Business
Hela Apparel Holdings acquires major UK-based apparel brand licensing house
Landmark acquisition signifies the first time a Sri Lankan apparel manufacturer has acquired a brand management company in one of its key markets.
In a landmark move for the Sri Lankan apparel industry, Hela Apparel Holdings PLC has announced the acquisition of a major UK-based apparel brand licensing house. The company, which currently trades under the name Focus Brands, is a market leader in the design, sourcing, distribution and promotion of sports fashion and lifestyle apparel brands.
It currently holds exclusive licensing agreements for the design and distribution of a number of major apparel brands, including Ellesse and Nautica, in the UK, European Union and other global markets. Hela has acquired a 100% shareholding in the company from JD Sports Fashion PLC, one of the world’s leading global omnichannel retailers of sports, fashion, and outdoor brands with 3,400 stores across 38 countries.
Through the acquisition, Hela has taken the first major step in its strategy to become a fully vertically integrated service provider for the apparel sector. Focus Brands will form the basis for the organisation’s new brand licensing division, which will initially operate independently of the existing apparel manufacturing business. The transaction also marks the first time a Sri Lankan apparel manufacturer has acquired a brand management company in one of its key markets, moving Hela significantly closer to its end customer and expanding its range of services to brand marketing and distribution.
Sharing his thoughts on the acquisition, A. R. Rasiah, Chairman of Hela Apparel Holdings PLC, said “The addition of Focus Brands to the Hela Group is a watershed moment for us as an organisation. We see immense potential to build significant synergies with our existing manufacturing business, supported by the addition of a Focus Brands well-experienced team of over 200 who have a proven track record of successfully growing major apparel brands. We intend to leverage their renowned design, product development, marketing, and distribution capabilities to further elevate Hela’s offering to its existing customers across the industry.”
The acquisition will expand Hela’s global presence through Focus Brands’ six state-of-the-art product showrooms located in London, Manchester, Berlin, Munich, Düsseldorf, and Amsterdam, alongside a sourcing office in China. The company’s service offering to its customers will be further strengthened through a network of warehousing facilities in the UK and Europe, placing Hela in a distinctively advantageous position within the industry.
Dr Alastair Alderton, Co-Chairman and Non-Executive Director of Hela Apparel Holdings PLC, and CEO of Rianta Capital, a London-based investment advisory firm with a strong footprint in the global fashion industry and representatives of Hela’s largest shareholder, added his thoughts on the acquisition. “The global apparel industry as we know, has changed drastically. The demands of consumers are evolving at a rapid pace and geopolitical volatility is increasing, which calls for much closer collaboration and harnessing of synergies between apparel brands and trusted manufacturers. Through this acquisition, Hela will gain closer access to its end-consumer and be able to provide truly comprehensive solutions to the brands it serves. We look forward to supporting Hela on this journey with Rianta Capital’s market-leading expertise in forward-looking consumer apparel businesses.”
Indian tycoon Ratan Tata has died aged 86, says the Tata Group, the conglomerate he led for more than two decades.
Tata was one of India’s most internationally recognised business leaders. The Tata Group is one of India’s largest companies, with annual revenues in excess of $100bn (£76.5bn).
In a statement announcing Tata’s death, the current chairman of Tata Sons described him as a “truly uncommon leader”.
Natarajan Chandrasekaran added: “On behalf of the entire Tata family, I extend our deepest condolences to his loved ones. “His legacy will continue to inspire us as we strive to uphold the principles he so passionately championed.”
During his tenure as chairman of the Tata Group, the conglomerate made several high-profile acquisitions, including the takeover of Anglo-Dutch steelmaker Corus, UK-based car brands Jaguar and Land Rover, and Tetley, the world’s second-largest tea company.
UK Business Secretary Jonathan Reynolds said in tribute that Tata was a “titan of the business world” who “played a huge role in shaping British industry”.
A profile published in the Economist magazine in 2011 called Tata a “titan”, crediting him with transforming the family group into “a global powerhouse”.
“He owns less than 1% of the group that bears his family name. But he is a titan nonetheless: the most powerful businessman in India and one of the most influential in the world,” the magazine said.
In 2012, he retired as chairman of the group and was appointed chairman emeritus of Tata Sons, the group’s holding company.
Indian Prime Minister Narendra Modi hailed Tata as a “visionary business leader, a compassionate soul and an extraordinary human being”.
Paying tribute on X, formerly known as Twitter, Modi recounted “countless interactions” with Tata and said he was “extremely pained” by his death.
Tata was born in a traditional Parsi family in 1937. He studied architecture and structural engineering at Cornell University in the US. In 1962, he joined Tata Industries – the promoter company of the group – as an assistant and spent six months training at a company plant in Jamshedpur. From here, he went on to work at the Tata Iron and Steel Company (now Tata Steel), Tata Consultancy Services (TCS) and National Radio and Electronics (Nelco).
In 1991, JRD Tata, who had led the group for over half a century, appointed Ratan Tata as his successor. “JRD Tata was my greatest mentor… he was like a father and a brother to me – and not enough has been said about that,” Tata later told an interviewer.
In 2008, the Indian government awarded him the Padma Vibhushan, the country’s second-highest civilian honour.
He was drawn into a rare unsavoury controversy in 2016, when his successor as Tata Sons chairman, Cyrus Mistry, was ousted from the role, sparking a bitter management feud. Mistry died in a car crash in 2022.
The business tycoon also had a lighter side to him. His love for fast cars and planes was well-known – the Tata group website describes these as some of his “enduring passions”.
Tata was also a scuba diving enthusiast, a hobby that fizzled with age “as his ears could take the pressure no more”.
He was also a dog lover and fondly remembered the many pets who gave him company over the decades. “My love for dogs as pets is ever strong and will continue for as long as I live,” the industrialist said in a 2021 interview. “There is an indescribable sadness every time one of my pets passes away and I resolve I cannot go through another parting of that nature. And yet, two-three years down the road, my home becomes too empty and too quiet for me to live without them, so there is another dog that gets my affection and attention, just like the last one,” he said.
He was also often praised for his simplicity. In 2022, a video of him travelling in a Nano car – one of the world’s cheapest cars, now mostly remembered as one of Tata’s failed dreams – went viral on social media.
[BBC]
By Ifham Nizam
In an analysis of Sri Lanka’s public sector, Dr. Lakmini Fernando, Research Fellow at the Institute of Policy Studies of Sri Lanka (IPS), stresses the urgent need for rationalizing public sector employment to create a more productive and efficient system.
Addressing a packed audience at the launch of the IPS annual report, titled “Sri Lanka: State of the Economy 2024” on Tuesday, Dr. Fernando outlined how Sri Lanka’s bloated public sector, while providing substantial employment, should be rationalized for increased productivity.
The public sector employs 15% of the total workforce in Sri Lanka and makes up 35% of formal employment—figures that reflect global trends, where public sectors account for 11% of total employment and 37% of formal employment. In addition, it consumes a staggering 26% of public expenditure and 5% of GDP.
Fernando argued that, in this context, improving the efficiency of this vast machinery is critical, not only for the government’s fiscal health but also for the nation’s social welfare goals.
Fernando added: ‘If we are to achieve our social objectives like the Sustainable Development Goals and improving governance, the public sector must be more productive. In fact, from 2005 to 2023, Sri Lanka’s public sector grew by 60%, from 0.9 million to 1.4 million employees. Despite this expansion, the country’s governance score is alarmingly low, with a rating of -0.65, compared to the much higher ratings of 1.8 in countries like New Zealand and Australia.
‘At its core my proposal is to downsize the public sector, while simultaneously increasing wages for remaining workers. If Sri Lanka reduces its public sector workforce by 20%, it could afford a 30% pay rise for the remaining employees, while keeping the wage bill at 4% of GDP. This would not only boost worker morale but also improve productivity across the board.
‘However, such a pay rise alone would not guarantee productivity gains. The real challenge lies in reforming administrative operations. We need to adopt a new public management approach, similar to those implemented successfully in Malaysia, Singapore, and New Zealand, which focuses on merit-based recruitment and digitalization of services.
‘We need to eliminate “CEO-based performance systems” and replacing them with merit-based assessments to ensure that the public sector hires and retains the best talent.’
Research Officer IPS, Suresh Ranasinghe delved into the challenges facing Sri Lanka’s broader employment landscape. He pointed out that the country’s labour force participation rate had dropped to 48.6% in 2023, while the employment-to-population ratio declined to 46.3%. His research found that unemployment was not the only issue—labour market inactivity was also on the rise, particularly among the youth and less-educated men.
One of the most worrying trends Ranasinghe highlighted was the significant decline in high-skilled employment. From 2018 to 2023, the share of high-skilled workers fell from 23% to 20%, driven by migration during the country’s economic crises. He argued that without competitive salaries and investment in knowledge-based industries, Sri Lanka risked losing even more skilled professionals to emigration.
Both Fernando and Ranasinghe emphasised that immediate reforms are critical if Sri Lanka is to remain competitive in the global economy. Ranasinghe recommended promoting vocational education and training to combat youth unemployment, as well as updating education curricula to meet local and global demand.
By Ifham Nizam
President Anura Kumara Dissanayake, who also serves as the Minister of Agriculture, Land, Livestock, Irrigation, Fisheries and Aquatic Resources, is set to address matters related to the plantation sector, particularly worker wages and other pressing issues, an official said adding that the President has a tight schedule.
He said that the recent agreement in August with the Wages Board provides a daily minimum wage of Rs. 1,350 for plantation workers, along with an additional Rs. 50 per kilogram of tea leaves harvested above the daily target.
There was a Supreme Court interim injunction on 4th July that prevented the implementation of a gazette notification aimed at increasing the daily wage to Rs. 1,700.
Plantation workers can earn productivity-based incentives, which boost their overall earnings, with some additional allowances based on tea leaf collection.
Former President Ranil Wickremesinghe had previously announced a sharp wage hike for plantation workers to Rs. 1,700 during a May Day rally. However, there are ongoing debates about wage structures.
Trade unions and worker advocacy groups welcomed the Wages Board’s decisions, as they have been pushing for better compensation for plantation workers for a long time.
-
News5 days agoSajith top presidential election spender
-
Business6 days agoSri Lanka Tourism surpasses 2023 tourist arrivals
-
News7 days agoSJB-UNP alliance talks break down due to senior UNPer’s intervention – SJB Chairman
-
Features5 days agoThe Economy, Executive Presidency, and the Parliamentary Election
-
Editorial7 days agoThrowing ministers behind bars
-
Sports6 days agoAbheeth takes five but St. Anthony’s ahead
-
News5 days agoRajeev Amarasuriya to run for BASL President 2025/26
-
Business3 days agoADB delegation meets President Dissanayake, pledges continued support for Sri Lanka’s economic development