Kewal Kiran Clothing well set for a leap forward

Kewal Kiran Clothing Ltd.’s journey in the last decade has been very encouraging despite the sector facing several challenges all along. With strong fundamentals, an asset light business model and virtually debt-free status of KKCL, the company is well-positioned for the future.

The dual impact of higher product prices in 2011-12 driven by excise duty and high cotton prices along with continuing headwinds in the form of mounting inflation and high interest rates have impacted consumer spending.

The slower volume growth was partially offset by higher prices, and sales of the company in 2011-12 stood at Rs. 301.90 crores, a growth of approximately 28 per cent over previous year, while profit after tax at Rs. 52.14 crores registered a marginal increase of 12.78 per cent.

Mr. Kewalchand P. Jain, KKCL Chairman & Managing Director, said: “As we move towards our vision of achieving a turnover of Rs. 1,000 crores, we firmly believe that both man and machine are important and have to be robust to win the race.

We have endeavoured to build an organisation that is capable of reaching high speeds but at the same time has internal strength and construct to survive potential collisions without fatally. The number of retail stores has increased from 31 in 2005-06 to 252 as on March 31, 2012”.

Jeans continue to be the largest and the flagship product of KKCL comprising 56 per cent of net sales. Sales of jeans continued to register a healthy growth of 25 per cent over the previous year. Sales of shirts and T-Shirts grew by 11 per cent and 32 per cent respectively and represented 18 per cent and four per cent of the net sales respectively. Trousers accounting for 11 per cent of the sales declined by three per cent.

Expanding presence across India

KKCL has extended its reach across the country through various retail formats. Multi Brand Outlets (MBOs) continue to dominate the distribution strength of the company and also provide an unparalleled and diverse footprint across the country. MBOs account for the largest portion of net sales at 58 per cent and recorded a growth of 24 per cent over previous year.

The apparel industry is a very dynamic and fast changing segment. There can be sudden high demand for a garment worn by a celebrity or showcased at a fashion-show. This rapid change in fashion and demand requires introduction of technology which can improve designing and help achieve operational efficiency. As a result, KKCL has introduced multiple award winning software from Tukatech.

TUKAcad will allow each pattern maker to make and grade patterns with better accuracy in a shorter period. SMARTmark will allow marker makers to maximise fabric usage in the cutting room. TUKA3D will help create realistic 3D prototypes that demonstrate color, texture, fit, and movement in complex clothing patterns, reducing the new product development time and allowing any company to be more innovative by offering more choices to consumers.