Century Textiles and Industries, once a star among Indian investors, is looking to demerge its textile business. It may merge it with Aditya Birla Fashion & Retail (ABFRL) to bring the entire textile and fashion business of the Aditya Birla Group under one roof.
In the past one year, ABFRL itself has undergone major restructuring under which the fashion business of Aditya Birla Nuvo – comprising Madura Garments – was merged with the company, making it the largest fashion retail player, with consolidated revenues of Rs 12,000 crore. Century earned about Rs 1,817 crore, or 8.6 per cent of total revenues, from its fabrics and denim business and is a supplier to ABFRL. Analysts said, with a new management led by Birla Group chairman Kumar Mangalam Birla now taking charge, a restructuring of its businesses is now inevitable. After raising their stake through a preferential offer, the Birlas have consolidated their grip over the company by inducting Rajshree Birla on the board of Century Textiles in May last year. Kumar Mangalam Birla is vice-chairman of the company, even as present chairman B K Birla is unable to look after the day-to-day affairs of the group due to failing health.