This Small-cap Textile Company Announces 9 Company Merger to Consolidate Brand and Operations

Dollar Industries Limited, one of India’s leading hosiery and garment manufacturers, has announced a proposed strategic merger of nine promoter group companies with the listed entity. The move is aimed at consolidating brand ownership, streamlining operations, strengthening governance, and unlocking synergies for future growth.

The companies set to merge with Dollar Industries Limited (DIL) currently own the “Dollar” brand, hold real estate used for the company’s operations, and manage outsourced manufacturing activities.

The merger will bring several structural and operational benefits. Ownership of the “Dollar” brand will be transferred directly to Dollar Industries Limited, giving the company complete control over its most valuable asset and eliminating potential conflicts of interest. By integrating manufacturing and job-work units, the company aims to strengthen control over production processes, reduce external dependencies, and optimise costs by eliminating redundancies. The consolidation is expected to reduce related-party transactions, leading to clearer financial reporting and improved investor confidence. Real estate assets will be brought under the company’s direct ownership, reducing reliance on leased properties and enhancing operational stability.

Following the merger’s approval, promoter and promoter group shareholding is expected to increase from 72.21 per cent to 73.60 per cent as of June 30, 2025.

Managing Directors Mr. Vinod Kumar Gupta and Mr. Binay Kumar Gupta described the merger as a milestone in building a unified and transparent organization. They stated that consolidating the brand under the listed company will strengthen Dollar’s market presence and support future product innovation.

In addition to the merger, Dollar Industries announced its plan to restructure promoter holdings. As part of succession planning, 51 per cent of the promoters’ shareholding will be transferred into a trust. The company stated this step will ensure continuity, safeguard its legacy, and align long-term promoter interests with those of all stakeholders.

The nine promoter group entities merging into Dollar Industries Limited include Dollar Brands Private Limited, ADDS Projects Private Limited, Dindayal Texpro Private Limited (as a Demerged Company), Amicable Properties Private Limited, Bhawani Yarns Private Limited, Goldman Trading Private Limited, KPS Distributors Private Limited, PHPL Properties Private Limited, and Zest Merchants Private Limited.

The company has a market cap of over Rs 2,000 crore. The stock is up by 5 per cent from its 52-week low and has given multibagger returns of 165 per cent in last 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.