January 29, Mumbai
2025: PDS has released its Q3 and 9M FY25 financial results, which highlight the business’s consistent profitability and development. Additionally, PDS stated that it has acquired a 55% stake, marking a major milestone in its expansion plans. ownership interest in Knit Gallery India Pvt Ltd (KGIPL). This purchase demonstrates PDS’s commitment to broadening its sourcing network and taking use of India’s advantageous position in the fashion and textile sector to further its expansion goals.
Purchasing a fifty-five percent stake in Knit Gallery India:
Knit Gallery is a Tirupur-based clothing manufacturer and exporter that was founded in 2001. It specialises in premium clothing for infants, kids, nightwear, and innerwear. wear. KGIPL serves clients in Germany, the US, and the UK by running 14 manufacturing facilities, as well as warehouses and dormitories. The company can produce over 40 million items annually.
PDS’s strategic goal of handling geopolitical upheavals and diversifying sourcing sources is in line with its decision to expand its manufacturing capabilities to India. This action makes it possible to reach new clients, enhances our capacity to raise sourcing volumes in nations where we have a manufacturing presence and propels scale in India, guaranteeing growth and resilience in a changing global environment.
PDS is bolstering its position in this vibrant market as India emerges as a major worldwide centre for textile and apparel production, supporting the expansion and advancement of the sector. This feature represents not just our development but also our unrelenting dedication to quality, satisfying the industry’s always changing demands.
Subject to due research and paperwork, PDS is purchasing a 55% share in KGIPL for ₹41cr in equity consideration. A portion of Knit Gallery’s operations would be moved from its current company to KGIPL in exchange for a ₹34cr business transfer consideration, which will be paid from KGIPL cash flows over the course of three years, provided that predetermined goals are met. The total business hours around ₹288cr in FY24 with EBITDA of ₹36cr. It is anticipated that the deal would be finalised by May 2025.
Pallak Seth, Executive Vice Chairman, discussed the transaction, saying, “This acquisition represents a meaningful step in improving our manufacturing capabilities in India while leveraging it to drive greater sourcing opportunities.” Our cutting-edge manufacturing facilities in Bangladesh and Sri Lanka complement our solid sourcing basis, which maintain the greatest levels of compliance and sustainability. With this strategic addition, we are not only strengthening our garment manufacturing expertise but also reaffirming our commitment to the Make in India initiative and advancing the future of sustainable manufacturing.”
Combined Financial Results for Q3 and FY25:
PDS showed consistent growth momentum in FY25, reaching a topline of ₹9,052cr, which is a 26% year-over-year increase. While other areas kept up their upward trend, North America became a major force behind the strong expansion of About 70%. The company’s gross margin has increased by about 4% over the past four years, which is consistent with PDS’s strategic focus on increasing the scope of its “Solutions & Services” portfolio. PDS is still in a strong position for consistent success throughout the year because to its robust order book of $425 million.
“Our Q3 and 9M FY25 results highlight PDS’s ability to navigate a dynamic global landscape while maintaining strong growth momentum,” said Group CEO Sanjay Jain. An important turning point has been reached with the purchase of the majority of Knit Gallery India Pvt Ltd, enhancing our production capacity and securing India’s crucial position in our business.
Our commitment on growing sustainably is further strengthened by our partnership with BCG on cost optimisation and operational savings. With a solid order book of $425 million and significant growth in North America, we are still dedicated to promoting innovation, creating sustainable value, and strengthening operational synergies in order to provide our stakeholders with excellence.”