Investment to double capacity underway
Kitex Garments Ltd., a global leader in infant garments, aims to achieve a 20 per cent growth in FY16-17 by expanding its customer base and increasing the business share with its existing customers. To achieve this goal the company is in the process of increasing its manufacturing capacity.
Kitex is planning to invest about Rs. 10 crores this year to upgrade its manufacturing & information technology wing.
In FY 2015-16 the company performance has been reasonably good in terms of income. It achieved a total income of Rs. 566 crores as against Rs. 525 crores in the previous year.
Established in 1992, Kitex Garments is into 100 per cent exports of cotton garments, especially infant wear. It exports its products to the US and European markets. The vertically integrated manufacturing plant makes infant wear as well as fabrics.
The company intends driving its next level of organic growth by expanding markets and online and offline marketing channels, backed by capacity expansion and enhanced technological capabilities.
In the process of launching its own infantwear brand “Little Star” in the US market by October next, the company also entered into a licence agreement in September 2015 through KITEX USA LLC with Lamaze International Inc., USA, for manufacture and supply of infant garments in the US and Canada.
Kitex USA LLC, a 50:50 joint venture between KCL and KGL, has signed a brand-licensing agreement with Lamaze International for the sale of infant wear in the US and Canada under the Lamaze brand. Kitex USA LLC will be the exclusive supplier of infant wear. The contract is valid till December 31, 2020, and is extendable for five years.
The company further plans to upgrade its automation of sewing production in 2016-17 in order to increase productivity and output capacity without increasing the manpower.
With regular capex for improvement of technology and infrastructure it aims to upgrade its current facilities so as to expand its capacity from 0.55 million units to 1.1 million units per day. It is a vertical set-up with knitting and processing of fabrics, until finished garments are done in-house.
The facility is a 240 meters long and 70 meters wide that covers an area of 6 lakhs sq.ft., one of the largest in the world under one roof. The process line is equipped with digital dispenser system for error-free, automatic and computer-controlled preparation of color guidelines, high quality knitting machines, most modern dyeing, printing and finishing systems that use cutting-edge technology.
Its garmenting unit has the latest machinery for pattern computer-aided design (CAD), plotting and grading. It has automatic spreader machines that enhance the speed of spreading and automated cutting machines that enable faster precision cutting. The factory is equipped with latest sewing machinery to ensure stain-free quality sewing, as well as state-of-the-art spectrophotometer for electronic color reading & transmission.
The plant produces knitted fabrics of exceptional quality, and is well appreciated by reputed childrenwear apparel brands in the US and Europe.