Indian Rayon buys global rights from Coats Viyella

By Our Staff Correspondent

MUMBAI, DEC. 21. In a move to further enhance shareholders' value, Indian Rayon, an Aditya Birla group company, today announced the acquisition of global rights for Louis Philippe, Allen Solly (barring North America), and Peter England (with the exception of the U.K. and Ireland) from Coats Viyella of the U.K. These world rights have been acquired by the Aditya Vikram Global Trading House which is the wholly owned overseas subsidiary of Indian Rayon, at a cost of $2.26 million. The deal was inked at the Coats Viyella office in the U.K.

Mr. Prakash Nedungadi, president, Madura Garments, said, ``Madura Garments is now well positioned to capitalise on the significant growth opportunities that open up worldwide for these excellently established menswear brands. Importantly, it will catapult Indian Rayon's potential overnight to be a global player in the menswear brands.''

Exactly a year ago, Indian Rayon had forayed into this sector with the acquisition of Madura Garments. As a first step to consolidate its position, the company had acquired brands for India and South Asia, along with the licence for exports to West Asia. This second step enlarges its markets with the new territories added including Europe, the Far East, the Africas, West Asia and conversion of the existing limited rights in West Asia to complete ownership. In turn, it will help Madura Garments grow more in revenues and earnings in future.

UNI reports:

Madura Garments constitutes more than 24 per cent of Indian Rayon's business. Indian Rayon's turnover for the first half was Rs. 683 crores, of which Madura Garments contributed Rs. 164 crores.

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