Reinforcing its prominent position in the textile industry, Shriniwas Spintex Industries has recently acquired Butibori-based Morarjee Textiles Ltd., a part of the Ashok Piramal Group.

Govind Rathi-led Shriniwas Spintex Industries, based in Hinganghat in adjoining Wardha district, took over the company through the court monitored bankruptcy process at a cost of Rs 156 crore. Two other bidders - Dev Land & Housing and Nirmal Ujjwal Credit Co-operative Society - had also bid for the company. But eventually both the bidders were disqualified. Shriniwas Spintex Industries paid 30 per cent of the total cost up front while remaining amount will be released within a year.

 

Morarjee Textiles was admitted into bankruptcy in February 2024 after a plea by Axis Bank. The National Company Law Tribunal, Mumbai Bench (NCLT) had ordered the commencement of Corporate Insolvency Resolution Process (CIRP) in respect of Morarjee Textiles Ltd under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC). The insolvency petition against the company was filed by Axis Bank after the former defaulted on a payment of Rs 130 crore. Morarjee Textiles owes creditors, including Axis Bank and other banks, Rs 760 crore. At present the company is utilising 25 per cent of its total capacity and providing jobs to more than 1,000 persons. It is engaged in manufacturing, processing, spinning and weaving of yarn and fabric. Morarjee Textiles boasts a high-profile list of clientele that includes domestic and international brands across 44 countries.

 

This list includes brands like Uniqlo, Zara, Esprit, Next, Paul Smith, M&S, H&M, ANF, Belk, Moss Brothers to name a few. Some of the domestic client brands include names like Louis Philippe, Van Huesen, Blackberry and Zodiac.

Sources told The Hitavada that Morarjee Textiles will further increase its capacity utilisation in coming days. Currently Shriniwas Spintex Industries is a 1 lakh spindle capacity company.

 

Earlier in 2023, Shriniwas Spintex group also acquired the 120-year old RSR Mohota Mill (Rai Saheb Rekhchand Mohota Spg. & Wvg. Mills Ltd) located in Hinganghat, in Wardha through NCLT process.