Wadia group’s textile firm Bombay Dyeing & Manufacturing Company Ltd (BDMC) has got its board’s approval to sell textiles processing unit at Ranjangaon in Maharashtra, to Oasis Procon Pvt Ltd for Rs 230 crore ($36.2 million), according to a stock market disclosure.
According to the terms of the divestment, the company has agreed not to engage in the business of export of bed linen or bed linen fabric to the US for five years from the closing date. This will not have any impact on the company’s existing retail business Home & You.
The firm will use the money to repay existing loans, enhance working capital and for other general business purposes.
Delhi-based Oasis Procon, a textile manufacturer, was founded in 2004. Details of its promoters could not be gathered immediately.
Bombay Dyeing offers linens, towels, home furnishings, leisure clothing, kids wear, etc. Earlier, the flagship firm of Wadias, the group’s interest is now diversified into several businesses, including airlines, food, chemicals, petrochemicals, plantations, light engineering and real estate.