A partnership that grew one step at a time
S.P. Apparels began as a partnership formed in December 1988 and started exporting in 1989. It added its own factory at Neelambur in 1998, an embroidery unit in 2003, and in 2004 its flagship plant at Avinashi, near Tiruppur, doing everything from cutting to packing. A printing unit followed, and in 2005 it became a company. P. Sundararajan is its chairman and managing director.
Clothes for infants
Most of Tiruppur makes T-shirts for adults. S.P. Apparels chose knitted clothes for infants and children: bodysuits, sleepsuits, tops and bottoms, for retailers such as Marks & Spencer, Tesco and The Children’s Place, which have all given it supplier awards. Baby clothes demand soft fabric, safe dyes and strict checks, which keeps out many smaller rivals.
Strict standards keep out many smaller rivals.
From yarn to box
Over the years it took in more steps itself: a spinning mill making about 25 tonnes of yarn a day by 2019, knitting, processing, printing and embroidery. It also licensed the Crocodile brand for Indian retail, and in 2024 agreed to buy Young Brand Apparel to enter innerwear.
Reading the numbers
Revenue grew from ₹1,395 crore in 2024-25 to ₹1,578 crore in 2025-26, with net profit of ₹95 crore and ₹101 crore and an operating margin of about 13% in both years. Borrowings rose from ₹381 crore to ₹419 crore.
The number worth watching is the cash cycle: the days between paying for cotton and collecting from buyers. It fell from about 216 days to 156. For a garment exporter, freeing two months of cash can matter as much as a point of margin.
Freeing two months of cash can matter as much as a point of margin.
Points for a finance reader
- Pick a niche with high standards. Infant wear is harder to make, and harder for others to enter.
- Integrate where it saves time and control. Own spinning and dyeing shorten lead times for demanding buyers.
- Watch the cash cycle, not just profit. Stock and receivables tie up cash that interest has to pay for.