Indian garment exporter Pearl Global Industries Limited (PGIL) has declared a significant strategic expansion into Guatemala, acquiring a majority 55% stake in Pearl GT Holdco Ltd. for $550,000.

The venture aims to exploit the manufacturing and trading capabilities of Guatemalan companies Shoretex Sociedad Anonima (Shoretex) and Corporacion de Productos y Servicios Asociados, Sociedad Anonima (Corpasa), advancing PGIL’s position in the global garment industry.

Presently owned by Guatemalan residents, Shoretex and Corpasa collectively generate an annual revenue of $3.8 million operating over three lines. Following the acquisition, Pearl GT Holdco Ltd is set to invest up to $2 million to expand capacities across 12 lines, projecting an annual revenue growth to $20 million.

The acquisition marks Pearl Global Industries’ strategic move into near shore manufacturing, enabling the company to meet the fast-evolving needs of its customers post-pandemic, particularly focusing on speed and inventory control. Emphasizing Guatemala’s stable business environment and its membership in the Central America Free Trade Agreement (CAFTA), the venture is expected to tap into duty-free benefits.

Pulkit Seth — Pearl Global Industries Group Vice Chairman said: “We are excited to announce our acquisition of a 55% stake in Pearl GT Holdco Ltd, signalling our commitment to diversifying our manufacturing capabilities and expanding our reach…By entering the Central America region, we are seizing near shore manufacturing opportunities that align with our customers’ needs, particularly in the post-pandemic era.”

The announcement indicates Pearl Global Industries’ strategic growth initiatives in response to the vulnerabilities exposed by the COVID-19 pandemic in longer transit countries, thereby strengthening its presence in three of the four major sourcing bases worldwide.

  Guatemala, Pearl Global Industries, Pearl GT Holdco, Pulkit Seth