Welspun acquires 76 per cent stake in Portugal's Sorema for Rs60 crore

Mumbai: Terry towel and bed linen maker Welspun India Ltd has acquired 76 per cent stake in Portugal-based bath rugs maker Sorema for around Rs60 crore.

The two companies have also signed an agreement for marketing products exclusively in Spain, Portugal and other European countries, Welspun said in a statement.

Last year Welspun acquired 85 per cent stake in U.K's towel firm Christy.

Sorema is a leading player in bath rugs and shower curtains with expected revenues equivalent to Rs57 crore for the financial year 2007.

Meanwhile, group company Welspun Gujarat is close to acquiring a European company in a deal close to $100 million.

Welspun plans to use the proceeds of its recent FCCB issue to fund the acquisition. Welspun had raised close to $725 million by FCCB issue.

Welspun Gujarat is also close to winning some big orders in the international market. The company has put in a bid for close to $2 billion of orders in the international market, of which it expects close to 40 per cent over the next couple of months.

The company gets large orders, especially from the US and Canada, which is the big market for pipes.