Bangalore, July 26: In a strategic move, Tamil Nadu-based knitwear firm Eastman Exports Global Clothing Private Limited has partnered with Bharat Biotech Group’s Investment Arm, with an approximately 20% stake sale.
Eastman Exports will use the new investment for capital expenditure, strengthening backward integration and customer acquisition among others. The funds will also help the company increase its presence in the global apparel industry, especially at a time when other countries are facing a slowdown and to capture the overall China plus one strategy of divesting manufacturing away from a single country.
Mr. N. Chandran, Chairman of Eastman Exports, said the investment is a strong vote of confidence in their business. “We are thrilled to partner with Bharat Biotech Group. The funds will be used in strengthening our capacities and backward integration besides reaching out to newer markets. We have already set up an office in the US and our UK office is expected to open soon. With India signing a Free Trade Agreement with the UAE, we will look at foraying into West Asia as well,” he said.
The company is also keen on venturing into the Australian, Japanese, UAE and European markets, following the Government of India’s Free Trade Agreements with them.
Mrs. Suchitra Ella, Managing Director of Bharat Biotech said, “We are fully committed to the Make in India strategy across industries. India is one of the few vertically integrated countries in cotton-based apparels, our vision is to grow this industry and support manufacturing from India to the world. Our vision of supporting rural and semi-urban communities, especially women is addressed through this partnership, by supporting employment opportunities to around 10,000 women.”
The share purchase agreement between the two companies has been approved by the Competition Commission of India under the “green channel” route, which considers a transaction to be approved once it has been informed to the competition watchdog and poses no risk of having a significant adverse effect on competition. The deal has now been executed with both teams working in a partnership model to grow the business.
