Nagpur, Feb 10: Indo Rama Corporation, the world's leading artificial thread manufacturing group, has initiated the process of acquiring the Indo Rama Synthetics (I) Ltd, sources said.
Incepted in 1993 in the industrial suburb Butibori, the Indo Rama Synthetics is the largest industrial project in Vidarbha region. However, as demand for artificial threads gradually declined in the global market, the company had to reduce production.
The financial crunch has hampered the production capacity which has led to the decision of selling off the company.
The reason for similarity in the names of buyer (Indo Rama Corporation) and seller (Indo Rama Synthetics) companies is due to the fact that both the firms are separately managed by Lohia brothers.
Headquartered in Jakarta, the buyer company is run by Prakash Lohia while the Indo Rama Synthetics is managed by the elder brother Om Prakash Lohia.
A 10-12 member delegation has been sent from Indonesia for evaluation process of the Indo Rama Synthetics and the deal will be tentatively closed off in the months of June/July, sources added. (UNI)