Ahmedabad-based textile manufacturing company Soma Textiles & Industries Ltd has sold its Baramati unit to GTN Engineering (India) Ltd for around Rs 29.8 crore ($5.46 million) on slump sale basis, as per a stock market disclosure.
The firm had received an approval to dispose the Baramati unit last October. The firm had earlier switched to a single shift production at the Baramati unit in the wake of lower prices for cotton yarn and poor export market for textiles.
Founded in 1940, Soma Textiles & Industries has three business verticals- denim fabric vertical, piece dyes business vertical and jeans wear business vertical.
It is into products ranging from shirting and bottom-wear categories in 100 per cent cotton, polyester cotton blends and poly-cottons. It provides these finished fabrics in piece dyed, bleach and ready-to-dye varieties. These fabrics are manufactured in plain, twill, satin weaves and various dobby designs.
The firm had revenues of Rs 267 crore with net loss of Rs 75 lakh for the year ended March 31, 2012. The company currently has a market cap of just Rs 13 crore.
(Edited by Prem Udayabhanu)