S.P. Apparels Invests Rs 43.5 Crore in Sri Lankan Subsidiary for Strategic Expansion

SP Apparels Limited, a prominent player in the garment manufacturing sector, has made a significant move to bolster its international presence. The company has invested Rs 43,508,668 (approximately Rs 4.35 crore) as equity in its wholly-owned subsidiary, S.P. Apparels International Private Limited (SPAIPL), based in Sri Lanka.

Investment Details

Aspect	Details
Investment Amount	Rs 43,508,668 (USD 490,000)
Subsidiary	S.P. Apparels International Private Limited (SPAIPL)
Ownership	100% wholly-owned subsidiary
Transaction Type	Cash consideration
Subsidiary Location	Sri Lanka
Subsidiary's Business	Garment manufacturing
Subsidiary's Turnover	1,872,585 LKR

Strategic Implications

The investment, which represents a 100% cash consideration transaction, is aimed at expanding S.P. Apparels' business operations. The company cited strategic advantages and cost-effective manufacturing circumstances as key drivers behind this decision.

Corporate Governance and Disclosure

This transaction falls under the category of a related party transaction. It's noteworthy that 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.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, S.P. Apparels has duly informed the Bombay Stock Exchange and the National Stock Exchange of India about this investment.

Outlook

This strategic investment underscores S.P. Apparels' commitment to expanding its global footprint and optimizing its manufacturing capabilities. By leveraging Sri Lanka's garment industry infrastructure, the company aims to enhance its competitive position in the international market.

As the textile and apparel industry continues to evolve, such strategic moves could play a crucial role in shaping the company's future growth trajectory and market positioning.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.38%	-8.95%	-3.06%	-20.20%	-28.57%	+431.66%

SP Apparels Limited, a prominent player in the apparel industry, has announced significant changes to its board composition, including re-appointments and new additions to its leadership team.

Key Board Changes

The company's board has approved several important leadership changes:

Re-appointments

P. Sundararajan has been re-appointed as Managing Director for a five-year term starting November 21, 2020.
S. Latha has been re-appointed as Executive Director for five years, effective from August 16, 2021.
A.S. Anand Kumar has been re-appointed as Independent Director for another five-year term beginning November 13, 2020.

New Appointments

C.R. Rajagopal and H. Lakshmi Priya have been appointed as new Independent Directors, each for a five-year term commencing September 2, 2020.

Retirement

P. Yesuthasen has retired from his position as Independent Director after completing his five-year term on August 28, 2020.

Remuneration Details

The board has also approved remuneration packages for the executive positions:

Position	Annual Remuneration
Managing Director	Rs. 12.00 crore
Executive Director	Rs. 7.20 crore

Independent Directors will be compensated through sitting fees only.

Shareholder Approval

It's important to note that all these appointments and re-appointments are subject to shareholder approval, underlining the company's commitment to corporate governance and transparency.

These board changes reflect SP Apparels' focus on maintaining strong leadership while also bringing in fresh perspectives. The mix of re-appointments and new additions suggests a balance between continuity and innovation in the company's governance structure.

As SP Apparels navigates the dynamic apparel industry, these leadership changes may play a crucial role in shaping the company's strategic direction and operational excellence in the coming years.