This acquisition will help Coats by leveraging its existing network of acquired companies and provide solutions to curb fabric waste.
UK-based global thread manufacturer Coats Global Services (CGS) has acquired Singapore's cloud-based digital applications provider Threadsol for $12 million. This acquisition will support the company's growth strategy to collaborate with companies that have unique capabilities that can leverage the existing network built by its acquisition spree.
Rajiv Sharma, Group CEO of Coats, said,
"ThreadSol is an exciting acquisition that supports a key aspect of our growth strategy: to build an innovative software solutions business for the apparel and footwear industries. We will be able to draw upon our demonstrable track record of successfully integrating bolt-on companies."
The announcement comes right after Coats making a key investment in Twine, an Israeli-based technology start-up, which has developed a digital thread dyeing system. ThreadSol joins CSG's other acquisitions including US-based Patrick Yarn Mill, Spanish company Gotex and UK-based FRS.
Manasij Ganguli, Co-founder of ThreadSol said, "We will be able to leverage Coats’ unrivalled global footprint and strong corporate brand and have the opportunity to collaborate with and gain additional levels of expertise and insight from a global industry leader."
Founded in Delhi in 2013, ThreadSol focuses on fabric usage optimisation in apparel manufacturing and helps customers reduce fabric waste and cost using algorithms built on artificial neural networks. It helps to optimise purchasing and consumption of fabric by real-time data analytics through IoT devices.
ThreadSol has development centres across India and representative offices in Bangladesh, China, Indonesia, Sri Lanka and Vietnam. With 100 employees, it services 130 businesses in 13 countries and says that it plans more than 1.5 billion garments every year through its platform, and claims sales worth $2.3 million in 2018.
The company's product is aimed at reducing costs and waste "through cut-plan process and fabric roll utilisation", which helps solve a pressing and complex problems in the apparel supply chain.