Hyderabad based Filatex Fashions Limited (FFL), one of the largest manufacturers of Premium Quality Socks intends to acquire 51% stake in Isabella (P) Limited, Sri Lanka, which is in the business of Manufacturing Apparels, f or a consideration of US$ 7.55 Million.
The Company has initiated due-diligence process for acquiring/share subscription of Isabella (P) Limited, Sri Lanka. “The due diligence is on. We are hoping to be completing the whole process in the next two months,” Prabhat Sethia, Managing Director of FFL said.
Isabella, Sri Lanka, for over 25 years has been manufacturing and supplying socks & tights to various clients in Germany, France, Canada and Czech Republic.
It is the 2nd largest manufacturer of socks & tights in South Asia, with an annual capacity of 48 million pairs.
The company boasts of total backward integrated manufacturing process, with consistency, reliability, flexibility and high quality, complying to international standards.
Isabella is enriched with foreign collaboration and technical expertise having a strength of over 2000 personnel. They produce wide variety of socks, such as business, casual, fashion, etc., using various yarns made from cotton, bamboo, viscose, acrylic, etc.
Filatex Fashions Limited (FFL) is operational for over two decades. The plant is housed in Hyderabad, Telengana State, India.
This fully air-conditioned facility is an ultra-modern unit with production capacity of 7 million socks per annum. These machineries are fully computerized automatic machines, backed by state-of-art technology in knitting & embroidery, thereby enabling fastest production techniques.
FFL’s secret behind impeccable delivery and customer satisfaction are its committed and dedicated work-force who are trained in Italy and Korea, and its experienced management personnel, enabling the company to achieve most competitive prices in the market.
FFL shall achieve strong synergy through this strategic acquisition of Isabella (P) Limited, Sri Lanka.
“We are planning to raise our paid-up capital to ₹250 crore from ₹48 crore by way of preferential allotment of shares at various price bands. This will enable us to raise about ₹400 crore,” he said.
He said the company was in the process of expanding its capacity to produce 30 million socks a year from the present capacity of 7 million.
“We are investing about ₹350 crore for our expansion plans, which include foraying into track suits and t-shirts. We are importing 500 machines for our socks business,” he said.
It is planning to hire about 1,700 employees to support the expanded capacities, he said. About 80 per cent of the socks that the company’s produces is white-labeled for some global brands.