Hyderabad, Dec. 5: The Secunderabad-based Suryavanshi Spinning Mills said on Monday that it will be merging its associate entity, Suryavanshi Textiles, to form an integrated company with a presence in textile making and garmenting. Suryavanshi Spinning Mills’ joint managing director R.K. Agarwal said Suryanshi Textiles, which has a capacity of manufacturing 60 lakh garments, would be merged on a “going concern” basis.

“The rationale for the merger is about providing the scale, operating model and capital structure needed to significantly increase returns and create a sustainable earnings base,” Mr Agarwal said. Suryavanshi Spinning Mills has appointed Sathguru Management Consultants to recommend thefinal scheme of merger. Mr Agarwal said Suryavanshi Textiles has been working with global garment majors in custom production of their branded products. He said the board has constituted a committee of non-promoter directors to consider the report of the advisors and to recommend the swap ratio for the merger.

Source: Deccan Chronicle
http://www.deccan.com/Business/Business.asp#Suryavanshi Spinning to merge arm