Companies

PDS Multinational Fashions expects growth in topline backed by expansion and diversification

Shobha Roy Kolkata | Updated on August 04, 2021

The ₹6,200-crore company, which is into apparels, is looking to expand into home fashion and active wear categories across existing markets

PDS Multinational Fashions (PDS), which witnessed a seven per cent sales decline in FY21, is expecting a growth in its topline this year, backed by expansion of geographical footprint and diversification into new product categories.

The ₹6,200-crore company, which is into apparels, is looking to expand into home fashion and active wear categories across existing markets.

PDS offers a global plug-and-play, design-led sourcing, manufacturing and supply chain platform and caters to over 190 leading brands and retailers globally.

According to Sanjay Jain, CEO, PDS, the lockdowns induced due to Covid-19 pandemic impacted supply chain and led to a decline in sales during the first half of last year. However, the company experienced growth in the latter part of last fiscal. On a sequential basis, it saw turnover increasing by around nine per cent in Q4FY21 at ₹1,765 crore, up from ₹1,626 crore in Q3 of last year.

“The pandemic hit the retail and apparel sector and consumption of fashion goods was low. But we worked proactively and looked at new opportunities and ventured into PPE gears. We arrested the decline in sales (on a year-on-year basis) to around seven per cent last year and also managed to bring down cost,” Jain told BusinessLine.

With some of its key markets in the UK, Europe and the US opening-up and witnessing higher vaccinations, there has been good traction (in demand) during the first quarter of this fiscal. The company is hopeful of getting “back on track” in terms of pursuing its growth target during the current fiscal, he said refusing to divulge further details.

Geographic and category expansion

PDS, with a presence in over 22 countries, is looking to expand its footprint in the US market and has onboarded business leaders, according to information available in its latest annual report.

It is also building teams focused on Australia, New Zealand and Scandinavian countries targeting geographic expansion.

Europe and the UK are predominant markets for PDS accounting for nearly 84 per cent of its total business. The US, which accounts for around eight per cent, should increase to around 20 per cent over the next three-to-five years.

“We follow a calibrated approach and keep concentration risk in mind. While the UK and Europe will continue to remain our predominant markets, the share of US is expected to increase to around 20 per cent in the next three-to-five years,” he said.

Apart from strengthening its footprint in newer markets, the company also plans to focus on turning around its manufacturing facilities in Bangladesh by increasing utilisation and enhancing efficiencies. PDS has manufacturing facilities spread across Bangladesh, Sri Lanka and India (via a minority stake).

The company would focus on doubling production. It aims to get large order volumes and enhance customer service to ensure repeat orders and also referrals from existing customers, it said in the annual report.

Close to 10 per cent of the company’s topline comes from its own manufacturing while the remaining comes from sourcing primarily from Bangladesh, China, Egypt and Myanmar among others.

The company has already set up a team for foraying into home textile category.

“We are in dialogues with our customers. We hope to start by October this year and by March, we expect a small part of our turnover to come from this segment,” he said.

Published on August 04, 2021

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