US billionaire investor Wilbur Ross has made his debut in India by buying out the troubled textile maker OCM for $37 million in an all cash deal.
WL Ross & Co, the private equity firm led by Ross struck the deal on Tuesday to acquire 100 per cent stake in OCM, which was facilitated by Asset Reconstruction Company of India Ltd.
The deal acquisition was funded by WL Ross' $300 million Indian Asset Recovery Fund, with additional funding from the WLR Recovery Fund III and Housing Development Finance Corporation.
"There are a few countries in the world that will become world leaders in textiles: India, China and we also think Vietnam. We have been looking for some time for investment in India," Ross told Financial Times.
The India acquisition will add to the firm's extensive global textiles operations.
Ross said industries like textiles and cement have been very fragmented in India and there is a need to consolidate them.
WL Ross has sponsored more than $4.5 billion of distressed assets since its founding in 2000.
Ross rolled up five bankrupt US steel companies to create the International Steel group, which was sold last year to Mittal Steel for $4.5 billion.