Hela Apparel sold two manufacturing subsidiaries in Sri Lanka for Rs. 2.7 billion to Singapore’s Q Collection, aiming to strengthen finances and simplify operations while maintaining service to global clients.
Strategic Sale of Manufacturing Subsidiaries Strengthens Financial Position
Hela Apparel is restructuring by selling two manufacturing sub-subsidiaries, Jinadasa Bennett and Foundation Bennette, to Singapore’s Q Collection for Rs. 2.7 billion.
Key Assets Included in Divestment
The two subsidiaries own manufacturing plants located in Narammala and Mawathagama, as well as a warehouse facility in Uhumeeya. These assets are now under the stewardship of Q Collection, a rising player in South Asia’s apparel manufacturing sector known for high-efficiency production for global fashion brands.
Strategic Partnership Ensures Continuity
Even after selling the two subsidiaries, Hela Apparel will still offer the production from these factories to its international customers. Q Collection will handle the orders, making sure service and income continue smoothly. This lets Hela focus on its main business and stay competitive.
Employee Security and Regulatory Approval
The transaction, approved by the Board of Investment (BOI) of Sri Lanka on May 14, does not qualify as a major transaction under the Companies Act. Employees at the affected manufacturing subsidiaries will retain their jobs under existing terms, ensuring stability during the transition.
Focus on Financial Sustainability and Operational Agility
The money from the sale will be used to pay off short-term debts and make Hela’s finances stronger. This will help the company improve its money management, make its supply chain more flexible, and strengthen its position in the market.
Continued Commitment to Sri Lanka
Even after selling two manufacturing subsidiaries, Hela still runs four factories in Sri Lanka, including a leased site in Palapathwala, showing it is committed to the country’s apparel industry for the long term.