MAS Holdings forms joint venture with BAM Knitting in Sri Lanka

Sri Lanka’s MAS Holdings has taken the majority stake in BAM Knitting (Pvt.) Ltd., a leading fabric manufacturing and finishing operation in the country, and formed a new joint venture.

This investment is said to be further enhancing MAS’ capabilities in the knitting, dyeing and printing space for cotton fabrics and expanding its backward vertical integration in the island.

The new joint venture will benefit from the technical resources and expertise of MAS, following the appointment of MAS specialists to key roles in the company, as well as MAS’ vast global experience in apparel and textile manufacturing.

According to the company, significant synergies are expected from the acquisition, including production capacity enhancements and collaborations on new product developments.

“This acquisition is timely, both from the perspective of MAS and the Sri Lankan economy,” said Suren Fernando, CEO of MAS Holdings, adding, “It enables MAS to increase the verticality of our Sri Lankan operations and mitigates the increasing volatility of global supply chains and costs of logistics while increasing the overall value added by MAS. It also highlights our continued confidence in Sri Lanka as a sustainable and competitive destination for apparel manufacturing, despite the ongoing economic challenges.”

Fernando further stated that initiatives of such nature are critical in ensuring the country’s long-term economic resilience and stability by helping to reduce its imports and strengthen exports.

Amandha Fernando, the CEO of BAM Knitting, who will be at the helm of the new organisation, mentioned, “The acquisition by MAS will undoubtedly elevate the capabilities that were developed at BAM, and MAS’ lean manufacturing processes, product development expertise and the strong people-centric ethos will surely transform the existing operation into a truly world-class business.”

The investment is reported to be a part of MAS’ strategy to further strengthen operations in Sri Lanka, from where the company sources 50 per cent of its raw material requirement, as a key hub for complex apparel products.