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PDS to Acquire a 55% Stake in Knit Gallery For Expansion

Written by: Team Angel OneUpdated on: Jan 29, 2025, 3:17 PM IST
PDS has marked a strategic milestone in its expansion efforts by acquiring a 55% stake in Knit Gallery India Pvt Ltd (KGIPL).
PDS to Acquire a 55% Stake in Knit Gallery For Expansion
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PDS Limited, a globally renowned fashion powerhouse headquartered in India, continues to cement its position as an industry leader in product development, sourcing, manufacturing, and supply chain solutions for premier fashion retailers and brands worldwide. 

In a bold move underscoring its ambitions for growth and diversification, PDS has announced the acquisition of a 55% stake in Tirupur-based Knit Gallery India Pvt Ltd (KGIPL). This strategic investment exemplifies PDS’s intent to harness India’s burgeoning potential within the global fashion and textile landscape.

The deal involves an equity consideration of ₹41 crore, subject to customary due diligence and documentation. Additionally, the transaction includes the transfer of a segment of Knit Gallery’s existing business to KGIPL for a Business Transfer Consideration of ₹34 crore, payable over three years from KGIPL’s cash flows contingent on achieving pre-defined performance targets.

PDS Limited Q3 FY25 Results

PDS Limited delivered a robust topline of ₹9,052 crore in 9M FY25, reflecting 26% YoY growth, with North America driving expansion at 70%. Over the past four years, gross margins have risen by 4%, highlighting the company’s focus on enhancing its “Solutions & Services” portfolio. With a healthy $425 million order book, PDS remains well-positioned for sustained growth and global opportunities.

Founded in 2001, Knit Gallery is a distinguished manufacturer and exporter of premium apparel based in Tirupur, Tamil Nadu. The company boasts expertise in crafting high-quality babywear, children’s wear, nightwear, and innerwear. 

Executive Vice Chairman’s Statement

Pallak Seth, Executive Vice Chairman of PDS Limited, described the acquisition as a transformative step in strengthening the company’s manufacturing capabilities in India while unlocking new sourcing opportunities. He highlighted PDS’s commitment to sustainability and compliance through its facilities in Bangladesh and Sri Lanka, reaffirming its support for the ‘Make in India’ initiative and advancing sustainable fashion manufacturing.

Share Price Performance 

At 2:21 PM today, PDS Limited shares traded at ₹489.20 per share on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jan 29, 2025, 3:17 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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