Islamabad, Oct 2: Crescent Cotton Sells Spinning Unit for Rs. 550 Million
Crescent Cotton Mills Limited (PSX: CCM) has accepted an offer of Rs. 550 million for its spinning unit located in Tehsil Pattoki, District Kasur.
According to a stock filing, the Chief Executive Officer and Director negotiated the offer, which includes the purchase of all assets of the spinning unit situated at 46 Km, Lahore Multan Road, Chak # 66, Dina Nath, Tehsil Pattoki, District Kasur.
To formalize the transaction, the Assets Sale and Purchase Agreement has been signed between the seller and buyer. it is involved in manufacturing and selling yarn and hosiery items, as well as buying, selling, and dealing with cloth.
The company also operates an embroidery unit.
The spinning unit, which is a crucial element of Crescent Cotton’s manufacturing process, has significantly contributed to the company’s operations. However, due to challenges faced by the textile sector—such as fluctuating raw material prices and fierce competition—the decision to sell is viewed as a strategic move to optimize resources.
Industry analysts have noted that this divestment is part of a wider trend within the textile industry, where companies are reevaluating their asset portfolios to stay competitive.
By offloading the spinning unit, Crescent Cotton can free up capital and redirect its focus toward more profitable areas like fabric production and exports.
