Grasim gains rights to manage VFY business of Century Textiles

As an extension of the consolidation process within the Aditya Birla Group companies, Grasim will attain the right to manage and operate the viscose filament yarn business of Century Textiles and Industries Limited for 15 years.

The viscose filament yarn (VFY) business of Century Textiles is a revenue-generating business for which Grasim will pay a commuted royalty of Rs. 600 crore and a refundable security deposit of Rs. 200. Grasim will also provide a Net Working Capital estimated at Rs. 165 crore.

At 10:56 hours on Wednesday, the stock of Century Textiles was trading at Rs. 1,334.85 per share, down by Rs. 47.50 or 3.44 per cent on BSE. While Grasim was trading at Rs. 1,113.25 per share, down by 0.30 per cent.