WL Ross makes 1st India investment with acquisiton of OCM thru Arcil

Mumbai, Oct 4 (UNI) For the first time in India's corporate history, WL Ross&Co, a global private equity investor in corporate restructurings, today announced it's entry into India, with the acquisition of OCM India for a consideration of USD 37 million in cash, rupees equivalent of 170 crore.

The acquisition of OCM is being made pursuant to a Scheme of Arrangement between Birla VXL Ltd and its existing lenders, creditors and shareholders and OCM and it's shareholders and being carried out through The Asset Reconstruction Company of India(Arcil), said a HDFC press release.

''The OCM acquisition is the first 100 per cent buyout of a major Indian enterprise by a global turnaround fund,'' Managing Director&CEO of Arcil, Mr Sudhamoy Khasnobis said.

''Our relationship with WL Ross provides a unique solution to Indian entrepreneurs and financial institutions that consider trust and turnaround expertise as cornerstones of any transaction,'' HDFC Chairman Deepak Parekh said.

OCM has a state-of-the-art worsted textile manufacturing facility that is one of the first ISO 9001 certified mills in India. It is one of the leading brands in the worsted fabric market and well known for its tweed and jacket suitings sold not only across the country, but also globally.

It may be recalled that WL Ross entered the textile industry in 2003 through the acquisition of Cone Mills and Burlington Industries to create one of the largest textile companies in the world, International Textile Group (ITG) with investments in US, Mexico, Latin America, China, Vietnam and Nicaragua.

''OCM establishes us in India textile sector and further adds to the resources and synergies of our textile holdings.

We expect rapid growth there in the future,'' Chairman&CEO of WL Ross, Mr Wilbur L. Ross Jr. said.

WL Ross, which opened it's Indian office in Mumbai five months ago, has sponsored over USD 4.5 billion (equivalent of Rs 20,000 crore) of alternative investments since it's founding in 2000. It's notable principal transactions include rolling up five bankrupt US steel companies into the International Steel Group, which was sold in 2005 to Mittal Steel for USD 4.5 billion.

It is pertinent to note here that Mr Ross is a member of the board of directors at Arcelor Mittal.

UNI SN WD SKB1827