PDS, a fashion and apparel company, expects an exclusive sourcing agreement signed with leading brands in India to open up a new revenue stream going ahead.
Sanjay Jain, Group CEO, PDS told businessline that the company would be expanding its partner factory network in India as well as its own factories and partner network in Bangladesh, Sri Lanka, China and Turkey.
The company has a top line of $1.4 billion based on trailing last 12 months ended December. Given the potential of sourcing as a service and orders in hand, it should add another $1 billion in merchandise value (handled by the company), he added.
The company’s top line grew 29 per cent to ₹7,835 crore in nine months ended December.
It has already crossed the ₹10,000-crore mark in the last 12 months, making it the largest multinational B2B apparel company in terms of the size of business.
The company aspires to double revenue to ₹18,000 crore over 5 years though short-term challenges persist in terms of global slowdown and high inflation suppressing demand in select markets, he said.
Globally, he said the company had signed an agreement with Asda in the UK, which should open up annual merchandise value of $350 million, besides the leading brands such as Hanes, S Oliver, Sainsbury, Ralph Lauren.
PDS works with a network of about 600 factories across the globe to fulfil its sourcing contracts. It takes about one year to get a factory onboard after ensuring all the criteria laid down by the retailers (are met), he said.
PDS intends to allocate ₹50-60 crore annually for capital expenditure in both sourcing and manufacturing, while ramping up its ESG compliance.
It is also planning to build a solar facility at its plants in Bangladesh.
“We recently put up a wash plant in one of our factories and it led to reduction in the water usage. We are also investing in rooftop solar panels in Bangladesh as the power situation in the last few months has not been very conducive,” he said.