Khadim India’s Q4, FY24 net profit declined by 76 per cent to Rs 1 crore from Rs 4 crore in the corresponding quarter in the previous year.

The company’s revenues also declined by10 per cent during the quarter to Rs 144 crore from Rs 159 crore in the previous quarter ending March 2023.

For the full financial year 2024, Khadim India registered a 64 per cent Y-o-Y decline in net profit to Rs 6 crore, with annual revenues of the comapny amounting to Rs 615 crore.

The company’s earnings report attributes the decline in net profit primarily to a one-time profit earned from the disposal of immovable properties in the previous year.

However, despite this decline, Khadim India continued to boost its retail network with 94 new stores in FY24, bringing the company’s total store count to 868. The company also strengthened its distribution network by adding 81 new distributors, increasing the total to 753.

One of India’s largest footwear retailers in terms of exclusive stores, Kolkata-based Khadim India currently operates 846 retail stores, supported by a robust network of 700 distributors.

Parent company of fashion brands Indya and FabAlley, High Street Essentials (HSE) has secured Rs 50 crore in equity and debt funds to expand its premium occasion wear range and establish its presence in the wedding wear market.
The funding round was led by Sangita Jindal, Chairperson, JSW Foundation with additional investors being the family offices of the SRF Group, Krishna Bodanapu of Cyient Technologies, and Timmy Sarna from Pure Home Living.
Indya has already forged strategic collaborations with renowned Indian designers such as Rohit Gandhi, Rahul Khanna, Varun Bahl, Ashish N Soni, and Nikhil Thampi. The brand currently operates 12 exclusive brand outlets in 8 cities and is available in 150 large-format retail outlets, including Lifestyle, Shoppers Stop, Centro, and Ethnicity. Its global footprint is expanding with a second store in Malaysia and other planned outlets in the US and South Africa within the next 18 months. However, the majority of Indya’s sales come from its international direct-to-consumer e-commerce business.
The brand is expected to register generate maximum growth from its international e-commerce business.It also plans to enter new markets and invest in on-ground branding and marketing initiatives. Additionally, Indya aims to achieve significant growth from its large wedding stores. It plans to open over 100 such wedding stores across the country over the next few years.
In this financial year particularly, the brand aims to set up 10 new wedding stores to capitalise on the $15 billion wedding wear market in India.

Kewal Kiran Clothing (KKCL) has forayed into the women’s denim segment with the acquisition of a 50 per cent stake in Kraus Casuals, the owner of women’s denim wear brand ‘Kraus,’ for Rs 167 crore ($20 million).

The acquisition will enable KKCL to expand its presence in India and the UAE. According to Kewalchand Jain, Chairman and Managing Director, KKCL, the acquisition aligns with the company’s vision to expand and diversify its denim and casual wear portfolio. It is a testament to the company’s commitment to growth and innovation.

Ravi Punjabi, Director, Kraus Casuals, adds, KKCL proves to be a perfect partner to Kraus Casuals for expanding market presence and growing the brand’s operations. The company’s expertise in brand building, marketing and distribution ensures complete utilisation of Kraus’ true potential.

Currently operating through eight exclusive brand outlets, Kraus is also present in India in over 1,000 large format stores including Lifestyle, Pantaloons, Reliance, Shoppers Stop, Lulu, etc.

As against a net profit of Rs 2 crore registered during the corresponding quarter previous year, VIP Clothing recorded a net loss of Rs 7 crore in Q4, FY24 that ended March 31, 2024
The company’s revenue for the quarter also declined by 37 per cent to Rs 32 crore, down from Rs 52 crore in the corresponding period of the prior fiscal year.

For the entire FY 2024, VIP Clothing’s revenues declined to Rs 183 crore while it recorded a net loss of Rs 13 crore. The company’s performance during the quarter and the entire year was impacted by subdued market conditions. In future, it aims to launch new products aligning with customers’ needs. This will help drive positive product uptake and boost demand for its products.

Entering a transformative era, VIP Clothing delivers best-in-class products to expand the power of its brand recall. This will yield strong financial results in the coming quarters, the company hopes.

A specialist in the manufacturing, marketing, and distribution of men’s and women’s innerwear, VIP Clothing owns brands like VIP, Frenchie, Feelings, and Leader.

The luxury apparel market in India has been on a significant upswing in recent years. As per a report by The Statesman, the market’s growth is being driven by the presence of both luxury stores such as Louis Vuitton, Chanel, and Gucci, and renowned local brands like Sabyasachi, Tarun Tahiliani, and Ritu Kumar.
A growing number of affluent individuals are driving the demand for high-end products in the country, transforming luxury fashion into a multibillion-dollar industry in the country. Especially popular in metropolitan areas, these luxury brands are also being sought by affluent customers from smaller cities. The expansion of digital platforms offering customised services and tailored solutions is also broadening the customer base for these brands.
Capitalising on the lucrative Indian wedding market, luxury fashion brands are also driving the demand for bespoke and exclusive apparel amongst consumers. However, the production of luxury apparel in India encounters several challenges. One of these includes the high prevalence of counterfeit luxury goods at lower prices leading to brand dilution. Additionally, the customer base of luxury brands in India is scattered across the country with many Indian consumers also being price-sensitive. Also, some affluent Indians prefer to shop abroad, further widening the gap between these luxury brands and the local market.

Aditya Birla Fashion Ltd (ABFRL), a leading Indian apparel company, presented a financially perplexing picture in the March quarter of FY24.

Losses mount despite revenue rise

ABFRL's Q4 FY24 results were a cause for concern. The company reported a net loss of Rs 266.35 crore, significantly wider than the loss of Rs 194.54 crore in the same quarter last year. This paints a grim picture of mounting losses. However, there's a twist -- revenue grew by 18.3 per cent year-on-year. In fact, the total revenue of the company stood at Rs 3,406.65 crore, rising 18.29 per cent from Rs 2,879.73 crore last year. Earnings before interest, tax, depreciation and amortization or EBIDTA for the quarter was at Rs 283.7 crore growing by 47.1 per cent. And EBITDA margins have improved by 8.3 bps YoY vs 6.7 YoY. So, why the loss despite a rise in sales?

Rising costs and integration woes

Several factors seem to be behind the losses. The company statement acknowledges ‘negative operating leverage on the back of sluggish sales’, implying rising costs outpaced revenue growth. Additionally, the recent acquisition of TCNS Clothing Company might be causing integration challenges, impacting profitability.

The ABLBL brand basket includes lifestyle brands like Louis Phillippe, Van Heusen, Allen Solly, Peter England, and Simon Carter. Youth western brands like American Eagle and Forever 21. Sportswear brand Reebok and innerwear business operating under the Van Heusen brand.

As per reports, lifestyle brands recorded 2 per cent YoY growth, reaching Rs 1,564 crore; EBITDA was Rs 305 crore, a 36 per cent YoY growth due to better gross margins and cost management. EBITDA margin rose 19.5 per cent, up by 480 bps compared to the previous year. All these brands are focusing on upgrading products, innovations, and expanding into new high-quality categories as part of their premiumization efforts.

On the other hand American Eagle recorded another quarter of strong performance with 27 per cent sales growth, led by strong distribution expansion. The brand opened six new stores in the quarter to exit at 65 stores, along with being available across 120+ departmental doors.

Bright Spots, segment growth and strategic moves

Despite the headline loss, there were positive aspects. ABFRL's Madura Fashion & Lifestyle segment, with popular brands like Peter England, witnessed robust growth of 30 per cent. This indicates continued customer demand for their established brands. Furthermore, ABFRL recently announced a strategic demerger, separating its innerwear business into a new entity. This move, according to management, aims to create "two separate growth engines", potentially boosting profitability in the long run.

ABFRL's management is confident about the company's future. Kumar Mangalam Birla, CEO, stated in an earnings release, "The strategic de-merger of ABFRL is paving the way for the creation of two separate growth engines...". This de-merger refers to the separation of the company's innerwear business into a distinct entity. Management believes this restructuring will improve operational efficiency and profitability.

However, analysts remain cautious. While acknowledging the positive aspects, they emphasize the need for ABFRL to control costs and streamline operations. The success of their restructuring efforts and the impact of the TCNS Clothing integration will be crucial factors to watch in the coming quarters. ABFRL's Q4 FY24 financials are a story with an uncertain ending. The losses raise concerns, but growth in core segments and strategic moves offer a glimmer of hope. Investors should closely monitor ABFRL's progress in the coming quarters to see if they can successfully navigate the current headwinds and translate growth into profitability.

A brand by Fablestreet, Pink Fort has launched a new summer collection, titled ‘Indian Craft,’ that while paying homage to traditional printing techniques embraces modern Indian silhouettes.
Aiming to reimagine traditional Indian clothing for contemporary women, Pink Fort allows them to celebrate their modern sensibilities alongside traditional Indian ethos, says Neha Saluja, Design Head, Pink Fort.
The collection draws inspiration from three Indian handicraft techniques: Dabu, Ajrakh, and Batik. Dabu, deeply rooted in the heritage of Rajasthan, showcases intricate handblock prints in vibrant hues. Each outfit, meticulously crafted by artisans, tells a story of timeless beauty, blending seamlessly with modern geometric and floral patterns designed by in-house artists.
Renowned for its captivating layering of prints, Ajrakh captures nature’s essence with mesmerising visual effects. This age-old handblock technique merges with contemporary designs to create a collection that celebrates the harmony between traditional craft and modern aesthetics.
The Batik collection is where the fusion of art and culture comes alive, with meticulous wax application creating delicate patterns that dance with light and shadow. Each piece serves as a canvas of intricate motifs and vibrant hues, a testament to India’s rich craftsmanship interwoven with modern expression, says Saluja.
Indian Craft is Pink Fort’s first collection to unite these three Indian textile arts in one place. Each piece celebrates Indian heritage and artisanship, with fabrics handmade by skilled artisans. The collection features a blend of earthy and modern colors, ranging from classic whites and blues to blacks, reds, pinks, yellows, and browns. It includes kurtas, kurta sets, tops, and dresses with breezy silhouettes and cuts.

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.