Sri Lanka’s Hela Clothing secures private capital infusion of Rs.1.2Bn

Nov 27, 2018 (LBO) –  Hela Clothing Group, an apparel manufacturer has secured a capital infusion of 1.2 billion rupees through a mix of shareholder and new private equity investment funds.

The funds are from a private consortium whose lead investor has a wide portfolio including private equity investments in the fashion and retail space, the Company said in a statement.

“The focus for the past twelve months was to right-size the business and drive free cash flow generation through operational excellence, prudent cost management together with customer and supply chain optimisation strategies,” A. R. Rasiah, who will assume the role of Chairman soon said.

“With the business now having made significant progress in those areas the focus is now around balance sheet strengthening both through raising equity and building cash reserves through operation.”

Rasiah, the former Finance Director at Nestle Lanka PLC, former Senior Director of Nations Trust Bank PLC, former Chairman of Atlas Axillia (Pvt) Ltd and director at many other listed and non-listed entities, has been a long-standing director of the company and will now assume the role of Chairman thus continuing to bring a strong hand to commercial strategy, governance and the finances of the group.