Biotech: Bharat Biotech group picks up 20% stake in Tirupur-based knitwear company Eastman Exports

HYDERABAD: Bharat Biotech Group, primarily known for developing vaccines such as indigenous Covid-19 vaccine Covaxin, has picked up 20% stake for an undisclosed sum in Tirupur based knitwear firm Eastman Exports Global Clothing Private Ltd through its investment arm.

While the Hyderabad-based group did not disclose the name of its investment arm that has invested in the Tamil Nadu based apparel maker, Eastman Exports said it will be utilising the funds raised via the stake sale for capital expenditure, strengthening backward integration and customer acquisitions, among others.
Eastman Exports also said the funds will help it ramp up its presence in the global apparel market, especially at a time when other countries are facing a slowdown and countries and companies are focused on a China plus one strategy of divesting manufacturing away from a single country.

“The funds will be used in strengthening our capacities and backward integration besides reaching out to newer markets. We have already set up an office in the US and our UK office is expected to open soon. With India signing a Free Trade Agreement (FTA) with the UAE, we will look at foraying into West Asia as well,” said Eastman Exports chairman N Chandran.
He said the company is also keen on venturing into the Australian, Japanese, UAE and European markets, following the Indian government’s FTAs with them.
Tweeting about the move, Bharat Biotech quoted its managing director Suchitra Ella on Thursday as saying: “We are fully committed to the `Make in India’ strategy across industries. India is one of the few vertically integrated countries in cotton-based apparels, our vision is to grow this industry and support manufacturing from India to the world.”
“Our vision of supporting rural and semi-urban communities, especially women is addressed through this partnership, by supporting employment opportunities to around 10,000 women,” added Ella, whose group has also forayed into food business earlier.
According to the two companies, the share purchase agreement between them has been approved by the Competition Commission of India (CCI) under the `green channel’ route, which considers a transaction to be approved once it has been informed to the competition regulator and poses no risk of having a significant adverse impact on competition. The deal has been executed and both teams are working in a partnership model to grow the business, they said.