Mumbai, Sept. 17: Raymond Ltd today said it is exploring acquisition proposals in the textiles and branded menswear segments, while not ruling out the possibility of a takeover of the ColorPlus brand.
In a communication issued to the stock exchanges today, the company said that while it is a conglomerate engaged in the manufacture of textile garments, denim fabric and engineers files, it has been looking at expanding all activities through acquisition, for growth in its three core segments. “The company is evaluating proposals in this regard, which are at an exploratory stage,” it pointed out.
Raymond has been contemplating taking over the ColorPlus brand for over a year now. While a final deal could not be reached due to differences in valuation, industry circles said negotiations between the two companies have recently reached advanced stages.
Sources added that with conditions in the readymade garment industry getting tough, existing players will have to look at inorganic opportunities to propel growth. In fact, during the first quarter of this fiscal, companies like Madura Garments have experienced lower volume growth.
ColorPlus is a leading readymade garment brand of the Chennai-based ColorPlus Fashions Pvt Ltd. The brand, according to reports, has an estimated 25 per cent market share in the premium smart casual segment. It came into being in 1994 as the domestic brand of Ambattur Clothing Limited (ACL), one of the leading garment manufacturers and exporters, with a turnover of $ 50 million.
ACL carved a decent presence in the overseas markets by exporting to well-known labels like Banana Republic, Eddie Bauer, Gap, Abercrombie & Fitch among others. In India, ColorPlus has more than 150 outlets, which also include franchisee operations.