Gillanders Arbuthnot & Co sells Punjab mill to Cedaar Textile

A Kothari Group firm, Gillanders Arbuthnot & Company has sold its Punjab-based textile spinning unit to Cedaar Textile.

In September last year, Kolkata-headquartered Gillanders Arbuthnot & Co had received shareholders' approval for sale of its unit.Gillanders Arbuthnot & Co was founded by FM Gillanders and GC Arbuthnot in 1935.

Last year in February, it entered into an agreement for slump sale of one of its tea estates to Jutlibari Tea And Plantations LLP, Assam, for Rs 15.90 crore. In its annual report, the company stated that the sale was done “in order to reduce debts and improve the overall profitability”.

For the quarter ended September 2020, the company reported a 67.5 percent year-on-year jump in net profit at Rs 25.9 crore. It posted a net loss of Rs 14.7 crore for the April-June quarter 2020.

For the year ended 2019-20, the firm swung to a net loss of Rs 15.2 crore from a profit of Rs 32.4 lakh, on a total income of Rs 660 crore, which was down 12% year-on-year.

Established in September 2020 with a corporate office in Bengaluru, Cedaar has a factory in Ludhiana manufacturing yarn and fabric and also providing spinning, knitting and dyeing with a focus on organic and recycled fibres.