PDSMFL (BSE:538730) to source for s.Oliver from India, Sri Lanka

“It is the beginning of a new kind of journey in the apparel sector,” PDSMFL Group CEO Sanjay Jain told Fibre2Fashion. “Similar to what happened in the IT sector many years back, this is a strategic step in the right direction for apparel sector in India and Sri Lanka.”

As per the deal, PDSMFL’s subsidiary company Techno Design GmbH will acquire s.Oliver Group’s sourcing operations in India and shall exclusively source textiles in India and Sri Lanka for the s.Oliver Group.

s.Oliver choosing a partner to source exclusively from India reflects, according to Jain, their commitment to source from India and Sri Lanka. “It is also an indication that more global companies are diverting their sourcing needs to South Asia, and primarily to India and Sri Lanka. There is potential (in India and Sri Lanka) and it should be carefully harnessed and converted to real strategic sourcing deals. This transaction is a beginning in that direction and expect many more such partnerships in the near future.

“This partnership has the potential to translate into an annualised c.$50 million (c.₹375 crore) sourcing opportunity,” he added.

In a separate statement, PDSMFL vice chairman Pallak Seth said, “Through this strategic partnership, PDS will further strengthen its existing sourcing from India and leverage the capacities and capabilities of Indian apparel manufacturers to seamlessly service global brands.”

The agreement was signed by Rajive Ranjan, managing director, Techno Design GmbH and Technocian Fashions Private Limited (an associated company of Techno Design) and Oliver Hein, COO, s.Oliver Group.

Fibre2Fashion News Desk (RKS)