AHMEDABAD: Debt-ridden Aarvee Denims Exports Limited is at the cusp of finalising the sale of its iconic denim manufacturing facility in Pirana.
Sources privy to the development confirmed that the factory, spread over 70,000 square yards, is being sold to HS Group for an estimated Rs 150 crore.
The group has procured the factory on Vishala-Narol highway to develop an industrial park on the land, said sources.
"We will sell factory sheds to small manufacturing units planning to set up base here," said a source in HS Group, adding: "The sheds will be built on plots ranging from 200 to 5,000 square yards or more."
However, the denim maker -- one of the pioneers in Gujarat's denim manufacturing industry along with Arvind Limited -- claims that deal is still in the final stage of discussions.
"We expect to close the deal by the end of March or early April," said Ashish Shah, managing director, Aarvee Denims Exports Limited.
The firm, which is currently reeling under a debt worth an estimated Rs 200 crore, is trying to reduce the burden by selling its assets. The company has already sold 14 windmills in a bid to reduce its financial liabilities.
Sources also confirmed that Aarvee Denims will soon come up with a modernization plan for its Narol and Changodar factories in a bid to ramp up denim production.
