On November 8, 2025, S.P. Apparels Limited announced a significant investment of ₹43.5 crores (approximately USD 490,000) in its wholly owned subsidiary, S.P. Apparels International Private Limited (SPAIPL). This strategic move aims to bolster SPAIPL’s operations in Sri Lanka, where it has been engaged in garment manufacturing since its incorporation on October 16, 2023. The investment is expected to enhance SPAIPL's capabilities and expand its business footprint, aligning with S.P. Apparels' long-term growth objectives.

The acquisition falls under the category of related party transactions, as key figures from S.P. Apparels, including Managing Director Mr. P. Sundararajan and Joint Managing Director Mr. S. Chenduran, also hold director positions at SPAIPL. Despite this connection, the transaction has been confirmed to be conducted at “arm’s length,” ensuring compliance with regulations and safeguarding shareholder interests. As of March 2025, SPAIPL reported a turnover of 1,872,585 LKR, further highlighting the subsidiary’s operational potential.

This cash investment strengthens S.P. Apparels' commitment to leveraging cost-effective manufacturing advantages in Sri Lanka, a strategy aimed at enhancing overall business efficiency. The expansion into SPAIPL is positioned to provide strategic benefits, enabling the company to navigate competitive market challenges effectively. With this acquisition, S.P. Apparels maintains 100% control over SPAIPL, reinforcing its dedication to growth in the garment manufacturing sector.