Chennai-based Celebrity Fashions has signed a memorandum of understanding (MoU) with Ambattur Clothing to acquire latter’s trouser manufacturing unit. Total production capacity is 6m trousers per annum. Total investment is expected to be Rs 80 crore and the acquisition will be complete by April ‘06. For this, the company is raising capital through an IPO of 45.5 lakh equity shares of Rs 10 each, with a price band of Rs 160-180. “To take advantage of opportunities to improve margins through value addition, we are acquiring the trouser manufacturing plant, expanding the garment manufacturing capacity and the reach in the
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| branded apparel segment through own stores,” said Celebrity Fashions CMD V Rajagopal. The company exports men’s shirts and owns the Indian Terrain brand in the domestic market. It supplies to companies like Kohl Corporation, Timberland and Eddiebauer in the US, and Diesel, Marlboro Classics, and Armani in Europe. Exports during the first half of the current fiscal ended September 30, ‘05 touched Rs 68.6 crore. The Indian Terrain brand is retailed through five standalone stores, and 276 multi-brand outlets. Domestic sales of the branded apparel segment recorded a growth of 90.73% in the past five years, increasing from Rs 1.05 crore in ‘00-01 to Rs 26.6 crore in ‘04-’05. 
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