SP Apparels (SPAL), a prominent player in the apparel manufacturing and export industry, has sealed a significant deal to acquire 100 per cent ownership of Young Brand Apparel Private (YBAPL), a subsidiary of Bannari Amman Spinning Mills. Valued at Rs 223 crore, this strategic move underscores SPAL's ambition to broaden its product offerings and expand its market reach.

The acquisition involves SPAL acquiring a 51.3 per cent stake in YBAPL from Bannari Amman and committing to obtaining the remaining 49 per cent stake from joint venture partners. To finance this transaction, SPAL intends to utilize a combination of internal funds and external borrowing.

This deal not only allows SPAL to diversify its product range but also enhances its manufacturing capabilities with the inclusion of YBAPL's garment unit in Palladam and the additional land and building assets located at SIPCOT. These assets are poised to bolster SPAL's manufacturing capacity, laying a solid foundation for future growth and expansion initiatives.

Established in December 2006, YBAPL specializes in the production and export of Intimate Wear, catering to renowned brands such as American Eagle, Jockey International, Marks & Spencer, and Benetton. Its presence extends across key global markets including the US, UK, Japan, and Canada.

P Sundararajan, Chairman and Managing Director of SPAL, emphasized the strategic significance of the acquisition, noting its alignment with SPAL's vision to venture into diverse textile and apparel segments. He highlighted the potential synergies in terms of customer base and product offerings, particularly in penetrating the lucrative US market.

YBAPL's robust financial performance, with reported revenue of Rs 329 crore for the fiscal year ending March 31, 2023, further underscores the attractiveness of this acquisition for SPAL. This move not only strengthens SPAL's export portfolio but also sets the stage for sustainable and resilient business growth in the competitive global marketplace.