The Coimbatore-based big garment exporter and retailer, S. P. Apparels Ltd (SPAL) has recently announced that it has acquired the Sri Balaji Bakiam Spinning Mill at Vazhapady near Salem. According to an official of the company, the mill is having a capacity of 12,672 spindles and it will become a fully-owned subsidiary of the SPAL. This newly acquired mill will add an amount of Rs. 11 crore to the fully integrated garments exporter and retailer companys topline and it will also increase the revenue of the SPAL by 4 per cent.
The Managing Director of the SPAL, Mr. P. Sundararajan has released a statement regarding the matter and said that after entering the spinning sector, the SPAL has now become a "fully integrated textile company". The company is currently operating in the sectors like spinning, retailing, fibre and fashion and SPAL has acquired the new spinning mill as a part of its plan to establish a spinning mill to expand its business further.
Mr. Sundararajan was also talking about the planning of the company with the newly acquired spinning mill and said that the new mill will fulfill about 10 per cent of the current yarn requirements of SPAL. He said that the company will have to spend an amount of around Rs 26 crore for acquiring the spinning mill and a part of the amount will come through internal accruals and taking over of the bank liabilities. He further said that the new unit started its full production from the month of April, 2007 and there are 150 employees working here at the moment.