Earlier this year, global fashion infrastructure platform PDS Limited unveiled a centralised cutting plant in its Sri Lankan subsidiary Norlanka, in Malwana.
Executive Vice Chairman of PDS, Pallak Seth said, “We are planning to further expand our manufacturing footprint to include Egypt and India, while also exploring other strategic locations. Establishing a green field manufacturing plant is challenging, time-consuming and costly in the current context due to the challenges in finding manpower.
“Therefore, our models involve acquiring businesses by taking the majority stake and integrating them into the PDS Platform, allowing manufacturers access to our global network of designers and vendors.
“Sri Lanka is a great manufacturing destination that offers excellent quality and commendable health and safety standards, particularly for baby products and intimate wear,” he said.
In the world of global manufacturing, PDS views its subsidiary Norlanka as a success story, poised for remarkable growth. The Company aspires to achieve a staggering revenue of USD 120 Mn this year, with ambitions to double its business within the next 3-4 years.
PDS has several initiatives in the pipeline to reach this target. The Company recently invested in a manufacturing base in Trincomalee for babywear and partnered with a further two to three factories to enhance its capacity.
The company also set up a centralised cutting plant in close proximity to Colombo, opening capacity, adding value and creating further investment opportunities for vendors and customers.
“There are good apparel manufacturing facilities in Sri Lanka that are USD 10 to 50 mn in size, which have demonstrated governance, compliance and are future-ready,” stressed Seth.
“PDS is interested in investing in such companies so we could help them grow to become USD 100 mn businesses. With our extensive financing resources and global network and collaborating with 350 retailers worldwide, we also seek to bring these opportunities to Sri Lanka, fostering mutually beneficial partnerships with local stakeholders.”
With a structured corporate venture capital arm ‘PDS Ventures’, the Company strategically invests in the sustainability and circular economy space.
“Human capital in Sri Lanka is so evolved and developed,” said Seth adding, “It is because of this that we see the industry moving forward speedily. Our Global Head of ESG and Director of Sustainability and Innovation drives this global agenda, while compared to other countries, our Sri Lankan team possesses the unique ability to understand and drive this sustainability agenda.” by 2025.
Despite a decline in orders across the globe due to rising inflation and a slowdown in the growth of developed economies, PDS saw Norlanka emerging as a reliable partner for both retailers and customers. “From a national perspective, as long as GSP+ remains in place and Sri Lanka continues to nurture relationships, the country should be well-equipped to navigate these challenges. While focusing on doubling business, Sri Lanka must also ensure it can keep up with increased production demands. Wherever there is a crisis, we should be able to see an opportunity. As the middle market is gradually disappearing, pricing is a challenge – retail must become more agile.”
