February 6, 2025
Corporates

PDS Expands Manufacturing Footprint In India

PDS has achieved a significant milestone in its expansion strategy with the acquisition of a 55% stake in Knit Gallery India Pvt Ltd (KGIPL), enhancing its sourcing footprint and leveraging India’s strategic role in the global textile and fashion industry.

Knit Gallery, established in 2001, is a Tirupur-based manufacturer and exporter specializing in high-quality apparel, including baby wear, children’s wear, nightwear, and innerwear. With 14 manufacturing units and an annual production capacity exceeding 40 million pieces, KGIPL serves markets in Germany, the US, and the UK.

The acquisition aligns with PDS’s strategy to diversify sourcing locations and mitigate geopolitical disruptions. By expanding its manufacturing capabilities in India, PDS aims to tap into new customers, increase sourcing volumes, and fortify its operations in key global markets. PDS is acquiring a 55% stake in KGIPL for an equity consideration of Rs 41 crore, subject to due diligence and documentation. Additionally, part of Knit Gallery’s business will be transferred to KGIPL for Rs 34 crore, payable over three years based on the achievement of pre-defined targets. The combined business recorded Rs 288 crore in revenue for FY24, with an EBITDA of Rs 36 crore. The transaction is expected to be completed by May 2025.

Pallak Seth, Executive Vice Chairman of PDS, stated, “This acquisition marks a key milestone in strengthening our manufacturing capabilities in India, enabling us to drive greater sourcing opportunities. Our advanced manufacturing facilities in Bangladesh and Sri Lanka, coupled with our commitment to sustainability and compliance, complement this strategic move. This addition bolsters our garment manufacturing expertise and supports the Make in India initiative.”

Sanjay Jain, Group CEO of PDS, shared, “The acquisition of Knit Gallery India Pvt Ltd is a pivotal step in strengthening our manufacturing base in India and enhancing our sourcing capabilities. We continue to focus on cost optimization and operational efficiencies in collaboration with BCG, positioning us for long-term success.”

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