KOCHI: Kitex Garments Ltd, the company listed on both National Stock Exchange (NSE) and Bombay Stock Exchange, (BSE) has incorporated a wholly owned subsidiary in the name of Kitex Kidswear Ltd (KKL) with a paid up capital of Rsone crore and an authorised capital of Rs25 crore.
The company has said in its filing to the stock exchanges that the new subsidiary company has been set up to carry out infant wear business and that KKL’s business will be similar to the main line of business of the listed entity for separate labels.
Kitex had already announced the plan to float two subsidiaries a few months back following a go-ahead from the board on the project. The board had said at that time the company would invest Rs400 crore (Rs200 crores each) in its proposed two wholly owned subsidiary companies, to boost the manufacturing capacity of the group and thus to meet the rising future demand.
The said investment, according to the company, will be met from internal accruals and borrowings. The board had also appointed KPMG to take care of the implementation of the project.
Kitex Group already has an associate company, Kitex USA LLC, which was incorporated in the US in 2015 with joint investment from the company, Kitex Childrenswear Ltd (KCL), to support and facilitate designs for US market customers, according to the group statement on the associate venture.
Kitex USA, which posted a loss of Rs6.47 crore for 2017-18, is into marketing the licence brand, Lamaze and its own brand, Little Stars infantswear in the US and Canada.
Kitex is into the business of manufacturing infant garments and is currently the world’s leading manufacturer of specialized infant apparels for 0-2 year-old kids. The company’s products are sold in over 18 countries through clients such as Gerber, Walmart, Amazon, Mothercare, Carters, The Children’s Place, Kohl’s, buybuy baby, Ross Stores and Target.