SP Apparels Plans Foray Into Sri Lanka With Asset Light Model
Coimbatore based garment exporter SP Apparels Ltd is planning to start operations in Sri Lanka and to do so, is identifying various operational garment factories in the island country.
In a BSE filing, the garment maker said, “We are pursuing to set up a company in Sri Lanka which will help us to expand our capacities in Sri Lanka in addition to our existing efforts to increase the existing setup.”
“But this model will be asset light model, which will allow us to expand our capacities as much as possible in Sri Lanka,” the filing added.
“Garment factories are idle for the month of August, and this is the right time for the company, when the factories are already running with full workforce, since finding workforce is as challengeable as in India,” CMD Sundararajan said while speaking with analysts when discussing first quarter results.
The company is also in the process of growing its capacities in the woven garment sector and is on the lookout to add more capacity in this segment by looking at some woven garment factories.
Meanwhile, the Coimbatore headquartered company, reported a 42 percent year on year drop in net profit to Rs 15 crore for the first quarter ended June 30, 2023, while revenues declined 4 percent from a year ago quarter, to Rs 245 crore.
