SP Apparels acquires Jockey, M&S intimate wear maker Young Brand Apparel

This acquisition of YBAPL will bring in additional revenue up to Rs 400 crore for FY25 for SPAL.

SP Apparels Limited (SPAL), an garment manufacturer and exporter, has signed an agreement to acquire a 100 percent stake in Young Brand Apparel Private Limited (YBAPL), which makes intimate wear for Jockey and M&S,

SPAL will also acquire the garment unit of Bannari Amman Spinning Mills, the parent company of which Young Brand, in Tamil Nadu's Palladam and a land parcel situated in State Industries Promotion Corporation of Tamil Nadu (SIPCOT ) for Rs 223 crore, the company said in a release.

These acquisitions will help SP Apparels to expand into new intimate wear segment. The acquisition of YBAPL would ill bring in additional revenue up of to Rs 400 crore in FY25 for SPAL, the company said.

"YBAPL will improve the cross-sell synergy in terms of customer base and product offerings, as we are working towards further penetrating the US market. The acquisition will not only strengthen our export spread but also lay a strong foundation for sustainable and resilient business growth for us,” SPAL chairman and managing director P Sundararajan said.

It was strategically important acquisition in line with the company's vision to diversify into other textile and apparel categories, further strengthen its export basket, market presence and build a more broad-based business model.

YBAPL was a prominent name in the intimate wear manufacturing segment with a robust presence in key global markets and strong manufacturing capacity. The company was scaling up its business in markets like the US and the UK, he said.

YBAPL manufactures inner wear for brands like American Eagle, Jockey International, Marks & Spencer and Benetton. The company exports to countries like the US, the UK, Japan, and Canada.

YBAPL reported a revenue of Rs. 329 crore for the financial year ended on March 31, 2023.

At 1.02 pm, SP Apparels was trading at Rs 599.15,  1.59 percent from the previous close.