Sri Lanka’s MAS Holdings enters into new venture with BAM Knitting.
Daily FT: MAS Holdings has launched a new venture by acquiring the assets of BAM Knitting Ltd., a leading fabric manufacturing and finishing operation in Sri Lanka.
MAS Holdings takes the majority stake in the new venture, with BAM Knitting as its joint venture partner. This investment further enhances MAS’ capabilities in the knitting, dyeing and printing space for cotton fabrics and expands its backward vertical integration on the island. The new joint venture will benefit from the technical resources and expertise of MAS, following the appointment of MAS specialists to key roles in the company, as well as MAS’ vast global experience in apparel and textile manufacturing. Significant synergies are expected from the acquisition, including production capacity enhancements and collaborations on new product developments.
“This acquisition is timely, both from the perspective of MAS and the Sri Lankan economy,” said MAS Holdings CEO Suren Fernando. “It enables MAS to increase the verticality of our Sri Lankan operations and mitigates the increasing volatility of global supply chains and costs of logistics while increasing the overall value added by MAS. It also highlights our continued confidence in Sri Lanka as a sustainable and competitive destination for apparel manufacturing, despite the ongoing economic challenges,” he added.
“This new investment also serves as an endorsement of MAS’ continued confidence in the Sri Lankan apparel industry, especially at a time the island nation is undergoing many economic challenges,” Fernando added. “Initiatives of this nature are critical in ensuring the country’s long-term economic resilience and stability by helping to reduce its imports and strengthen exports. MAS takes pride in providing leadership to these efforts as Sri Lanka’s largest exporter,” said BAM Knitting CEO Amandha Fernando, who will be at the helm of the new organisation.
“The acquisition by MAS will undoubtedly elevate the capabilities that were developed at BAM, and MAS’ lean manufacturing processes, product development expertise and the strong people-centric ethos will surely transform the existing operation into a truly world-class business,” he added.
The investment is part of MAS’ strategy to further strengthen operations in Sri Lanka, from where the company sources 50% of its raw material requirement, as a key hub for complex apparel products. As part of this strategy, MAS will continue to optimise and grow its capacity in Sri Lanka, focusing on aggressive productivity improvements and increased agility.
BAM Knitting Ltd., located in Thulhiriya, Sri Lanka, was the fabric manufacturing and finishing arm of BAM Holdings Ltd. Incorporated in 2005, the company is an established player in the flatbed knitting arena in the country. It functions as a fully-fledged and versatile fabric manufacturer and possesses the ability to dye both yarn and fabric, knit complicated structures and handle fabric printing.
Sri Lanka’s apparel industry is one of the fastest growing industries in the country which is also a key foreign exchange earner for the country. Despite facing many challenges in the past few years including a global pandemic, the country’s apparel industry has managed to maintain the industry’s growth momentum and recorded impressive profits. The many trade agreements as well as trade concessions enjoyed by the country have also helped boost Sri Lanka’s apparel industry and it’s exports. The growing business potential in the apparel industry has also pushed local authorities to introduce many incentives to businesses engaged in the industry as well as interested investors. Given the growth and business potential in the apparel industry, foreign businesses/investors could confidently explore the business/investment opportunities in Sri Lanka’s apparel industry.
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