Coimbatore SP Apparels acquired Natalia
Fibre to fashion is the mantra that Coimbatore-based S P Apparels, an integrated garment retailer and exporter, is chanting. The company, which has acquired women’s western wear brand Natalia for an undisclosed sum, is keen to tap the growing market.“The acquisition of Natalia will help us to aggressively tap the immense potential in the women’s wear market in India. After a successful foray into the retail sector recently and establishing a strong presence in the men’s wear category, we are now gearing up to tap the women’s wear segment,” SP Apparels managing director P Sundarajan told newspersons. Noting that the acquisition will help the company gain a foothold in the branded segment, he said the brand will target women in the 20-35 age group. The company is envisaging a brand spend of Rs 5 crore to gain market share in the segment.
SP Apparels has recorded a topline of Rs 265 crore for the year ended March 2007. It registered a growth rate of 39% in export sales. The group, which forayed into the Indian retail market by acquiring Crocodile products, has already lined up nine company-owned stores besides the 50-odd franchisee-owned outlets. On its retail venture, Mr Sundarajan said the company is opening a series of retail outlets beginning September in Ahmedabad, Bangalore, Indore, Hyderabad, Kochi and Kolkata. He said the Rs 40 crore dyeing plant at the Perundurai SIPCOT industrial estate is up and running. “It will help the company to integrate backward its knitted garment manufacturing with its own dyeing facility besides strengthening its knitting, printing and garment units,” he added.
Earlier, New York Life Investment Management Fund picked up 10.71% equity in the company, which placed 18 lakh shares of Rs 200 a piece, aggregating Rs 36 crore with NYLIM India Funds. SP Apparels is also in the process of setting up a spinning unit with a capacity of 50,000 spindles, a knitting unit with 65 circular knitting machines and a renewable energy project (windmill) with a capacity of 10 MW. Planning to take up these projects in a phased manner, it would invest over Rs 200 crore in it.
