MAS Holdings CEO Suren Fernando (right) exchanges the agreement with BAM Knitting Managing Director Amandha Fernando. Others (from left): BAM Knitting Director Operations Bhanuja Bandara, MAS Group Finance Director Prasanna Jayasekera, BAM Knitting Chief Financial Officer Asela Jayasiunghe, MAS Holdings Chief Operating Officer Shakthi Ranatunga, Director Operations Dinouk Sirisena and Deputy General Manager - Corporate Finance Isuri Beneragama
- MAS increases investment in supply chain and re-affirms confidence in Sri Lanka
MAS Holdings has launched a new venture by acquiring the assets of BAM Knitting Ltd., a leading fabric manufacturing and finishing operation in Sri Lanka.
MAS Holdings takes the majority stake in the new venture, with BAM Knitting as its joint venture partner. This investment further enhances MAS’ capabilities in the knitting, dyeing and printing space for cotton fabrics and expands its backward vertical integration on the island.
The new joint venture will benefit from the technical resources and expertise of MAS, following the appointment of MAS specialists to key roles in the company, as well as MAS’ vast global experience in apparel and textile manufacturing. Significant synergies are expected from the acquisition, including production capacity enhancements and collaborations on new product developments.
“This acquisition is timely, both from the perspective of MAS and the Sri Lankan economy,” said MAS Holdings CEO Suren Fernando. “It enables MAS to increase the verticality of our Sri Lankan operations and mitigates the increasing volatility of global supply chains and costs of logistics while increasing the overall value added by MAS. It also highlights our continued confidence in Sri Lanka as a sustainable and competitive destination for apparel manufacturing, despite the ongoing economic challenges,” he added.
“This new investment also serves as an endorsement of MAS’ continued confidence in the Sri Lankan apparel industry, especially at a time the island nation is undergoing many economic challenges,” Fernando added. “Initiatives of this nature are critical in ensuring the country’s long-term economic resilience and stability by helping to reduce its imports and strengthen exports. MAS takes pride in providing leadership to these efforts as Sri Lanka’s largest exporter,” said BAM Knitting CEO Amandha Fernando, who will be at the helm of the new organisation.
“The acquisition by MAS will undoubtedly elevate the capabilities that were developed at BAM, and MAS’ lean manufacturing processes, product development expertise and the strong people-centric ethos will surely transform the existing operation into a truly world-class business,” he added.
The investment is part of MAS’ strategy to further strengthen operations in Sri Lanka, from where the company sources 50% of its raw material requirement, as a key hub for complex apparel products. As part of this strategy, MAS will continue to optimise and grow its capacity in Sri Lanka, focusing on aggressive productivity improvements and increased agility.
BAM Knitting Ltd., located in Thulhiriya, Sri Lanka, was the fabric manufacturing and finishing arm of BAM Holdings Ltd. Incorporated in 2005, the company is an established player in the flatbed knitting arena in the country. It functions as a fully-fledged and versatile fabric manufacturer and possesses the ability to dye both yarn and fabric, knit complicated structures and handle fabric printing.