BRFL Textiles Private Limited (BTPL), one of the largest single-roof fabric processing units in India, has completed a Rs. 2.4 billion (Rs. 240 crore) equity infusion from a consortium of marquee financial investors led by JM Financial India Fund II (an Indian growth private equity fund), Think Investments (a San Francisco-based investment firm) and others.
BTPL was formed as a separate entity in August 2020 as a part of a restructuring process undertaken by Bombay Rayon Fashions Limited.
In new formation, BTPL hived-off its Yarn Dyeing & Fabric Processing units located in Tarapur, into BTPL by way of a slump sale on a going concern basis.
The company’s brands, including Bombay Rayon, BRFL, Linen Vogue, Giza Classe, Dickens & Browne and others, are also a part of this transaction.
According to BTPL, the equity capital will be utilised primarily to fund the growth of the business and for initial capex to bring the plant up to speed.
The new entity, committed to ‘Make in India’, will also look to export its products and to take advantage of the ‘China plus One’ strategy, prompting global firms to diversify their sourcing away from China to India.
Prashant Agarwal, Managing Director, BTPL, commented, “We are confident that now with a fully funded operation with almost no debt, the Tarapur unit housed in BTPL is poised to grow into one of the leading fabric processing houses in India. We shall aim to set new benchmarks in servicing our customers with timely deliveries of new age fabrics and by supplying innovative designs. BTPL is augmenting its talent pool by hiring senior professionals and spending on maintenance capex to ensure full utilisation of its 400,000 metres per day capacity. We shall further invest in technology to ensure increased efficiency of our state-of-the-art machineries at our plant that adheres to all regulatory and business compliances.”
On the other hand, Darius Pandole, Managing Director & CEO, PE & Equity AIFs at JM Financial Limited, commented on the investment and said, “We believe BTPL has a huge growth potential and the fund infusion will help the company scale-up its business. BTPL will benefit from the ‘Make in India’ push in our country. This is the sixth investment from our Fund II, and is in line with its stated strategy of investing in growth companies in the mid-market space.”