SARASAVI: hosiery mill acquisition promises sales rise
HOSIERY specialist Sarasavi Exports acquired from DBApparel the Isabella hosiery mill, said to be the largest knitter of socks and tights in Sri Lanka, for around EUR 8.3m. Part of the deal is a buy-back agreement that allows the new owner to continue supplying HanesBrands, that recently acquired the DBApparel business. Sarasavi Chairman and Managing Director Hemantha Kumara commented: “This transaction allows Sarasavi Exports to establish itself as the premier exporter of hosiery products and socks from Sri Lanka and positions the company to take advantage of the free trade agreement with India and the pending free trade agreement with the Peoples Republic of China.” He added that Sarasavi is planning to invest in automation and product development to take advantage of the new export opportunities.
Already a major world source of lingerie and underwear, Sri Lanka will assume greater importance also in the hosiery sector as a result of the planned expansion of capacity.