcing teams of Dan River, BEST and Rosebys in its fold.

Company’s Global sourcing Organization would result in significant cost reduction in terms of manpower as well as logistics. The Home Textiles Business would have a strong vertical focus in – Global Design & Product Development, Global Sourcing, B2C (Retail) and B2B ( Institutional & Hospitality)

GHCL has become the only vertically integrated player in the world in the arena of Home Textiles, from Fiber to Fashion with a set up that houses Retail capabilities backed by a Global Sourcing & Design of this scale. It has also been considering a Re-branding exercise that is scheduled to launch sometime this year.

Sourced From: Mutual Public Relations

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