Bombay Dyeing sells its processing unit in Ranjangaon

Bombay Dyeing plans to sell its remaining textile manufacturing units, as the company is finding it difficult to sustain competition from the unorganised sector. Couples with this as rise in import from Taiwan, China and Bangladesh is leading to a negative impact on production. As per sources, the company’s textile processing unit at Ranjangaon in Pune is being sold on a ‘slump-sale basis’, or without assigning specific values to individual assets and liabilities, for Rs 230 crores to a firm called Oasis Procon.

In a BSE filing, the company had informed that the Board has granted approval for the sale of its textiles processing unit in Ranjangaon, Maharashtra to Delhi-based Oasis Procon for Rs 230 crores. “The net proceeds from the sale will be utilised to repay the existing loans and reduce interest burden or enhancement of working capital of the company or general business purpose,” Bombay Dyeing said.

The company reported a fall of 13.70 percent in its standalone net profit at Rs 178.85 crores for the quarter ended March 31. Bombay Dyeing's net sales on standalone basis fell 33.78 percent to Rs 745.77 crores against Rs 1,126.25 crores in March quarter of the previous fiscal. For the full fiscal, the company's net profit marginally rose 0.90 percent to Rs 24.56 crores from Rs 24.34 crores in the year-ago period. However, net sales were down 10.74 percent to Rs 2,327.68 in FY15. It was Rs 2,607.86 crores a year ago.