Global fashion infrastructure platform PDS eyes further expansion in Sri Lanka

Earlier this year, global fashion infrastructure platform PDS Limited announced the unveiling of a centralised cutting plant in its Sri Lankan subsidiary Norlanka, located in Malwana. 

With a fully-digitalised and integrated system, starting from mill inspection to warehouse operations, fabric inspection and the cutting process, this initiative is a testament to how multinational companies can collaborate effectively with local manufacturers, by leveraging technology.

Founded over 24 years ago in Hong Kong, PDS has been growing steadily, creating a network that oversees the end-to-end manufacturing process of apparel. Despite global economic challenges that have impacted apparel manufacturers worldwide, the company generated US $ 2 billion in gross merchandise value and is poised to more than double its revenue in the next four to five years.

Priding itself as a global collaborative platform catering to over 300+ brands, the company has expanded to over 22 countries, providing a global plug-and-play platform for entrepreneurs in the areas of designing, sourcing, manufacturing and brand management, serving leading global brands and retailers. This unique business model not only operates in an asset-light manner, infusing scalability and robustness into the business but also promotes a large entrepreneurial ecosystem throughout its entire value chain.

PDS Executive Vice Chairman Pallak Seth said, “We are looking to further expand our manufacturing footprint to include Egypt and India, while also exploring other strategic locations. Establishing a green field manufacturing plant is challenging, time-consuming and costly in the current context due to the challenges in finding manpower. Therefore, our models involve acquiring businesses by taking the majority stake and integrating them into the PDS platform, allowing manufacturers access to our global network of designers and vendors.”
PDS first established its presence in Sri Lanka over 10 years ago by setting up Norlanka.
“Sri Lanka is a great manufacturing destination that offers excellent quality and commendable health and safety standards, particularly for baby products and intimate wear,” he explained. 

“In just a few years, we generated a revenue of US $ 100 million by adopting a customised model designed specifically to meet consumer needs. We are now regarded as the preferred vendor for retailers, who would otherwise find it challenging to manage and collaborate with smaller factories. PDS is the conduit that ensures designs and financing are provided to factories. This leaves room for the factories to focus on manufacturing.”
In the world of global manufacturing, PDS views its subsidiary Norlanka as a thriving success story, poised for remarkable growth. The company aspires to achieve a revenue of US $ 120 million this year, with ambitions to double its business within the next three to four years.

In order to reach this target, PDS has several initiatives in the pipeline. The company recently invested in a manufacturing base in Trincomalee for babywear and partnered with a further two to three factories to enhance its capacity.

The company also established a centralised cutting plant in close proximity to the commercial capital Colombo, opening up capacity, adding value and creating further investment opportunities for vendors and customers.
“There are good apparel manufacturing facilities in Sri Lanka that are US $ 10 to 50 million in size, which have demonstrated governance, compliance and are future-ready,” stressed Seth. 

“PDS is interested in investing in such companies, so we could help them grow to become US $ 100 million businesses. With our extensive financing resources and global network and collaborating with 350 retailers worldwide, we also seek to bring these opportunities to Sri Lanka, fostering mutually beneficial partnerships with local stakeholders,” Seth said.