- Meenakshi Kumar |
Century Textiles and Industries may merge its textile business with Aditya Birla Fashion & Retail (ABFRL). The aim is to bring the entire textile and fashion business of the Aditya Birla Group under one roof. In the past one year, ABFRL has undergone major restructuring under which the fashion business of Aditya Birla Nuovo - comprising Madura Garments - was merged with the company, making it the largest fashion retail player, with consolidated revenues of Rs 12,000 crores. Century earned about Rs 1,817 crores, or 8.6 per cent of total revenues, from its fabrics and denim business and is a supplier to ABFRL.
In the textile business, Century has two revenue streams: cotton fabric and denim units that can be integrated with ABFRL’s businesses. The company has a vertically integrated plant at Bharuch for manufacturing cotton fabrics. The cotton division of Century is one of the oldest players in India and manufactures a wide range of premium textiles and supplies to many international players, including Royale Linen, Ralph Lauren, DKNY, Belk and US Polo.
Century Textiles’ financial metrics have declined, mainly due to its high debt. Interest costs have corroded its profit after tax. Besides, due to falling demand and pressure on selling prices of cement, the financial performance of cement units has also suffered.