Reid & Taylor and Digjam: A Finquest Group Consolidation

One of India's oldest textile brands, Digjam & Reid & Taylor brand were acquired by Finquest Group through the Corporate Insolvency Resolution Process (CIRP). After five years, the Finquest Group has announced the consolidation of Reid & Taylor with Digjam, a move that will consolidate the two brands under a single corporate structure. This strategic integration will also pave the way for the listing of Reid & Taylor, leveraging Digjam's existing status as a listed entity.

- By Haresh Shah

Finquest Group is Mumbai based group owned & controlled by Mr. Hardik Patel having diversified interest in Finance, paper and textile business. The group owns a listed company in Textile sector namely Digjam Limited.

Reid & Taylor International Private Limited ('RTIL' or “Demerged Company”) is engaged in the business of textile manufacturing and undertaking job work services and trading activities under the brand name of Reid & Taylor.

Digjam Limited (“Digjam” or “Resulting Company”) is engaged in the business of trading in all kinds of textiles and manufacturing of high-quality woollen/worsted fabrics under the brand “DIGJAM”.

Acquisition of Brands through CIRP

RTIL journey is nothing short of a rollercoaster ride so far. RTIL was admitted into the Corporate Insolvency Resolution Process (CIRP) in 2018 after the National Company Law Tribunal (NCLT) found the company unable to repay debts—totalling over ₹4,100 crore—and deprecated its financial viability. Multiple revival attempts failed, and NCLT ordered liquidation, calling for the company to ideally be sold as a going concern.

In one of its kind decision that time, In May 2019, NCLT permitted Finquest Financial Solutions, a key lender and first charge holder, to take symbolic possession of Reid & Taylor's assets—including land in Mysore, inventory, machinery, and receivables—to oversee their sale and maximize value for creditors.

In 2020, through the insolvency process, the Finquest Group acquired Reid & Taylor, gaining control of the brand and its assets. Post-acquisition, the group invested heavily, over ₹750 crore to revive the business. Investments included a ₹300+ crore premium cotton shirting manufacturing facility at Bharuch, and boosting operations at the Mysore suiting plant.