Faze Three Acquires Pana
October 29, 2007,
Mumbai, India —Indian bath rug manufacturer Faze Three Ltd. is calling its recent acquisition of the major European bath rug company Pana Textil GmbH a “cost effective synergy” that marries the former's strength in rubber-backed cotton bath rug production with the latter's high-tech printing capabilities.
Added Ajay Anand, managing director of Faze Three: “The strategic acquisition of Pana widens our reach into Europe as well as opening new opportunities in the U.S. It is a perfect synergy. [We] will leverage [Pana's] strengths in cost competence, design, wide product portfolio, central procurement and systems and processes.”
Pana was founded in 1953. It owned and operated two manufacturing plants – one in Germany and the other in Hungary – when Faze Three purchased it on Oct. 1.
Considered the second largest supplier of bath rugs in Europe, Pana boasts what Shafran called broad distribution throughout the continent. Its bath rug assortment comprises tufted and printed bath rugs, but the company also makes and sells accent- and area-size woven and tufted rugs.
While Faze Three plans on focusing its Pana production on distribution mainly for Europe, Shafran said the company also plans on creating some special lines for the U.S.
“We think we can take some of those attributes and apply them to the U.S. market,” he said. “The new U.S. offerings will fill a different niche than we already offer.”
Faze Three's journey in manufacturing began 23 years ago, when the company started out producing cotton tabletop-tufted bath rugs and woven cotton accent rugs.
Only three years ago, the company acquired a rubber-backed rug company. “We started producing them in cotton and have since added manmade fiber products,” Shafran said.
“Today, we have capacity to produce more than 16 million pieces per year.” Faze Three is said to have the largest capacity of rubber-backed synthetic fiber bath rugs in India.
The company also manufacturers other home textiles products, including blankets, bedding, decorative pillows, kitchen textiles, window coverings, “and anything that uses woven fabrics.”
Faze Three will include new products from its Pana acquisition at Heimtextil in Germany in January and at the New York winter market in February.