PDS Ltd, a fashion supply chain company, plans to invest around Rs. 170-225 crore to expand its manufacturing operations in India and Egypt. It will help the company to grow its US business as it requires sourcing units closer to the West.
As per Mint, a leading business daily, Sanjay Jain, CEO of the company said, “We are not averse to committing say about Rs. 170-225 crore into manufacturing locations in Egypt and India. It could be spread between this calendar year and the next. I am not approaching it from an exposure diversification and risk mitigation perspective. I’m approaching this from an opportunity perspective.”
He further added that Egypt is attractive because to increase sales from the US market, where the US is about 15 per cent of the company’s top line right now, catering to US from the eastern part of the world, like Bangladesh versus catering to from the middle part of the world reduces the lead time plus there is a duty-free access Egypt has.
The company is also open to working with existing manufacturing facilities and helping them scale up, apart from making greenfield investments.
The company also now wants to have investments in one or two manufacturing units in India because of India’s attractiveness due to the Production-Linked Incentive (PLI) scheme, also in terms of FTA conversations that are underway with the UK as well.
