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Indo Rama sold out to Delhi firm

INDO RAMA, one of the largest cotton yarn manufacturers in the State, will soon be history in the industrial map of Madhya Pradesh as the entire plant and machinery at Pithampur Industrial Area near here has been sold out to Delhi-based CLC Group.

india Updated: Mar 19, 2006 13:22 IST

INDO RAMA, one of the largest cotton yarn manufacturers in the State, will soon be history in the industrial map of Madhya Pradesh as the entire plant and machinery at Pithampur Industrial Area near here has been sold out to Delhi-based CLC Group.

Indo Rama Vice-president Mukesh Saxena, who was in Kanpur when contacted, refused to confirm the rather unusual sellout of the 18-year old company. Sources said the company had been sold out to the Delhi-based CLC Group, owned by the Steel major Jindal’s son-in-law, which is already engaged in the cotton yarn business in other parts of the country. “The deal has been struck for around Rs 350 crores,” sources said.

Indo Rama General Manager (HR) PK Ojha confirmed the sellout of the company, which had made a niche for itself in the textile map of the country.

The deal has been struck and it is a matter of some days when the whole unit will be taken over by the new owners, he said. “Except for a small portion of land where there is a temple built by the company, the entire unit has been sold out,” Ojha said.

Besides, the cotton yarn unit of the company in Nagpur has also been sold out. “The intention behind the sellout is that Indo Rama, owned by OP Lohia and RP Lohia, wanted to concentrate on polyester business. In fact, they aim to become the polyester king in the country,” Ojha said.

Indo Rama started production in its two units, 100 per cent export oriented, in 1989 with a production capacity of around 60,000 spintals. After two or three years, it expanded the business.

After two or three years, it expanded the business. However, instead of expanding in Pithampur, the company established its units at Nagpur in Maharashtra, with double the capacity than Pithampur.

According to sources, Indo Rama in fact wanted to expand its units in Pithampur itself. But, they decided to move to Nagpur for expansion due to the apathetic attitude of the then State Government led by Sunderlal Patwa towards the demands of the company.


The intention behind the sale is that Indo Rama, owned by OP Lohia and RP Lohia, wanted to concentrate on polyester business. In fact, they aim to become the polyester king in the country

First Published: Mar 19, 2006 13:22 IST