Himatsingka acquires 70 pc in Italian company

New Delhi, Jan 29: Silk fabric maker Himatsingka Seide Ltd todaysaid it will acquire 70 per cent equity stake in Giuseppe Bellora SpA,Italy, a pan European luxury brand in the bed linen segment, even as itis investing Rs 400 crore for setting up a manufacturing facility inKarnataka.

This acquisition is in line with the company's strategy to acquirehigh end distribution networks in the global home textile segment andis expected to be completed in February this year, a statement said.

According to sources, Himatsingka will have to pay about Rs130-170 crore for the stake and is eyeing more buyouts in the futurefor expanding into a global retail chain.

Trial production of the integrated bed linen facility at a specialeconomic zone in Hassan, Karnataka, is likely to commence next monthfollowed by commercial production.

Apart from exclusive stores in Italy and other parts of Europesuch as Spain, Portugal, Switzerland, Germany and France, the brand hasa presence in up-market departmental stores like Harrods, London, LaRinascente, Milan, Bonne Marche, Paris, among several others.

Bellora generated revenues of about 29 million dollars during 2006.

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