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Grasim divests stake in textiles unit GBTL to Donear group

LiveMint logoLiveMint 10-07-2017 PTI

Grasim Industries Ltd, a flagship company of the Aditya Birla Group, on Monday said it has entered into a share transfer agreement for the divestment of its 100% holding of Grasim Bhiwani Textiles Ltd (GBTL), a wholly owned subsidiary, to Donear group of Mumbai.

“We are divesting our 100% holding of Grasim Bhiwani Textiles Ltd (GBTL), a wholly owned subsidiary, to Donear group,” a company statement said, without disclosing the deal value.

GBTL has been primarily engaged in the business of manufacturing and marketing of polyester-viscose fabric.

It constitutes a very small proportion of Grasim’s consolidated financials, with a revenue/earnings before interest, taxes, depreciation and amortization (Ebitda) share of less than 1%, the release said.

This divestment, the company said, is the outcome of its periodical business portfolio review exercise.

It is in the direction of consolidation and greater focus on core businesses of the company, it said.

Given the size of Grasim’s total operations, GBTL’s divestment will have a negligible impact on the company’s financials, it added.

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