S.P. Apparels Limited was incorporated in Avinashi, Tamil Nadu, a public limited company under Part IX of the Companies Act, 1956, pursuant to a certificate of incorporation dated November 18, 2005 issued by the Registrar of Companies, Tamil Nadu located at Coimbatore. They are the leading manufacturer and exporter of knitted garments for infants and children in India. These are manufactured at the integrated facilities that allow them to provide end-to-end garment manufacturing services from greige fabric to finished products. They also manufacture and retail menswear garments in India under the brand ‘Crocodile’. They believe their core competency lies in their clear understanding of the specifications of knitted garments in the infants and children category, the buying preferences of their customers and their ability to deliver products of a consistent high quality that meet the product specifications and stringent compliance requirements of their international customers. The company’s long-standing relationship with major customers has been one of the most significant factors contributing to their growth.
They also manufacture a broad range of menswear garments consisting of shirts, polo shirts, t-shirts, trousers, jeans, sweaters, jackets and men’s innerwear consisting of vests, briefs, boxer shorts and socks under the brand ‘Crocodile’ which is subsidiaries through an agreement with Crocodile International Pte Limited, Singapore. They mainly export their products to United Kingdom. During FY16, the company exported approximately 3.6 crore pieces of knitted garments for infants and children directly to its international customers, including TESCO and Primark.
SP Apparels operates 21 manufacturing facilities in and around the region of Avinashi in Tamil Nadu. Company has 4,874 sewing machines, eight cutting machines, 79 embroidery machines, 17 printing machines, 16,896 spindles and 22 dyeing machines.
Objects of the Issue
The proceeds from the fresh issue will be utilized towards the repayment or prepayment of debt incurred by the Company; Expansion and modernization of their manufacturing facility at Valapady, Salem, Tamil Nadu; Addition of balancing machineries for their existing dyeing unit at SIPCOT, Perundurai; Opening of new stores for the sale of ‘Crocodile’ products; and General corporate purposes.
- The Company’s long-standing relationship with their major customers has been one of the most significant factors contributing for the growth.
- Over the years, they have developed the expertise to concurrently manage multiple large orders as well as developed a diversified product range which has helped the company to grow into one of the leading manufacturers of knitted garments for infants and children in India.
- In addition to manufacturing of garments the company’s key strength is the ability to set-up and provides all necessary facilities at various units and efficiently manages such units from a centralized location that has helped them to efficiently scale-up their operations in a short period of time.
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