PDS Limited subsidiary Norlanka acquires stake in Nobleswear to enhance children’s wear portfolio

PDS Limited has announced a significant development in its global expansion efforts. Its subsidiary, Norlanka Manufacturing Limited, is acquiring a 26% stake in Nobleswear Private Limited, a specialized manufacturer of children’s wear products based in Sri Lanka. This strategic move marks a pivotal milestone in PDS’s strategy to broaden its manufacturing footprint, emphasizing its commitment to innovation and excellence in the global fashion industry.

Nobleswear: A Trusted Partner in Children’s Wear

Nobleswear has established itself as a reliable partner for top apparel brands, delivering high-quality children’s wear products with a focus on innovation, sustainability, and trendsetting designs. The company has achieved significant growth, with its topline more than doubling over the last three years, and reporting a bottom line profit of approximately 8% in FY23.

Strategic Expansion: PDS Limited and Norlanka Manufacturing Enter Sri Lankan Market with Nobleswear Investment

Strategic Options and Long-Term Vision

Norlanka reserves the right to acquire an additional 24% stake at the same valuation over the next three years, positioning it to further consolidate its presence and actively participate in the partnership’s growth trajectory. Pallak Seth, Executive Vice Chairman at PDS, expressed excitement about the acquisition, highlighting its alignment with PDS’s vision to expand beyond Bangladesh and drive growth in the competitive fashion industry.

Commitment to Ethical Practices and Efficiency

Sanjay Jain, Group CEO of PDS, emphasized the acquisition’s alignment with the company’s core values and asset-light business model, aiming to optimize the newly acquired manufacturing asset. The partnership with Nobleswear aligns with PDS’s strategy to enhance efficiency and drive sustained growth.

Enhancing Operational Capabilities and Client Base

Chandana Ranatunga, CEO of Norlanka, noted that this strategic move expands their portfolio, enhances operational capabilities, and broadens their customer base. Both Norlanka and Nobleswear are committed to upholding high standards of ethical business practices, sustainability, and social responsibility, prioritizing the well-being of employees, local communities, and the environment.

Financial and Transaction Details

The investment involves subscribing to shares in Nobleswear and making a primary infusion of capital. The transaction, subject to customary conditions, involves the following key financials:

– Nobleswear FY23 Revenue: ₹138 cr

– Norlanka FY23 Revenue: ₹830 cr

– Transaction Value: ₹8.7 cr

This acquisition marks a significant step for PDS Limited in diversifying its offerings in the children’s wear segment and expanding its comprehensive fashion solutions portfolio.