NEW DELHI: Textile firm S Kumars is in advanced stage of negotiations to acquire a UK-based fashion firm controlled by NRIs. The company supplies a range of clothing and accessories for men, women and kids to high street retailers. It also offers a range of services from design to manufacturing and distribution.
S Kumars’ is interested in having a presence abroad in the textile distribution and retailing segment. S Kumars wants to acquire the UK company in order to strengthen its back-end operation that would enable it to increase its share in the domestic as well as export market.
The UK-based fashion outfit has sourcing offices in China, Hong Kong and Bangladesh. The UK Company is into sourcing, designing and warehousing fabrics and readymade clothes. This will definitely help S Kumar’s to enhance focus on the domestic luxury segment.
The contribution of exports to S Kumars’ revenue was hardly 3% last fiscal, but the company would like to scale this up. An acquisition of a foreign sourcing chain can give S Kumars enough marketing muscle and a foothold in the high-end UK market.
Recently leading terry towel maker Welspun acquired UK premium towel brand Christy for Rs 132.6 crore last year. Another firm, Himatsingka Seide, acquired three companies abroad this year — US-based DWI Holdings, Giuseppe Bellora and Divatex Home Fashions. The acquisition brought Himatsingka large distribution networks in the home textile space. DWI has the licenses for the sourcing, marketing and distribution of luxury home textile brands — Calvin Klein, Barbara Barry and Royal Sateen.