According to IFC documents, the proposed investment is a loan of up to $ 69 million to HSL. The proceeds will be utilized towards part financing HSL’s terry towel plant capacity expansion through debottlenecking, implement specified decarbonization actions and to refinance long term debt (“the Project”). The debottlenecking is expected to increase HSLs terry towel production capacity by 60% to 40,000 tpa at its Terry Division located at HSLs integrated Hassan Plant campus (Plant co-ordinates: 12°57'21.9N 76°05'51.6E) in Karnataka. The proposed debottlenecking based expansion includes neither additional land parcel requirements nor any major building infrastructure to be developed. IFC does not have any past investment experience with the Company.
The total Project cost is approximately US$85 million. IFC will provide a financing package of upto US$69 million equivalent. The financing package will include (i) INR denominated Non-Convertible Debenture (NCD) of up to INR 4,600 million (approximately US$56.5 million) and (ii) and Foreign Currency Convertible Bond (FCCB) of up to US$12.50 million.
The Company was founded in 1985 by Dinesh Kumar Himatsingka. It is currently listed on both Bombay Stock Exchange and National Stock Exchange. The majority ownership of HSL is with the Himatsingka family (“the Sponsors”) with about 48% shareholding, and the balance is held by public and institutional shareholders.
Himatsingka Seide Limited (“HSL” or the “Company”) is one of the leading vertically integrated home textile manufacturing companies that designs, develops, manufactures and distributes a suite of home textile products. Himatsingka Seide Limited (“HSL” or “the Company”) is one of the leading vertically integrated textile enterprises in India (https://www.himatsingka.com/) and operational since 1985. HSL has full range of capability in textile design, development, manufacture, and distribution with a suite of textile products ranging from made-up bedding products, terry towels, drapery and upholstery fabrics. With over 15 brands, the Company has amongst the largest portfolio of home textile brands, catering to its markets in about 32 countries across North America, Europe and India-Asia.
Going forward, the Company intends to add more brands as part of its long-term growth strategy and enhance its market share in branded home textiles segment. HSL’s own & licensed brands (Pimacott, Organicott and Home Grown Cotton) are also equipped with the DNA-tagged technology which provides its clients with the ability to trace raw materials and ensure purity of cotton across supply chain.HSL operates four integrated manufacturing plants across two locations in the state of Karnataka in India. The installed capacities for manufacturing bedding and bath products, drapery and upholstery fabrics, and fine-count cotton yarn are amongst the largest in the world.
Himatsingka Seide Limited
Executive Vice President & CFO – Strategic Finance
10/24 Kumara Krupa Road, High Grounds, Bengaluru – 560 001 Karnataka, India
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