The Board of Directors of GHCL, a $700 million multi product transnational company operating under the domain of home textiles & soda ash has given in principle approval to restructure company’s business.
As per the approved plan, the erstwhile GHCL would continue to be listed on the Indian stock exchanges housing the business of soda ash. The Home Textile business of sourcing and manufacturing is proposed to be shifted to 100% subsidiary of GHCL Ltd.
The Retail entity would have the business of India & UK retail ventures. The plan envisages shifting the business of Rosebys UK to the 100% Retail subsidiary in India.
The company at its Extra Ordinary General Meeting (EGM) held last week has approved the Employees Stock Options Scheme in supercession to earlier scheme approved in 2006. The EGM also approved the grant of Stock Options to employees of subsidiary Companies.
Speaking on the initiative, Mr. Sanjay Dalmia, Chairman GHCL Said, “This restructuring initiative would lead to creation of independently focused organizations with a potential to achieve fast growth in their individual arenas.
The restructuring would provide enhanced financial flexibility to the businesses in order to independently raise resources for their future growth requirement and unlock potential valuations for the shareholders.
This initiative would get optimal valuation for the retail venture as an independently and separately listed entity along with increasing its ability to attract and retain high quality talent through implementation of ESOPs.”
He added further that given the length and breath of its presence in the UK and the brands company services within its retail outfits (from Well known established UK brands to global brands like Disney etc), the Retail entity should offer a value unlocking proposition for its shareholders.
The company at present is in the final stages of launching its retail in Indian market through the Rosebys brand. The company is set to launch its exclusive range of home textiles retail chain stores in the country. Effective launch of the product range is expected to roll out in early next quarter.
GHCL is the First vertically integrated player in the world in the arena of Home Textiles, from Fiber to Fashion with a set up that houses Retail capabilities backed by a Global Sourcing & Design of this scale.
The Home Textiles entity is set to become one of the strongest sourcing Power Houses in the world backed by its global network of vendors along with the sourcing teams.
Company’s Global Sourcing Organisation would result in significant cost reduction in terms of manpower as well as logistics.
GHCL had acquired three companies in the USA apart from the largest Home Textiles Retail chain of the UK with more than 300 stores across UK operating under the brand name of Rosebys.
The US acquisitions included Dan River, HW Baker & Best Textiles primarily catering to B2B segment. With a wide structure available under its umbrella, GHCL has been able to create efficiencies in Global Sourcing with its presence in 3 continents, and 6 sourcing hubs of the world (India, China, Pakistan, Cambodia, Turkey & Mexico).
The company has created strong Global Design Capabilities with centers in USA, EU and India and has over 40 designers worldwide in its fold along with relationships in Lifestyle licensing.
