Prada set to invest £53m to boost production capacity
Prada is set to spend £53 million (£60 million) on industrial capital investments this year to strengthen its grip on the supply chain and rival its competitors.
According to the luxury houses’ Group Industrial Director, a large portion of the investment will be used to double the size of its knitwear factory in Torgiano, in the central region of Umbria.
In order to strengthen its supply chain, Prada is also looking at possible small acquisitions of manufacturers. Industrial Director Massimo Vian said "We have our targets", adding that an acquisition is less likely in the leather sector, where the group is already well situated.
The Prada Group saw full year 2022 revenues rise by 21% year-on-year to £3.7 billion (€4.2 billion), largely driven by "strong brand momentum". For the financial year ending 31 December 2022, retail sales were up by 24% year on year to £3.3 billion (€3.7 billion).
Most of this year’s investments will be absorbed by the expansion and the acquisition of new technologies.
The investment plan is designed to reinforce the group’s strong industrial strategy, one of its distinct competitive advantages. It will also guarantee greater agility and a reduction of time-to-market, as well as support the growth trajectory highlighted by Prada Group’s latest results.
Vian told journalists that around 10% of Prada clothing is produced in-house, a percentage that rises to approximately 30% in leather goods and approximately 50% in footwear.
