A leading manufacturer and exporter of infantwearand childrenswear, SP Apparels Ltd. is planning to list its recently carved out retail arm.
The Avinashi (Tamil Nadu)-based company has hived off its retail division into a separate company, SP Retail Ventures Ltd.
A report of The Hindu Business Line quoted P Sundararajan, CMD of the company,“We have also added one more brand, an international brand that is well known for skiing. It has given license to SP Retail Ventures to manufacture and sell apparel and footwear in India under the brand ‘Head’. This brand comes under the athleisure segment.”
The Rs. 867 crore company has set up 59 stores under all brands. In the June 2022 quarter, SP Retail Ventures clocked revenue of Rs. 17.1 crore and a positive EBITDA of Rs. 50 lakh. However, it reported a loss of Rs. 40 lakh.
The company’s apparel export division has contributed 88 per cent of the revenues now and it had an order book of about Rs. 400 crore as of the June 2022 quarter. The company is in the process of adding two more clients.
Regarding the international market, he said that there were diversions of some orders from Bangladesh to India due to certain prevailing issues there.
“Suddenly this time, buyers want to divert some of the business from Bangladesh for two reasons. First is the sharp increase in orders to Bangladesh, which is too risky for them. Secondly, there are the raw material costs, the power problems and uncertainties in deliveries. These are big concerns for the buyers. So, they want to trade with a safer country and they prefer India. We are even getting some regular orders that are supposed to be produced in Bangladesh,” he said.
