Massive expansion underway
Long-term business vision is all about having an expanded and a more fulfilling future in mind. A vision for growth is all about doing the right things today. The right ingredients in terms of strategic actions will ensure a successful future, i.e., growth in the future is an outcome of today’s actions.
At Kitex Garments Ltd., the management has been moving ahead by keeping the future in mind. With a high brand equity in infant apparel manufacturing, the company is in the cusp of a transformation for meeting the emerging global demand for high quality infant apparel. The Kitex vision is to become the No.1 infant apparel manufacturer in the world. It has set a growth target to achieve a projected turnover of Rs. 2,000 crores + by 2024-25 as against Rs. 607 crores of 2018-19.
Established in 1992 Kitex Garments is into 100% export of cotton and organic cotton garments, especially infants wear. The company exports its products to the US and European markets. The vertically integrated manufacturing plant makes infants wear as well as fabrics. Infant apparels manufactured by it are available in Australia, Austria, Brazil, Canada, China, France, Germany, Liberia, India, Indonesia, Israel, Japan, Mexico, Poland, Saudi Arabia, Switzerland, the UAE and the US through the outlets of its clients.
Diversification
As for diversification, the company is planning to venture into manufacturing and sale of new products in the infant apparel category, which includes products like socks for children, baby diapers and baby wet wipes. It is planning to add production capacity across the value chain, which includes expansion of the knitting and processing capacity to 100 tons each.
At the operational level vision 2025 translates into technological and operational expansion with organic diversification of the product portfolio. 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 100 tons each.
Kitex is also planning to venture into manufacturing and sale of new products in the infant apparel category, which includes products like socks for children, baby diapers and baby wet wipes. The company is also considering strengthening of its vertical integration of its manufacturing value chain with the setting up of a cotton spinning mill for yarn production with a capacity of 100 tons per day.
Plans are also afoot to set up a manufacturing facility for ancillary materials such as trims & packages, which includes cartons, tapes, paper tags, labels, hangers, woven tags, etc.
Mr. Sabu M. Jacob, Chairman & Managing Director, said: “We have been growing fast. From a revenue of Rs. 202 crores in 2009 we have grown to Rs. 607 crores in FY19, over a period of 10 years. During the same period our profit before tax grew from 8% to 21%. Over the period we also progress in terms of our technological, operational, human resources, products and social capabilities. Today we are the 2nd largest infant apparel manufacturer in the world”.
He added: “We are a supplier of choice to world’s leading apparel brands and retail chains. During our year on year progression we had faced multiple external and internal challenges. We have been able to surmount most of them with our avid focus on our vision to be the No.1 infant garment manufacturer in the world. Various time-bound expansion plans under our vision 2025 are ongoing and I am confident of achieving these milestones”.
Referring to the global scenario, Mr. Sabu Jacob observed: “When it comes to the current global scenario with respect to infant apparel manufacturing, it’s mostly advantage India. We are a stable and growing economy with a strong democratic system. Compared to many emerging economies, our political, social and economic factors are stable. We are quick in adopting global best practices and technology scaleup. Across the globe, especially with the developed world, we have a warm and cordial relations to strengthen our trade relations. Kitex is the supplier of choice to the world’s leading apparel brands and retail chains. During our year on year progress we had faced multiple external and internal challenges. We have been able to surmount most of them with our avid focus on our vision to be the No.1 infant garment manufacturer in the world and the resultant management actions to achieve our goals”.
Manufacturing technology
Having an integrated and traceable value chain which meets various global standards at various stages of the product supply chain is the key global differentiator at Kitex. The company purchases yarns, dyestuffs and chemicals from approved sources. They are tested as per the Oekotex Standard 100 Class-I and GOTS Organic standards.
The dye recipes, dye dispensing and yarn dyeing are done using robotic technology for accuracy and quality. Kitex uses the most advanced knitting machinery, including the fully robotised yarn dyeing machine to convert yarn into greige fabric which is bleached using the advanced German machinery and further dyed using the colour pad technology. Dyed fabrics are washed and printed on modern rotary printing machines.
The fabrics thus produced confirm to all the product safety standards and meet the strict international quality norms (CPSIA). Fabrics are further cut by using automated spreading and cutting machines.
The IT-enabled sewing procedure takes the process to the final product stage which conforms to the Oekotex Standard 100 Class1, GOTS and CPSIA. Kitex has invested in special software in production which monitors hourly individual operator efficiency.
The company has been allotting regular capex for improvement of technology and infrastructure and is in the process of upgrading its current facilities so as to expand its capacity. It is a vertical set-up with knitting and processing of fabrics until finished garments are done in-house. The facility is a 350,000 sq. ft. garmenting factory and manufactures fabrics in its 240 meters long and 70 meters wide process house covering an area of 200,000 sq. ft. The process line is equipped with the digital dispenser system for error-free, automatic and computer-controlled preparation of color guidelines, high quality knitting machines, most modern dyeing, and printing and finishing machines that use cutting-edge technology.
Kitex’ garmenting unit uses the latest machinery for pattern Computer- Aided-Design (CAD), plotting and grading. It has automatic spreader machines that enhance the speed of spreading and automated cutting machines that enable faster precision cutting.
The factory is equipped with the latest sewing machinery that ensures stain-free, quality sewing, and the state-of-the-art spectrophotometer ensures electronic color reading & transmission. The plant produces knitted fabrics that are of exceptional quality well appreciated and recognized by reputed childrenswear apparel brands in the US and Europe.