Filatex Fashions to pick up majority stake in Sri Lankan apparel firm Isabella
Filatex Fashions Limited (FFL) has picked up 51 percent stake in Sri Lankan apparel manufacturing company Isabella (Private) Ltd for $7.5 million (Rs 60 crore).
The company is currently doing its due diligence and expects to complete the acquisition process in the next two months.
Isabella is the second largest manufacturer of socks and tights in South Asia, with an annual capacity of 48 million pairs. With this strategic acquisition, Filatex will gain access to some European Markets where Isabella has operations.
The company is also in the process of expanding its capacity to produce 30 million socks a year from the present capacity of 7 million.
Commenting on the expansion, Prabhat Sethia, managing director of FFL in a statement said, “Filatex Fashions Limited is planning for expansion of its production facility and in the process will make a capex of around Rs 300 crore in next one and a half year which include foraying into track suits and t-shirts.”
“The company expects to create an additional workforce of more than 1000 people from the expansion process. We expect an additional turnover of around Rs 400 crore from the expanded facilities,” he added.
During the recently concluded second quarter, Filatex reported a net profit of Rs 4.5 crore on a revenue of Rs 44 crore.
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