Raymond increases its stake in Raymond Zambaiti

Mumbai-based textile and apparel major Raymond has

invested Rs five crore in Raymond Zambaiti (RZL). This will hike its stake to 52.87 percent, as per a stock market disclosure. Post acquisition, RZL has become a subsidiary of Raymond.

RZL was an equal equity joint venture between Raymond and Italy’s Cotonificio Honegger (part of Gruppo Zambaiti). Last December, Raymond had terminated the joint venture agreement and had exercised its option to purchase all the shares held by the foreign partner in the firm.

RZL produces exclusive cotton shirting fabrics and bottom weight fabrics. Its products are supplied to shirt brands. Its manufacturing facility based in Kolhapur has an installed capacity of 21.6 million meters annually. The gross revenue of the company for the year ended March 31, 2013 stood at Rs 296.91 crores against Rs 228.98 crores the previous year. It registered profit after tax of Rs 3.5 crore last year, almost the same as the previous fiscal. Its margins were affected mainly by provisioning of Rs 11 crore towards dues receivable from Cotonificio Honegger.