NewsCorporate ActionsS.P Apparels Invests ₹4.35 Crore in Wholly Owned Subsidiary for Business ExpansionS.P Apparels Invests ₹4.35 Crore in Wholly Owned Subsidiary for Business Expansion
S.P Apparels Limited has invested ₹4.35 crore (USD 490,000) in its wholly owned subsidiary, S.P Apparels International Private Limited (SPAIPL) in Sri Lanka. The equity investment aims to expand business operations and leverage cost-effective manufacturing opportunities. SPAIPL, incorporated in 2023, is engaged in garment manufacturing. The transaction is classified as a related party transaction, with key executives of S.P Apparels serving as directors in SPAIPL.
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S.P Apparels Limited, a prominent player in the Indian apparel manufacturing sector, has announced a strategic investment of ₹4.35 crore in its wholly owned subsidiary, S.P Apparels International Private Limited (SPAIPL). This move is part of the company's efforts to expand its business operations and capitalize on cost-effective manufacturing opportunities.
Investment Details
The investment, made on November 8, 2025, involves the following key aspects:
| Particulars | Details |
|---|---|
| Investment Amount | ₹4,35,08,668 (USD 490,000) |
| Type of Investment | Equity |
| Subsidiary | S.P Apparels International Private Limited (SPAIPL) |
| Subsidiary Location | Sri Lanka |
| Shareholding | 100% (before and after investment) |
Strategic Rationale
The company cited several reasons for this investment:
- Business Expansion: The investment aims to enable S.P Apparels to expand its business operations.
- Strategic Advantages: The company sees potential strategic benefits in strengthening its presence in Sri Lanka.
- Cost-Effective Manufacturing: SPAIPL's location in Sri Lanka offers cost-effective manufacturing circumstances, which could potentially improve the group's overall operational efficiency.
About the Subsidiary
SPAIPL, incorporated on October 16, 2023, in Sri Lanka, is engaged in the business of manufacturing garments. As of March 2025, the subsidiary reported a turnover of 1,872,585 LKR.
Related Party Transaction
This investment falls under the category of a related party transaction. Mr. P. Sundararajan, Managing Director and Promoter, and Mr. S. Chenduran, Joint Managing Director and Promoter Group of S.P Apparels Limited, also serve as directors in SPAIPL.
This strategic move by S.P Apparels underscores the company's commitment to expanding its manufacturing capabilities and potentially enhancing its competitive position in the global apparel market.
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