Bannari Amman Spinning Mills Ltd (BASML) has announced that SP Apparels Ltd has expressed interest in acquiring its textile subsidiary, including a garment factory and lands in Perundurai, to reduce its borrowings. BASML intends to utilize the funds generated from the sale to alleviate its financial liabilities.
BASML’s board recently approved the proposals for the transfer, disinvestment, or sale of its equity shareholding in its subsidiary and joint venture company, Young Brand Apparel Private Ltd. Additionally, the textile company plans to sell its garment unit situated in Palladam Hi-Tech Weaving Park, Tamil Nadu, and a 6.43-acre property in Perundurai.
SV Arumugam, Managing Director of BASML, is leading negotiations to finalize the proposed transaction. However, the deal is contingent upon receiving the necessary approvals from regulatory authorities.
Meanwhile, SP Apparels has also received board approval to acquire Young Brand Apparels Pvt Ltd (YBAPL) and the Palladam Garment units alongside the 6.43-acre land in Perundurai. YBAPL, a prominent manufacturing and export company, is a strategic partner for brands targeting the intimate wear market segment. It boasts a state-of-the-art manufacturing facility on the outskirts of Chennai and enjoys a strong customer base in the United States.
SP Apparels believes that acquiring YBAPL will enhance the synergies between the two companies, particularly regarding their customer base. The acquisition is a significant boost to SP Apparel’s core business. Both parties will proceed with the necessary procedures to finalize the transaction.
