KewalKiran Clothing Limited (KKCL), a prominent player in the fashion industry, has made headlines with its strategic acquisition of a 50 per cent stake in Kraus Casuals Private Limited (KCPL), signaling a bold move into the Women’s Denim & Casual Wear category. The acquisition, valued at Rs 166.51 crores, encompasses both primary infusion and secondary purchase, amplifying KKCL's market footprint and reinforcing its dominance in the Indian and UAE markets.
Expanding into women’s denim & casual wear
KCPL, operating under the brand 'Kraus jeans', has carved a niche for itself in manufacturing, selling, designing, and exporting women's clothing, with a focus on casual and denim wear for women, teens, and kids. This strategic move sees KKCL venturing into a new realm, broadening its portfolio and enhancing its market presence.
The acquisition comes on the heels of a Business Transfer Agreement (BTA) between KCPL and Oriental Trading Company (OTC). Under this agreement, the partners of OTC, namely Ravi Punjabi, Sunil Punjabi, Sushil Punjabi, and Atmaram Punjabi, are set to transfer the partnership's business as a going concern to KCPL, paving the way for seamless integration and operational continuity.
With over 1,000 large format stores in its arsenal, including Lifestyle, Pantaloons, Reliance, and Shoppers Stop, Kraus augments KKCL's extensive network of 488+ Exclusive Brand Outlets and 80+ Distributors. This synergy not only strengthens KKCL’s position but also enhances its accessibility across various retail platforms, ensuring wider market penetration.
Leadership voices
Kewalchand Jain, Chairman & Managing Director of KKCL, expressed enthusiasm over the acquisition, emphasizing its significance in aligning with the company's strategic vision. He anticipates the move to be earnings per share accretive, fostering enduring value for shareholders in the foreseeable future.
Hemant Jain, Joint Managing Director of KKCL, hailed Kraus' founders for their prowess in establishing a reputable brand in the women’s denim &casual wear segment. He highlighted the acquisition as a catalyst for KKCL's evolution into a comprehensive casual wear brand for families, leveraging Kraus' expertise and market positioning.
Ravi Punjabi, Director of Kraus Casuals Private Limited, lauded the partnership with KKCL, citing it as a pivotal opportunity to expand their market reach and elevate the Kraus brand. He expressed confidence in KKCL's resources and knowledge, envisioning a synergistic collaboration that propels Kraus to new heights.
KKCL's acquisition of a 50 per cent stake in Kraus Casuals Private Limited marks a strategic maneuver aimed at reinforcing its market leadership and diversifying its product offerings. With a shared vision for growth and innovation, this partnership sets the stage for a dynamic synergy in the Women’s Denim & Casual Wear landscape, promising enhanced value for stakeholders and consumers alike.
