Shares of Dollar Industries Ltd surged 4.81% to Rs 384.30 on Monday after the company announced a major consolidation move. The hosiery and garment leader, with over five decades of industry presence, has proposed the merger of nine promoter group companies into the listed entity.
The entities being merged include Dollar Brands Pvt Ltd, ADDS Projects Pvt Ltd, Dindayal Texpro Pvt Ltd, Amicable Properties Pvt Ltd, Bhawani Yarns Pvt Ltd, Goldman Trading Pvt Ltd, KPS Distributors Pvt Ltd, PHPL Properties Pvt Ltd, and Zest Merchants Pvt Ltd.
Currently, these promoter group companies own the Dollar brand, the real estate used for its operations, and also manage outsourced manufacturing activities. With this merger, all such assets and functions will be transferred directly to Dollar Industries Ltd.
Key benefits of the merger:
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Consolidated brand ownership: Dollar Industries will own the Dollar brand outright, reinforcing its identity and eliminating conflicts of interest.
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Vertical integration: Manufacturing and job-work units under the group will be streamlined, enhancing efficiency and reducing external dependency.
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Operational efficiency: The merger is expected to reduce related-party transactions, strengthen governance, and improve profitability.
This strategic step is aimed at positioning the company for long-term sustainable growth by consolidating brand strength, improving control over production, and driving cost efficiency.
