SP Apparels acquires spinning mill

Coimbatore: S. P. Apparels Ltd (SPAL), a Coimbatore-based fully integrated garment exporter and retailer, has acquired Sri Balaji Bakiam Spinning Mill having 12,672 spindles capacity at Vazhapady near Salem.

The newly acquired unit, which would become a 100 per cent subsidiary of SPAL, will result in the addition of Rs 11 crore to the company’s topline, an increase of 4 per cent.

Mr P. Sundararajan, Managing Director, SPAL, said in a press release that with its entry into spinning, SPAL has become a “fully integrated textile company” with operations ranging from spinning to retail and fibre to fashion. SPAL, which had originally planned to establish a spinning mill as part of its expansion programme, seized the opportunity to take over a newly commissioned spinning mill.

He said the mill will meet 10 per cent of SPAL’s current yarn requirements. The cost of acquisition estimated to be around Rs 26 crore would be partly funded through internal accruals and taking over of the bank liabilities. The new unit, which started full production from April 2007, has around 150 employees, who will be retained.