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PDS subsidiary, Norlanka, acquires 26% stake in Nobleswear, expanding manufacturing presence in Sri Lanka

PDS Limited, a global player in the fashion industry, is marking a significant stride in its expansion strategy with the announcement that its subsidiary, Norlanka Manufacturing Limited, is set to acquire a substantial 26% stake in Nobleswear Private Limited, a specialized manufacturer of children’s wear products based in Sri Lanka, the company announced in a release.

Nobleswear is renowned for providing end-to-end solutions for some of the world’s top apparel brands, from product development to the finished garment. The strategic move is integral to PDS’s broader vision of strengthening its manufacturing footprint in key locations, demonstrating a steadfast commitment to innovation, collaboration, and excellence within the global fashion sector.

This strategic partnership not only solidifies PDS’s presence in the children’s wear segment but also diversifies its comprehensive fashion solutions portfolio. Nobleswear, recognized as a trusted partner for top apparel brands, has seen a remarkable growth trajectory with a topline of approximately ₹138cr, more than doubling over the last three years. In FY23, it achieved a bottom-line profit of around 8%.

As part of the agreement, Norlanka can acquire an additional 24% stake at the same valuation over the next three years. This strategic provision positions Norlanka to actively engage in the growth trajectory of the partnership, emphasizing a commitment to long-term collaboration and value creation.

Pallak Seth, Executive Vice Chairman at PDS, expressed enthusiasm about the acquisition, stating, “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.”

Sanjay Jain, Group CEO of PDS, highlighted, “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 10,000cr plus sourcing business on the back of Rs 700cr manufacturing operations. This approach aligns with our overarching strategy to enhance efficiency, and drive sustained growth,” Jain added.

Chandana Ranatunga, CEO of Norlanka, added, “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. Norlanka and Nobleswear are committed to upholding the highest standards of ethical business practices, sustainability, and social responsibility as part of the acquisition. The partnership will prioritize the well-being of employees, local communities, and the environment, the release added.

About PDS Limited
PDS Limited is a global fashion infrastructure platform offering product development, sourcing, manufacturing, and distribution for major brands and retailers worldwide handling over US $ 2 billion of Gross Merchandise Value. The Company operates a vast global network covering over 60 offices in 22 countries, with over 10,000 employees and factory associates worldwide. PDS also offers a bespoke end-to-end outsourcing solution, engaging dedicated talent and infrastructure as an extended arm of retailers and brands. The Company reported consolidated revenues of Rs 10,577 crore in FY23.

About Norlanka
Norlanka is one of Sri Lanka’s leading sustainable exporters of baby and kids’ wear in Sri Lanka, catering to over 20 international fashion brands and retailers and works closely with over 35 partner factories across Sri Lanka. Its diverse product portfolio also consists of activewear, casual wear, and athleisure. Its global clients include Primark, Matalan, Walmart, Superdry, George and many others. Norlanka’s manufacturing capacity is backed by 6000 machines with a total of eight million production hours annually. In the second phase, the CCP will double its capacity in line with the vision of PDS to double its manufacturing capacity over the next 3 years in Sri Lanka.

About Nobleswear Private Limited
Nobleswear Private Limited is a specialized manufacturer of children’s wear products, offering development to finished product solutions for world-renowned top apparel brands. Although the factories specialize in children’s wear, Nobleswear has also earned a reputation for casual wear and cooperative wear products for high-end fashion brands. Nobles ensures that quality, ethical manufacturing, and sustainability remain the cornerstones of its mission. With three state-of-the-art factories around Sri Lanka, Nobles caters to a worldwide clientele spurring the mission to transform the textile industry.

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