Century Textiles and Industries incorporates JVC Birla Advanced Knits with Grasim; Stock up 1%

The company has also sold Century Yarn Unit and Century Denim Unit in Khargone, Madhya Pradesh for a total of Rs62cr.

Jul 16, 2021 09:07 IST India Infoline News Service

Century Textiles and Industries Limited (CTIL) has incorporated a Joint Venture Company (JVC) namely, ‘Birla Advanced Knits Private Limited’ on July 14, 2021, to foray into manufacturing of Man-Made Cellulosic Fibre (MMCF) Knit Fabrics in partnership with Grasim Industries Limited (Grasim). The Company on July 15, 2021, also executed a Joint Venture Agreement with Grasim. Both the parties will subscribe 50% each in the paid-up equity share capital of the aforesaid Joint Venture Company.

CTIL and Grasim both shall initially subscribe to 5,000 Shares each of face value of Rs10/- per share in the JV Company as a minimum capital thus having an equal shareholding in the JV Company i.e. 50% each.

In a separate filing the company informed that the Century Yarn and Century Denim Units of the Textile Segment of the Company situated at Satrati, Dist. Khargone, Madhya Pradesh operations of which were classified as 'Discontinued Operations' since October, 2017 ("said Units") have been sold and transferred to Manjeet Global Private Limited and Manjeet Cotton Private Limited ("Buyers") respectively.

The company received consideration Rs62cr for both the Units i.e. Rs16cr towards sale of Century Yarn Unit and Rs46cr towards sale of Century Denim Unit.

“The Company had offered a Voluntary Retirement Scheme (VRS) to the employees/workers on the payroll of the said Units and has paid compensation and other dues to the remaining workers in accordance with law,” company said.

At around 9.42 AM, Century Textiles & Industries Ltd was trading at Rs720.05 per piece up by Rs7.15 or 1% from its previous closing of Rs712.90 per piece on the BSE.

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