Karle eyes stake in overseas garment co
\nEconomic Times,\u00c2\u00a0India<\/p>\n
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BANGALORE: Bangalore headquartered Karle Group, suppliers to global brands like Liz Claiborne, Nike and Adidas, is in fairly advanced discussions with an international apparel maker to pick up stake in the latter\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s units spread across China, Vietnam and Sri Lanka.<\/p>\n
The move will be one of the rare instances of a pure play domestic garment exporter mulling an overseas buy in the wake of a currency crisis and a tough market outlook facing the sector. Partnering with an international counterpart will also boost the marketing muscle of the Indian player, sources said.<\/p>\n
If talks succeed, the privately-held Karle will enter into a joint venture with the overseas company, buying a stake in the latter\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s assets and managing the same. However, Karle\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s domestic units are expected to remain outside the proposed JV. \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cWe can\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2t name the partners with whom talks have been initiated, but we are working towards having a pan-Asian manufacturing footprint,\u00c3\u00a2\u00e2\u201a\u00ac\u00ef\u00bf\u00bd a senior official of the Karle Group told ET.<\/p>\n
This comes even as Karle has been mulling several options to tide over an industry crisis caused by appreciating rupee and slowdown in the US market. It would be pertinent to mention here that while the Indian rupee has appreciated by 9.8% since January, currencies in other nations have not risen so much.<\/p>\n
Meanwhile, sources claimed that Karle has had exploratory talks with several domestic peers for a strategic alliance, including dilution of a minority stake. However, these talks with at least two domestic companies did not progress much, sources added. The company official denied any such discussions with an Indian company.<\/p>\n
Karle is in the midst of consolidating the garment business spread across three units, karle International, LT Karle & karle Exports, into a single entity. Karle Group has an annual capacity of nearly six million pieces on the woven side besides a six lakh pieces capacity for knitwear.<\/p>\n","protected":false},"excerpt":{"rendered":"
Karle eyes stake in overseas garment co Economic Times,\u00c2\u00a0India BANGALORE: Bangalore headquartered Karle Group, suppliers to global brands like Liz Claiborne, Nike and Adidas, is in fairly advanced discussions with an international apparel maker to pick up stake in the latter\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s units spread across China, Vietnam and Sri Lanka. The move will be one of […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\n