Bharat Biotech’s investment arm picks 20% stake in Eastman Exports

Hyderabad: Tamil Nadu-based knitwear firm Eastman Exports Global Clothing Private Limited said Bharat Biotech Group’s Investment arm has invested in the company by buying around 20 per cent of equity stake. The deal has been executed with both teams working under partnership model to grow the business.

Eastman Exports informed it will use the new investment for capital expenditure, strengthening backward integration and customer acquisition among others. 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.

Suchitra Ella, Managing Director, Bharat Biotech said, “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 to around 10,000 women.”

N Chandran, Chairman, Eastman Exports said that they have already set up an office in the US and the UK office is expected to open soon. “With India signing a Free Trade Agreement with the UAE, we will look at foraying into West Asia as well. We are also keen on venturing into the Australian, Japanese, UAE and European markets, following the Government of India’s Free Trade Agreements with them,” he further said.

The share purchase agreement between the two companies has been approved by the Competition Commission of India under the “green channel” route.