PDS expands its manufacturing footprint in Sri Lanka

Its subsidiary, Norlanka Manufacturing, is acquiring a 26% stake in Nobleswear,

PDS announces a strategic development in its global expansion efforts. Its subsidiary, Norlanka Manufacturing, is acquiring a 26% stake in Nobleswear. Nobleswear is a Sri Lanka-based specialised manufacturer of children’s wear products, offering development to finished product solutions for world- renowned top apparel brands.

This move is a pivotal milestone in PDS’s strategy to broaden its manufacturing footprint in key locations, emphasising its commitment to innovation, collaboration, and excellence in the global fashion industry. The acquisition further solidifies PDS’s foothold in the children’s wear segment and expands its comprehensive fashion solutions portfolio.

Nobleswear has established itself as a trusted partner for top apparel brands, delivering high-quality children’s wear products with a focus on innovation, sustainability, and trendsetting designs. Nobles clocked a topline of Rs 138 crore, which has more than doubled over the last 3 years, with a bottom line profit of c.8% in FY23.

Norlanka reserves the right to acquire an additional 24% stake at the same valuation over the next three years. This strategic option positions Norlanka to further consolidate its position and actively participate in the growth trajectory of the partnership, underscoring our commitment to long-term collaboration and value creation.

“We are thrilled to announce the acquisition of a 26% stake in Nobleswear,” said Pallak Seth, Executive Vice Chairman at PDS. “This strategic move aligns with our vision to expand our manufacturing footprint beyond Bangladesh. By combining Norlanka’s manufacturing capabilities and PDS’ global network with Nobleswear’s expertise in children’s wear, the partnership aims to deliver unparalleled value to customers and drive growth in the highly competitive fashion industry.”

“The foundation of this acquisition is deeply rooted in our core values, particularly our commitment to maintaining an asset-light business model. Consistent with our ongoing operations, our strategic intent is to optimize this newly acquired manufacturing asset to unlock myriad sourcing opportunities, echoing the successful models we have established in Bangladesh and Sri Lanka through our existing manufacturing facilities. PDS propels a Rs 10,000 crore plus sourcing business on the back of Rs 700 crore manufacturing operations. This approach aligns with our overarching strategy to enhance efficiency, and drive sustained growth,” said Sanjay Jain, Group CEO of PDS.

Chandana Ranatunga, CEO of Norlankaadded, “This strategic move not only expands our portfolio, enhances our operational capabilities but expands our customer base. We are excited about the potential synergies between Norlanka and Nobleswear, leveraging our combined strengths to deliver unparalleled value to our clients. The acquisition aligns with our commitment to excellence in manufacturing and innovation.”

The investment in Nobleswear involves subscribing to shares in the company and making a primary infusion of capital.