PDS, a textile manufacturer, has experienced faster business growth over the previous two years thanks to the China Plus factor and a developing outsourcing tendency. The Mumbai-Headquartered company is the industry leader in offering sourcing services to some of the major international fashion brands from countries such as Bangladesh, Sri Lanka, Turkey, and Vietnam.
In order to take advantage of the PLI scheme’s benefits, it has planned to increase operations in India. It plans to double its sales in the following four years after it reached $1 billion in FY22.
Global fashion brands are adopting outsourcing due to rising sustainability and regulatory concerns. PDS anticipates capitalizing on this trend to increase its market share.
PDS has established a wide network of small and medium size vendors across the nation, in contrast to the typical business model, which calls for creating capacity to produce clothing for international brands. Its clientele is diverse, ranging from more expensive Primark to exclusive and non-exclusive premium luxury brands like Ralph Lauren. The US, the UK, and the rest of Europe account for the majority of its customers. Vendors who use PDS can benefit from its services like funding and research and development (R&D).
It spent around 60 Crores on R&D last year with an emphasis on governance, social, and environmental issues.
The company has very little non-current debt in FY22 because of its asset-light business model. It had a negative working capital cycle and a reported return on equity of 27%. Additionally, it has its own manufacturing, which only accounts for 10% of its revenue. which changed in the prior fiscal year.
The company recorded ₹8,828 crore in revenue and a net profit of ₹292.8 crore in FY22, respectively. PBDIT margin, or operating margin before amortization, was 4.6%.
