Mumbai, Apr 2 (IANS): Diversified group GHCL has completed the divestment of its home textiles business to lndo Count Industries effective Saturday, after obtaining all relevant regulatory and shareholders' approvals.

The transaction entailed a total consideration Rs 608.30 crore.

The group said that divestment of GHCL's home textiles business is a significant value unlocking exercise for all its stakeholders.

In a statement, the group said that the total consideration for divestment of the home textiles business has been calculated at Rs 608.30 crore (subject to validation of customary closing date adjustment of working capital in terms of the definitive agreements).

The move, it said, will enable the management to focus on the strategic growth pillars of chemical and spinning businesses.

Besides, the group cited that the proceeds of the sale will be used for further initiatives such as Greenfield project, product basket expansion, clean energy and ESG initiatives, automation and exploring opportunities to enter into JVs.

"The divestment of the home textiles business is a strategic move which we believe will unlock value for all our stakeholders," said R.S. Jalan, Managing Director, GHCL.

"We have been able to complete the process seamlessly on time and with all relevant approvals in place," Jalan added.

At present, GHCL has footprints in chemicals and spinning businesses. In the chemicals space, the company mainly manufactures soda ash which is a major raw material for detergents and glass industries and sodium bicarbonate.

In textiles, its spinning unit at Madurai produces multiple varieties of fibre (yarn), which is sold to domestic consumers as well as exported worldwide.