KITEX has set an ambitious growth target with a mission for 2025. The company has projected a turnover of Rs. 2,165 crores by 2024-25 against Rs. 560 crores of 2017-18.
To achieve this, Kitex has on hand plans for expansion and diversification of products. As a first step, the company is planning to add production capacity across the value chain, which includes expansion of the knitting capacity and the processing capacity to 80 tons each.
Kitex Garments Ltd. (KGL), incorporated in 1992, is managed by Mr. Sabu Jacob. The company is a part of the larger Anna-Kitex Group, which has diversified interests in aluminium vessels, home appliances, spice trading and textiles. KGL, along with its group company KCL, which holds a 15.47% stake in the company, manufactures and exports infant wear to apparel retailers based out of the US and other developed markets. The company has a fully integrated manufacturing facility at Kizhakkambalam (Kerala) with a facility to manufacture 2.7 lakh pieces per day. To diversify its business profile and reduce dependence on its key customers, the Kitex Group established a marketing and design unit based out of the US in 2015, held equally by KGL and KCL.
The baby clothing market accounts for 33% of the aggregate global children wear market. With a market size of $60 billion, it is expected to grow at a CAGR of 4.4% to reach $67 billion by 2019.
Kitex has proposed cumulative capital expenditure of Rs. 910 crores for the period 2019-25 towards significant addition of capacities across the value chain, including knitting, processing and garmenting.
As for diversification, the company is planning to venture into manufacturing and sale of new products for the infants category, which includes products like socks for children, baby diapers and baby wet wipes.
Kitex is also seriously considering vertical integration of its manufacturing value chain with the setting up of a cotton spinning mill for yarn production with a capacity of 80 tons per day. It is also setting up manufacturing facilities for ancillary materials such as cartons, tapes and paper tags.
As part of the strategic future growth initiative, Kitex is planning to increase revenues by promotion of its own brand, Little Star, and a licensed brand Lamaze. It is also aiming at growth in private label business with the existing clients.