PDS Limited expands manufacturing footprint in Sri Lanka with Nobleswear stake acquisition

PDS Limited’s subsidiary Norlanka Manufacturing Limited is acquiring a 26% stake in Sri Lanka-based children’s wear manufacturer Nobleswear Private Limited. The business aims to solidify its foothold in the children’s wear segment and broaden its manufacturing footprint.

“We are thrilled to announce the acquisition of a 26% stake in Nobleswear Private Limited,” said PDS Limited’s executive vice chairman Pallak Seth in a press release. “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.”
 
The business’ investment in Nobleswear involves subscription to shares in the company as well as making a primary infusion of capital. Over the coming three years, Norlanka reserves the right to acquire an additional 24% stake in Nobleswear at the same valuation. 

“The foundation of this acquisition is deeply rooted in our core values, particularly our commitment to maintaining an asset-light business model,” said PDS Limited’s group CEO Sanjay Jain. “Consistent with our ongoing operations, our strategic intent is to optimise 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 10,000 crore plus sourcing business on the back of c.Rs 700 crore manufacturing operations. This approach aligns with our overarching strategy to enhance efficiency and drive sustained growth.”
 
Nobleswear reported a top-line of Rs 138 crore in the 2023 financial year with a bottom-line profit of around 8%. The business’ top-line has more than doubled over the past three years. 
 
“This strategic move not only expands our portfolio, enhances our operational capabilities but expands our customer base,” said Norlanka’s CEO Chandana Ranatunga. “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.”