India’s Sarda Group has agreed to collaborate with Dubai investor Kailash Agarwal on the acquisition of executive control of Indian textile firm BSL. The Group signed a Memorandum of Understanding (MoU) with Agarwal to obtain a minimum 30 percent stake through its subsidiary Kolmak Chemicals, reported PTI.
The MoU stipulates that both parties will share the entire cost that will accumulate in making an open offer to acquire control of management. Agarwal, a businessman with interests in shipping, textiles, real estate and financing, would provide expertise in expanding BSL's business in west Asia.
Some 55 percent of Sarda’s revenues are generated by its jute production. The Group sells the fiber in West Bengal, Orissa, Bihar and Andhra Pradesh. The company is setting up a processing unit at Alwar in Rajasthan to meet the demands of the north Indian market.
Known as the raw material for sacks, jute is a high tensile strength fiber with resistance to heat and fire. It is used in the fabrication of luggage, furnishings, carpets, decoratives and textiles. — (menareport.com)
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