Grasim India is buying Soktas India. This is currently a wholly-owned subsidiary of Soktas, based in Turkey, a producer and marketer of fabrics. At present, Soktas is in the business of manufacturing and distribution of premium cotton fabrics with its manufacturing facility in Maharashtra. The company posted a revenue and ebitda of Rs 186 crores(US$26.54million) and Rs 31 crores(US$4.42million) , respectively, for the fiscal ended March 2018. It sells premium fabrics in India under the Soktas, Giza House and Excellence by Soktas brands. The company is also a supplier to leading Indian and global menswear brands.

The acquisition is in line with Grasim’s business strategy to strengthen its presence in the premium fabric market. Grasim’s aim is to strengthen its leadership in the premium cotton and linen fabric market in India. Increasing disposable income, fashion and quality orientation of Indian consumers has resulted in an increase in the demand for premium fabric over the years. The company is known for its fabric brand Liva introduced in 2015.

Grasim, a part of Aditya Birla, is the world’s fourth largest pulp producer and one of India’s largest viscose staple fiber (VSF) producers. In India, the demand growth for VSF at eight per cent is higher than global demand growth.