M. Soundariya Preetha
To invest Rs. 25 cr. towards acquisition
COIMBATORE: S.P. Apparels Limited, a garment exporting unit here, has acquired 60.14 per cent shareholding (which was held by Shivrams Associates Private Limited, Coimbatore) in Crocodile Products Private Limited (Crocodile India). The Managing Director of S.P. Apparels, P. Sundar Rajan, told The Hindu that the company planned to open 30 company-owned outlets in two years and increase the number of galleries (franchisees) to 150 from 56. The aim was to increase CPPL's turnover to Rs. 100 crore in five years. "We had this plan to enter the domestic market for the last three or four years. We were looking out for a brand that we can acquire."
The company would invest Rs. 25 crore in phases towards acquisition, distribution and store and brand development.
With this acquisition, about 10 per cent of production from S.P. Apparels would be destined for the domestic market, he said.
S.P. Apparels already had a design studio that would help develop products for the Indian market with international design and quality standards.
He said the company planned to go in for a 25,000 spindle mill that would be ready by 2007-end and another 25,000 spindles by mid-2008. It would expand its knitting, printing and embroidery capacity too. A processing plant had been commissioned in Perundurai with a capacity of 12 tonnes of fabric a day.