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Ispat Group are likely to exit textile business
 
Ispat Group are likely to exit textile business
Mittal brothers Pramod and Vinod promoters of the Ispat Group,are likely to exit the textiles business.The promoters are likely to hive off their textile business to focus on steel manufacturing,their core activity.The Ispat Group has interests in textiles through GPI Textiles,which has a unit based in Nalagad,Himachal Pradesh.GPI textiles was earlier a part of Gontermann Peipers India that manufactures rollers used in making value added steel.GPI was later sliced off in to a separate subsidiary.According to sources,the textiles business will be sold off to a suitable buyer.
The group has also appointed consultants for this purpose.Ispat Director (finance) Anil Sureka said the group is looking at various option to move towards higher profitability and value creation.According to sources,the Ispat group has decided to focus only on core activities and business related to steel.This implies that the company will continue to have Gontermann and Balasore Alloys in its portfolio while divesting GPI Textiles.GPI is a closely-held company and has a turnover of over Rs 250 crore and an EBIDA of around Rs 20 crore.It is, however, likely that the group,which has been through serious financial crisis,may have been advised by the financial institutions to focus more on its core businesses.
Posted On : 12/28/2005 2:51:08 PM

 
 
 
Ispat Group are likely to exit textile business