Birla Century Yarn and Century Denim units were sold for a paltry sum of just Rs 2.51 crores ($0.3million) to Wearit Global. In a disclosure under regulations 30 of Securities and Exchange Board of India, Century Yarn and Century Denim units of textile business segment, under B K Birla Group of Companies, the board of directors approved the sale on as is where is basis on August 22, as a going concern, with a lump sum consideration of Rs 2.51 crores. The company had a turnover of Rs 253 crores ($38.92 million) in the financial year ending March 31, 2017. The networth of these companies as disclosed were 25.52 crores ($3.92million).
The rationale for the sale as disclosed was: since operations of Century Yarn and Century Denim were not viable due to their small sizes, it was considered appropriate to sell the units. Sources close to the directors revealed the unit had an asset base of over Rs 300 crores in Madhya Pradesh, including land and machinery but were making losses to the tune of Rs 3 crores ($4 .6million) every month.
Wearit Group, is into textiles, tea and energy business. In textiles, it has manufacturing capacity of approximately 4,000 MT/ month of high quality ring spun yarn from 200,000 running spindles across five state of the art spinning plants in India. Wearit is a recognized export house and exports 70 per cent of its total production to Europe and the United States.