Coats PLC said it will take an exceptional charge of £10m in the first half of the current year, resulting from the closure of its apparel fabrics business in India.

Madura Coats Ltd, which is 51.52 per cent owned by Coats, announced that the closure has been completed with about half of the division's 1,700 workforce redeployed in the expanded threads business and the remainder taking voluntary retirement.

Coats said the closure is the first step towards the creation of a focused Indian thread business. The textiles division of Madura Coats Ltd will continue to employ 3,000 people and its short-term performance is not expected to be significantly impacted by the withdrawal from apparel fabrics.

Madura also announced a buyback of up to 18 million shares, equivalent to 25 per cent of its equity, at a price of 27 rupees.

Coats said it would not be tendering its shares for buyback.

Coats is announcing its results for first half to June 30 on Sept 5.


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