Richa Industries eyes stake sale to PEs

Delhi-based mid-sized textile manufacturer Richa Industries with sales of Rs 300 crores is

said to be contemplating selling a stake in its business to private equity players. If the deal gets finalized, the buyer will get access to one of the largest single manufacturing facility in Haryana having capacity of producing 72,000 metric tons per annum and spread across 13 acres with three lakh sq. ft. of covered area.

Baring and Capital International are said to be among the PEs eyeing to grab the stake. However, sources claim that the Kolkata-based textile group is ahead in the race. Sudip Bandyopadhyay-led Destimoney Securities is looking after the sale proceedings. The company caters to some of the leading global and domestic brands like H&M, M&S, IZod, Kenneth Cole, CK Mens, Chicos, Classic Polo, operates in knitting, processing, dyeing and special finishing of fabrics manufacturing processes.

Richa has changed its industry category on the BSE from textiles sector to construction & engineering sector. It recently ventured into pre-engineered buildings (PEB), which is a high margin business and has better prospects in line with growth opportunities due to potential in infrastructure and logistics sector. Some of its clients include Thermax, Wipro, Indiabulls, L&T, Lafarge and DMRC.