Indo Count Industries Limited, a leading global player in the home textile industry, announced the acquisition of US-based Modern Home Textiles, Inc. for a total consideration of $11.7 million. This strategic move is expected to bolster the company’s presence in the North American utility bedding segment.
Strategic Fit and Future Prospects
Modern Home Textiles, established in 2023, is a manufacturer of a wide range of utility bedding products, including pillows and filled products. The acquisition aligns seamlessly with Indo Count’s existing business, which primarily focuses on bed linen, fashion, utility, and institutional bedding. By integrating Modern Home Textiles, Indo Count aims to expand its market share in the North American region.
Market Reaction and Financial Performance
Following the acquisition announcement, Indo Count Industries’ share price surged by 3.79% on the BSE, reaching Rs 375.15 per share. However, the stock later retreated, trading marginally higher at Rs 361.55.
In the first quarter of the fiscal year 2024-25 (Q1FY25), Indo Count Industries reported a 27.22% year-on-year increase in revenue, reaching Rs 949.97 crore. The company’s net profit also witnessed a 5.51% year-on-year growth, amounting to Rs 77.80 crore.
The acquisition of Modern Home Textiles is expected to further strengthen Indo Count Industries’ position in the global textile market and contribute to its long-term growth and profitability.
