Business

Softlogic acquires Cotton Collection with an eye on retail space dominance

Softlogic Holdings PLC’s subsidiary ODEL PLC has acquired popular fashion retail chain Cotton Collection Pvt Ltd for Rs. 300 million, strengthening its presence in the fashion retail market.

Commenting on the acquisition, Softlogic Group Chairman Ashok Pathirage said Cotton Collection would be a perfect fit for Softlogic’s ambitions in the retail space.

“Cotton Collection is a great brand that we have witnessed evolving over the years. It has its own loyal customer following and we feel this acquisition would be a perfect fit for our aspirations in elevating the fashion retail landscape of the country.”

He added that the acquisition was made banking on the expected expansion of Sri Lanka’s retail space and the growing middle class.

“Along with increased tourism, urbanization and a growing middle income bracket, the soon to be opened malls such as CCC Mall which will open in September, Shangri-La Mall which will open in mid 2019 and the 645,000 sq ft ODEL Mall slated to open in 2020, will open out more retail space to the market and tremendously upgrade the retail shopping and lifestyle experience of the consumer. We feel we are well positioned as a Group to tap into the immense growth potential that retail would offer and thereby further consolidate our presence in this segment.”

Cotton Collection was founded by Niloufer Esufally Anverally in 1991 and currently has 200 employees in 5 branches spread across 15,000 square feet. It posted 20% YoY growth in the financial year 2017/18. Anverally maintains ownership of her alternate brand Leather Collection.

“Cotton Collection is more than a brand, it’s a lifestyle. Through a journey spanning 27 years, my team and I have built a brand that has helped shape and develop the fashion retail landscape of Sri Lanka. This decision was inspired by the desire to dedicate more time to my family and it will also allow me to grow the Leather Collection brand to be a strong contender in today’s market,” she said.

In 2014, Softlogic Holdings PLC acquired Odel (Pvt) Ltd and Cotton Collection would be the second largest apparel based member in the group, which has several stand-alone branded apparel stores and employs over 9,000 people in its offices located in Sri Lanka and Australia. Softlogic said it aims to merge back office operations, human resource functions and the customer base of both Odel and Cotton Collection.

Capital Alliance Partners Limited (CAL) functioned as the financial advisor to Mrs. Niloufer Esufally Anverally on the transaction which will herald in a new age for Sri Lankan fashion retail.