Donear Group to expand product range with OCM Woolen Mills acquisition
today Nov 20, 2017
The promoters of Mumbai-based Donear Group have announced the acquisition of OCM Woolen Mills. The acquisition of OCM, which manufactures a premium range of high-quality all-wool and wool-blended worsted suiting fabrics, will enable the Donear Group to expand its range of products to the Indian consumers for all weather conditions and for all occasions.
The acquisition makes Donear Group India’s largest branded menswear fabric manufacturer. In a two-way deal, OCM gets access to the management expertise of the promoters of Donear Group to expand its product range and distribution footprint within India, as well as in the overseas markets.
The distributors of OCM, who generally witness lower sales during non-winter seasons, will be able to sell an additional range of products, especially Giza, Supima, wrinkle-resistant cotton fabric for jackets and trousers, and Terry Rayon fabric for suit length.
"Donear Group started its major take-off in 1994 from Amritsar. OCM is India’s best-quality manufacturer of woolen and worsted fabrics, and thanks to their skilled manpower for ensuring best quality of fabric. OCM’s tweed suiting material is extremely popular for blazer and jacket fabric across India. No other manufacturer in India has been able to match the quality of OCM blazer and jacket of Tweed fabric till date. We have charted out ambitious and aggressive plans to promote the OCM brand," Rajendra Agarwal, a promoter of the Donear Group, said.
OCM Woolen Mills is the second major acquisition by promoter of the Donear Group after it acquired GBTL Ltd. (formerly known as Grasim Bhiwani Textile Limited), the PV Suiting Fabrics business earlier in July this year. Like GBTL Ltd, OCM Woolen Mills will continue to operate as an independent unit manufacturing woolen fabric products under the guidance of Donear Group management.
"There will not be any change in the day-to-day management or existing policies at the OCM unit. Post-acquisition, all entities will continue to focus on their respective brands as separate teams and the management will continue its efforts to strengthen and utilise their competencies to serve to their customers," a company press release said.
With acquisition of OCM, the Donear Group will be able to offer a complete range of fabrics under a bouquet of brands including OCM, Ferrino Mizzoni, GBTL-Grasim (license user of TM Grasim), Donear, Graviera, Royal Classico, Donear Cottons–Belboni & Cotonova, iTR Terry Rayon Suiting and Bronson Shirting.
Originally a part of SK Birla Group (Birla VXL), OCM was acquired by private equity funds managed by WL Ross & Co. LLC in 2006.
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