Garware Technical Fibres Limited (GTFL), a leading player in India’s technical textile industry, has informed stock exchanges that it is making a major overseas investment.

The company has approved a subscription to 93,94,444 equity shares of GBP 1.00 each in its wholly owned UK subsidiary, Garware Technical Fibres UK Pvt. Ltd. (GTF UK), for a total of GBP 93,94,444.

This capital infusion will fund GTF UK’s acquisition of 100% shareholding in two Norwegian companies: Offshore and Trawl Supply AS (OTS) and Advanced Mooring Supply AS (AMS).

Purpose of the Investment

Garware Technical Fibres explained that the share capital raised by GTF UK will be used principally for the acquisition of the two Norwegian target companies.

This acquisition strategy aligns with the company’s core business in technical textiles, ensuring that:

• The deal remains within the main line of business of the listed entity.

• The investment supports global expansion and market diversification.

With this move, OTS and AMS will become wholly owned subsidiaries of GTF UK, making them step-down wholly owned subsidiaries of Garware Technical Fibres Limited.

About the UK Subsidiary

Garware Technical Fibres UK Pvt. Ltd. (GTF UK) is a wholly owned subsidiary incorporated in England and Wales on 14 March 2025.

Key details include:

• Company Number: 16316608

• Initial Share Capital: GBP 10,000 (10,000 shares of GBP 1.00 each)

• Current Turnover: Nil (as it has just been incorporated)

The UK unit is specifically set up to facilitate international acquisitions and operations, providing the group a local presence in Europe.

Details of the Norwegian Targets

The investment will allow GTF UK to acquire 100% of the equity shares of Offshore and Trawl Supply AS and Advanced Mooring Supply AS, both based in Norway.

Offshore and Trawl Supply AS (OTS) and Advanced Mooring Supply AS (AMS) operate in sectors closely linked to Garware’s technical textile business, particularly:

• Offshore fishing gear

• Marine ropes

• Mooring systems

The acquisition will give Garware Technical Fibres a strategic foothold in Norway, a country with a strong maritime industry, enhancing product portfolio and market access.

Transaction Structure and Related Party Considerations

Garware Technical Fibres confirmed that:

• GTF UK is its wholly owned subsidiary, making the transaction a related party transaction.

• The transaction is conducted at arm’s length.

• There is no interest of the promoter or promoter group in GTF UK except that Mr. V. R. Garware, CMD and promoter of Garware Technical Fibres, is also appointed as a Director of GTF UK.

This disclosure ensures full compliance with SEBI regulations on related party transactions.

Consideration and Financing Details

• The entire investment is cash consideration.

• The cost of acquisition is by subscription to 93,94,444 equity shares of GBP 1.00 each.

• Aggregate value of the investment: GBP 93,94,444.

Garware Technical Fibres clearly specified that there will be no change in the percentage shareholding of GTF UK after this subscription, as it remains a 100% subsidiary.

Timeline and Regulatory Approvals

• Indicative time for completion: On or before 31 July 2025.

• Governmental/regulatory approvals required: None reported.

This timeline suggests a swift execution, ensuring early integration of the newly acquired Norwegian companies into Garware’s global operations.

Strategic Rationale for the Acquisition

The company highlighted that the acquisition will:

• Expand Garware Technical Fibres’ international footprint in Europe.

• Strengthen product lines in offshore fishing and mooring systems.

• Support the company’s vision of global leadership in technical textiles.

• Create step-down subsidiaries that will be directly managed through its UK unit.

By entering the Norwegian market, Garware Technical Fibres will gain access to:

• Advanced maritime markets.

• High-value customers seeking specialized technical textile solutions.

• Opportunities for cross-selling and technological exchange.

Industry Context

The technical textile industry has seen rising demand globally, especially in:

• Maritime and offshore equipment.

• High-strength ropes and nets.

• Mooring solutions for offshore platforms and ships.

With strong domestic and export demand, Indian companies like Garware Technical Fibres are scaling up international operations to meet the growing need for advanced materials and solutions.

Corporate Governance and Disclosure

This entire investment plan has been formally disclosed to the stock exchanges in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.

Such transparency is essential to:

• Inform investors of significant overseas investments.

• Ensure regulatory compliance.

• Maintain trust and credibility with stakeholders.

Garware’s Company Secretary, Sunil Agarwal (FCS 6407), signed the disclosure confirming the investment details and its use for the Norwegian acquisitions.

Conclusion

This strategic investment by Garware Technical Fibres Limited in its UK subsidiary marks a significant step toward global expansion.

By funding the acquisition of Offshore and Trawl Supply AS and Advanced Mooring Supply AS, Garware is set to strengthen its position in the technical textile industry, enhance its product portfolio, and secure a strong European market presence.

Investors and industry watchers can see this as a well-calculated move to leverage international opportunities, increase market share, and maintain leadership in specialised technical textile solutions.

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