SP Apparels has taken a strategic leap with its recent investment to acquire the Textile Business of the Bannari Amman Group. A definitive agreement has been reached for the acquisition of key assets, including Young Brand Apparel Private, a subsidiary of Bannari Amman Spinning Mills Limited. As part of this transaction, 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.
Young Brand Apparels Private Limited (YBAPL) is a manufacturing and export company, operates as a strategic partner in the intimate wear market segment. A professionally managed Joint Venture between Jacob Industries (USA) LLC, Intimark of Mexico, and Bannari Amman Spinning Mills Limited, YBAPL boasts a strong customer base in the USA.
Operating on 26 acres of land with a 280,000 sq. ft. factory on the outskirts of Chennai, equipped with a state-of-the-art manufacturing facility and air-conditioned production floor, YBAPL’s acquisition is expected to enhance synergies in terms of customer base, providing substantial support to the core business of SP Apparels. SP Apparels Limited (SPAL) is one of the largest apparel exporters, SPAL is dedicated to shaping the future with a focus on sustainability.
Operating a vast network of factories, the company serves as a comprehensive sourcing, manufacturing, and supply chain platform, with a notable market presence in children and kids wear. In the 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. Bannari Amman Spinning Mills’ principal business involves the manufacturing and marketing of Cotton Yarn, Woven and Knitted fabrics, Home Textiles, Knitted Garments, and fabric processing. The company operates two spinning units near 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, with a capacity to process 5400 tonnes of fabric per annum, a Knitting unit at Karanampettai near Palladam with an installed capacity to produce 7200 tonnes of knitted fabric per annum, Garment units at Palladam Hi-tech Weaving Park, and 27 Windmills with an installed capacity of 23.40 MW green power, entirely utilized for captive consumption.
