The funds will also help the company increase its presence in the global apparel industry, especially at a time when other countries are facing a slowdown and to capture the overall China plus one strategy of divesting manufacturing away from a single country, Eastman Exports and Bharat Biotech Group said in a joint press release.

“We are thrilled to partner with Bharat Biotech Group. The funds will be used in strengthening our capacities and backward integration besides reaching out to newer markets. We have already set up an office in the US and our UK office is expected to open soon. With India signing a Free Trade Agreement (FTA) with the UAE, we will look at foraying into West Asia as well,” said N Chandran, chairman of Eastman Exports, adding that the investment is a strong vote of confidence in their business.

The company is also keen on venturing into the Australian, Japanese, UAE, and European markets, following the government of India’s FTAs with them.

“We are fully committed to the Make in India strategy across industries. India is one of the few vertically integrated countries in cotton-based apparels, our vision is to grow this industry and support manufacturing from India to the world. Our vision of supporting rural and semi-urban communities, especially women is addressed through this partnership, by supporting employment opportunities for around 10,000 women,” said Suchitra Ella, managing director of Bharat Biotech.

The share purchase agreement between the two companies has been approved by the Competition Commission of India under the ‘green channel’ route, which considers a transaction to be approved once it has been informed to the competition watchdog and poses no risk of having a significant adverse effect on competition. The deal has now been executed with both teams working in a partnership model to grow the business.

Fibre2Fashion News Desk (NB)