SP Apparels to Acquire Bannari Amman Group’s Textile Business
05 January 2024: SP Apparels Ltd. (SPAL) has announced acquisition of Textile Business of renowned Bannari Amman Group. A definitive agreement has been reached for purchase of key assets, including Young Brand Apparel (P) Ltd., a subsidiary of Bannari Amman Spinning Mills Ltd.
Bannari Amman Spinning Mills will transfer the leasehold rights of a Garment Unit at Palladam Hi-Tech Weaving Park, along with 6.43 acres of land and a building at SIPCOT, Perundurai, to SP Apparels. With this acquisition, SP Apparel will gain access to manufacturing and export capabilities of Young Brand Apparel, a company known for its expertise in the intimate wear market segment.
Young Brand Apparels (P) Ltd. (YBAPL) operates as a joint venture between Jacob Industries (USA) LLC, Intimark of Mexico and Bannari Amman Spinning Mills Ltd. Situated on a sprawling 26-acre site on outskirts of Chennai, YBAPL boasts a state-of-the-art manufacturing facility spanning 280,000 sq. ft. The company’s acquisition is expected to provide significant support and synergies to SP Apparel’s core business, particularly in terms of expanding its customer base.
SP Apparels Ltd. is a leading exporter of apparel in the industry, with a strong focus on sustainability. The company operates an extensive network of factories and serves as a comprehensive sourcing, manufacturing, and supply chain platform. It has carved a niche in the children and kids’ wear market segment and has witnessed substantial revenue growth. In fiscal year 2022-23, SPAL achieved a total revenue of Rs.9623.20 Mn, a significant increase from Rs.7764.21 Mn in FY 2021-22.
On the other hand, Bannari Amman Spinning Mills has been primarily engaged in manufacturing and marketing of Cotton Yarn, Woven and Knitted fabrics, Home Textiles, Knitted Garments and fabric processing. The company operates two spinning units in Dindigul, Tamil Nadu, with an installed capacity of 145,440 spindles. Additionally, it has Weaving and Home Textiles units at Karanampettai near Palladam, a Processing unit at SIPCOT, Perundurai, a Knitting unit at Karanampettal near Palladam, Garment units at Palladam Hi-Tech Weaving Park and 27 Windmills for captive consumption.
Ccquisition of Bannari Amman Group’s Textile Business marks a strategic leap forward for SP Apparels Limited, positioning the company for further growth and expansion into new segments of the textile industry. With an enhanced customer base and increased manufacturing capabilities, SP Apparels is poised to solidify its position as a leading player in the apparel sector.
