The footwear maker said that the said acquisition will enable the company to expand its existing capacity for the manufacturing of semi-finished goods (sole and /or upper) and assembly of footwear.

The acquisition has been made for a cash consideration of Rs 16.70 crore.

Offering details on the said capacity addition, Campus Activewear stated that its existing annual manufacturing capacity of sole -10.8 million pairs, upper 4.2 million pairs and assembly 34.8 million pairs. The company's capacity utilization level currently is approximately.

The company proposes to raise the annualized capacity of sole by 7.2 million pairs, upper by 3.6 million pairs and assembly by 3.6 million pairs.

The company said that is undertaking the said capacity expansion to meet business growth and to increase backward integration.

"Said capacity addition plans are tentative and to be reviewed on a periodic basis,” Campus Activewear said in a statement.

The company expects to add the aforementioned capacity within a period of one and half years from April 2023. The project requires an investment of Rs 90 crore and the same would be funded by a mix of term loan and internal accruals.

Campus Activewear is India's largest sports and athleisure footwear brand in terms of value and volume.

The company's consolidated net profit declined 11.7% to Rs 48.31 crore in Q3 FY23 from Rs 54.72 crore posed in Q3 FY22. However, revenue from operations rose 7.4% to Rs 465.62 crore in the quarter ended 31 December 2022 as against Rs 433.55 crore in the quarter ended 31 December 2021.