Dollar Industries announces Strategic Merger of Promoter Group Companies

Dollar Industries Limited, one of India's leading hosiery and garment Company with a strong brand presence and over five decades of industry leadership, announced today the proposed merger of nine promoter group companies into the listed entity.

The proposed merger will consolidate certain promoter group companies into the listed Dollar Industries Limited. These companies currently own the Dollar brand, the real estate used for Dollar Industries' operations, and entities handling outsourced manufacturing, all of which will be transferred to the listed entity.

This consolidation will give Dollar Industries brand ownership, greater control over production, streamline administrative processes, reduce related party transactions, and strengthen governance, while enhancing efficiency, profitability, and positioning the company for long term sustainable growth.

The merger involves the following promoter group entities:

- Dollar Brands Private Limited
- ADDS Projects Private Limited
- Dindayal Texpro Private Limited (Demerged Company)
- Amicable Properties Private Limited
- Bhawani Yarns Private Limited
- Goldman Trading Private Limited
- KPS Distributors Private Limited
- PHPL Properties Private Limited
- Zest Merchants Private Limited

Key Benefits of the Merger:

- Consolidated Brand Ownership: Ownership of the "Dollar" brand will be centralized under Dollar Industries Limited, eliminating conflicts of interest and reinforcing brand strength

- Vertical Integration: The merger of manufacturing and job-work units will enhance control over production processes and reduce external dependencies

- Operational Efficiency & Cost Optimization: Streamlined operations will reduce redundancies, administrative overheads, and compliance costs

- Enhanced Transparency: Significant reduction related party transactions will provide clearer financial reporting and strengthen investor confidence

- Improved Infrastructure Utilization: Integration of real estate assets will reduce lease dependencies and improve operational control

Post-merger approval, the promoter and promoter group shareholding is expected to increase from 72.21% to 73.60% (as of June 30, 2025).

Commenting on the results, Mr. Vinod Kumar Gupta and Mr. Binay Kumar Gupta, Managing Directors, Dollar Industries Limited said: "The merger marks a significant milestone in our journey to strengthen governance and create a unified, transparent, and future-ready organization. A key highlight of the merger is the transfer of the 'Dollar' brand ownership directly to Dollar Industries Limited. This not only removes any potential conflict of interest but also gives the company complete control over one of its most valuable assets. With the brand consolidated under the listed entity, we will be able to strengthen our market presence, drive innovation in product offerings, and build even greater trust among our investors & other stakeholders.

In addition to the brand, the merger will also consolidate certain real estate assets used in Dollar Industries' operations and portions of outsourced manufacturing currently held or managed by promoter group companies into the listed entity.

In furtherance to its strategy to enhance governance and trust, the company also intends to restructure its promoter holding by moving 51% promoter of company's shareholding forming part of the promoter group shareholding into a trust. This step is intended to ensure continuity, address succession concerns, and strengthen long-term alignment with the interests of all stakeholders. By institutionalizing ownership through a trust, Dollar Industries will safeguard its legacy while providing the stability, transparency, and governance needed for its next phase of growth.

By unifying brand ownership, manufacturing units, and infrastructure under one umbrella, and complementing it with a robust succession framework, Dollar Industries is well positioned to scale faster, innovate better, and deliver sustainable value to all stakeholders."

Shares of Dollar Industries Limited was last trading in BSE at Rs. 367.10 as compared to the previous close of Rs. 369.80. The total number of shares traded during the day was 7893 in over 302 trades.

The stock hit an intraday high of Rs. 373.00 and intraday low of 364.00. The net turnover during the day was Rs. 2899067.00.

Source : Equity Bulls

Keywords

DollarIndustries INE325C01035 Merger GroupCompanies