Sportking India approves three expansion deals in one board meeting | North Desk
Ludhiana-based spinning major approves two acquisitions and a greenfield plant in Odisha in a single sitting — signalling a decisive push up the textile value chain
North Desk Bureau
Chandigarh, May 18
In a board meeting that lasted four and a half hours over the weekend, Sportking India Limited approved deals that could reshape how the Ludhiana-based company operates — and what it makes.
The company’s directors, meeting on May 16, greenlit the acquisition of a majority stake in Marvel Dyers and Processors Private Limited, a fabric dyeing and finishing firm; approved a slump sale acquisition of the manufacturing business of Sobhagia Sales Private Limited, which makes and retails readymade garments; and confirmed financial closure of its greenfield spinning plant in Odisha. All three decisions landed in one afternoon.
Sportking India Strategy
For a company that has spent 35 years primarily in spinning — converting raw cotton into yarn — the direction of travel is unmistakable. Sportking is moving downstream, into the businesses that turn yarn into finished fabric and clothing.
The strategic logic is straightforward. Yarn is a commodity. Margins are thin and heavily sensitive to cotton prices and power costs. Dyeing, finishing, and garment manufacturing sit further up the value chain, carry better margins, and — critically — give a spinner direct access to the brand and buyers who actually determine what gets made.
Marvel Dyers, incorporated in 1986, posted a turnover of approximately ₹55.8 crore in FY25. Sobhagia Sales, the garment manufacturer, is a larger operation — turnover of ₹99.7 crore in FY25, though down from ₹127 crore in FY23, suggesting some softening in the business. Both transactions are classified as related party deals, with the promoter group having interests in both entities. The company says both are being done at arm’s length, with KPMG engaged as independent advisor.
Pricing for both acquisitions has not yet been determined. The board has approved the transactions in principle — due diligence, valuation, and definitive agreements remain to be completed. Consideration may be paid in cash, shares, or a combination.
Meanwhile, the Odisha plant — a greenfield facility that will add 1.5 lakh spindles to Sportking’s spinning capacity — has moved from planning to construction. Financial closure has been achieved, and work at the site has begun. Odisha has emerged as a favoured destination for textile manufacturers seeking lower power costs and state government incentives, and Sportking’s move fits a broader pattern of Punjab-origin textile companies diversifying their manufacturing geography.
Dividend announced
Sportking India: The board also declared a final dividend of ₹1 per equity share for FY26 — face value of ₹1 — amounting to ₹12.7 crore, subject to shareholder approval at the AGM. Full-year net profit stood at approximately ₹119.7 crore on revenue of ₹2,494 crore, a modest improvement over FY25.
One footnote from the financial disclosures: a fire at Sportking’s Bathinda plant in November 2025 caused a loss of ₹31.7 crore, which was netted against insurance recoveries. No casualties were reported. The net financial impact was described as not material.
The share price of SPORTKING ended at Rs 145.34–down 1.67 per cent from its previous close–on Monday.
