Tirupur-based group takes over European company
Tirupur-based Mehala Group has taken over Sanmarco, a well known group of companies from Europe, manufacturing textile machinery, situated in Sulur, on the city outskirts, a senior company executive has said.
Refusing to disclose the investment to clinch the takeover, C Subramaniam, Chairman of Mehala Group, told reporters in Coimbatore on Friday night that Sanmarco has been in the production of spindle for worsted (woollen) fiber and other related accessories and suppliying to the Europe-based Industries.
However, due to under utilisation of the substantial infrastructure and capacity, the company, which had a turnover of Rs 1.5 crore per month, was incurring net losses, despite cash profit, Subramaniam said.
Claiming that Sanmarco, knwon as as Finalane SPA Italy, had identified the Rs 250 crore Mehala group and invited for negotiations, he said that the company was formally taken over on July four last, by acquiring 99.117 per cent being the entire equity interests of Finlane.
To start with, the company would produce five ring frames per month, used in woolen industry, which have tremendous demand in Ludhiana and from leading brands like Raymonds and Oswal, Subramaniam said on his expansion plans.
The unit, situated in 22-acre land, was expected to achiev a turnover of Rs 50 crore in the first year, Subramaniam claimed.