US billionaire Wilbur Ross buys OCM for $37 million

Mumbai: US investor Wilbur Ross has acquired sick textile manufacturer OCM India Ltd for $37 million. Ross' $300 million India Asset Recovery Fund L.P funded the acquisition, with investment from WLR Recovery Fund III LP and home-motgage lender Housing Development Finance Corporation, WL Ross & Co, the investor's New York- based buyout firm said in a statement.

OCM India, which has 34,000 spindles and 185 looms, sells its tweed and jacket suiting through 60 wholesalers and 1,200 retailers across the country. Ross acquired the entire company from the Asset Reconstruction Company of India, which buys non- performing assets from other banks.

Ross last month acquired two auto-parts manufacturers that offer plastics, metal parts and safety components to carmakers worldwide for $305 million as part of a plan to form three publicly held companies.

Ross also bought small steel makers to build International Steel Group Inc., which he sold to Mittal Steel in April 2005.

For the International Textile Group, the buyout will increase sales in India. The textile company has investments in the US, Mexico, Latin America, China and Vietnam.

Indian textile makers are also expanding capacities to meet increasing demand from companies such as Wal-Mart Stores Inc and JC Penney Co.

India reported a 22 per cent rise in textile exports at $8.2 billion in the year ended March 31, the first after the abolition of export quotas worldwide.