Socks maker Filatex Fashions proposes to acquire 51% stake in Sri Lankan apparel manufacturer Isabella for $7.55 million.
Announcing that the due-diligence process for acquiring the stake has been initiated, Filatex said Isabella, for more than 25 years, has been manufacturing and supplying socks and tights to clients in Germany, France Canada and Czech Republic. It is the second largest manufacturer of socks and tights in South Asia, with a capacity of 48 million pairs.
Isabella, which has a workforce of over 2,000 people and boasts of backward integrated manufacturing process, produces a wide variety of socks using various yarns made from cotton, bamboo, viscose and acrylic. Filatex has a plant in Hyderabad with a capacity to make 7 million socks.