SP Apparels to raise Rs 100 crore for expansion of retail business
19 September 2024, Mumbai
A garment company based in Avinashi, Tiruppur, SP Apparels aims to raiseRs100 crore through private equity to fund the expansion of its retail business. The company also plans to terminate its licensing agreement with Austrian brand ‘Head,’ effective December 2024.
S Chenduran, Joint Managing Director, SP Apparels states, the raised funds will be used to support the growth of their UK-based premium kidswear brand, Angel & Rocket. The company will focus on expanding the brand's presence in India and the GCC (Gulf Cooperation Council) region.
SP Apparels also plans to exit the licensing agreement with the leading tennis and ski equipment brand Head, which it entered into in the year 2020 for sportswear and footwear. Moving forward, this exit is expected to have a positive impact on SP Retail Ventures SP Apparels manufactures and exports knitted garments besides producing men’s wear under the brand ‘Crocodile’ in India. According to the company’s 2023-24 annual report, the retail sector faced challenges during the year due to inflation and rising interest rates, which put pressure on the industry.
For the fiscal year ending Mar 31, 2024, SP Apparels’ revenues increased to Rs 964 crore from Rs 962 crore the previous year. The company’s net profit rose to Rs 104 crore from Rs 92 crore.
The report also highlights the potential for significant growth in India’s apparel retail sector, which is projected to reach a value of $89,219 million by 2027, growing at a compound annual growth rate of 8.3 percent. This growth is driven by the increasing presence of international brands such as Hugo Boss, Diesel, and Kanz entering the Indian market, along with a rise in disposable income and consumer demand for sustainable fashion.
