Sri Lanka’s Softlogic Plc expands portfolio through the acquisition of another high net worth brand name
Sri Lanka’s Odel Plc, which is a member of Softlogic Holdings Plc, has acquired Cotton Collection Ltd from its founder Niloufer Esufally Anverally at a sum of Rs. 300 million.
Odel has reportedly said the acquisition is in line with the Company’s strategy of expanding the product portfolio and retail footprint.
The move is expected to give the Softlogic Group significant flexibility in terms of brand positioning utilizing product portfolios of both Odel and Cotton Collection.
Additionally, Odel sees significant synergies in terms of back office amalgamation, human resource functionality and blended customer base of both Odel and Cotton Collection.
Media reports noted that Cotton Collection was founded by Anverally in 1991, at a time when fashion retail in Sri Lanka was at a nascent stage.
The company today boasts over 15,000 square feet spread across five branches. The 200-strong workforce of Cotton Collection comprises a home-bred design team that curates bohemian, free-spirited collections that have carved out a niche market share over the years.
The iconic brand placed on record an exponential YoY growth of 20% in financial year 2017/18.
The acquisition of Cotton Collection by Odel Plc is an indication of the strength of Sri Lankan business entities and the potential for growth in other Sri Lankan companies. Foreign businesses/investors could look at investing in Sri Lankan companies or form joint ventures to expand the businesses. Sri Lanka has mane trade agreements and trade concessions to its benefit. Hence, investments in a Sri Lankan company and promoting expansion into the global market would ensure definite returns.
|Article Code :||VBS/AT/03092018/Z_3|