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Leading socks manufacturer Filatex Fashions Limited (FFL) is expanding to add more capacity and buying stake in a Sri Lankan company.
Its stake in Sri Lankan apparel manufacturing company Isabella Private Ltd. is about US $ 7.55 million (around Rs 60.40 crore).
The company, having present capacity of 7 million socks a year, is in the process of expanding its capacity to produce 30 million socks per year and is investing about Rs. 350 crore for expansion plans. It also includes entering into track suits and T-shirts segment.
The company will install 500 machines for socks manufacturing and around 1,700 workers are hired to execute the expansion plans.
The acquisition would give access to Indian socks in some European markets where Isabella has operations. The whole process is expected to be complete in the next two months.
Leading business daily Business Line quoted Prabhat Sethia, MD, FFL, “The company will go for a preferential issue to part fund the acquisition. We will use internal accruals to meet the total fund requirements.”
The company is planning to raise paid-up capital to Rs. 250 crore from Rs. 48 crore by way of preferential allotment of shares at various price bands. This will enable it to raise about Rs. 400 crore.
