Located in a small town in Cochin is Kitex Garments Ltd. which is into 100 per cent exports of cotton garments, especially infant wear, to the US and European markets. The children wear market is one of the most profitable in the global apparel industry. The company has two segments – garments and fabric. In FY16-17 the garment segment contributed 84 per cent of the sale and fabric 16 per cent.
“During 2016-17, our company has recorded a revenue of Rs. 54,590.13 lakhs from operations, which is on par with Rs. 54,581.67 lakhs in the previous year. Profit before taxation is Rs. 14,270.11 lakhs. Net profit after tax is Rs. 9,254.08 lakhs”, says Mr. Sabu M. Jacob, Chairman & Managing Director of the company.
Kitex 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 capacity. It is a vertical set-up with knitting and processing of fabrics, while finished garments are done in-house. The facility covers an area of 180,768 sq. ft., one of the largest in the world under one roof. The process line is equipped with the digital dispenser system for error-free, automatic and computer-controlled preparation of colour guidelines, high quality knitting machines and modern dyeing, printing and finishing machines with cutting-edge technology. Its garmenting unit uses the latest machinery for pattern Computer Aided-Design (CAD), plotting and grading. It has automatic spreader machines which enhance the speed of spreading and automated cutting machines that enable faster and precision cutting.
The factory is equipped with the latest sewing machinery that ensures stain-free, quality sewing. The state-of-the-art spectrophotometer ensures electronic colour reading and transmission. The plant produces knitted fabrics of exceptional quality, and is well appreciated and recognized by reputed childrenwear apparel brands in the US and Europe.
The company is investing in heat recovery systems with the objective of increasing its process efficiencies and thus decrease fuel consumption. Reduction in thermal and air pollution, equipment sizes and thereby reduction in auxiliary energy consumption are the indirect benefits.
Design Studio
In order to increase its brand equity in the US markets, Kitex opened a world-class design studio in New Jersey in April last. The studio gives designing services based on its unique requirements purely as a value addition. This enables the company’s clients in cost saving and thereby better its business relations with them. Further Kitex has started direct business with Walmart and Target.
Major developments in FY16-17
Kitex USA LLC, a 50-50 joint venture between KCL and KGL, which signed a brand-licensing agreement with Lamaze International for the sale of infant wear in the US and Canada under the Lamaze brand, has commenced its business. It is already the exclusive supplier of Lamaze infant wear for children up to five years in the US and Canada. The contract validity is till December 31, 2020, extendable for five years.
Own Brand “Little Star” has been launched in 2016. The brand is envisaged as a mass market product in the US and Canada. The management also plans to launch the brand through the online route.
During the year, Kitex received order confirmations from major infant garment buyers like Buy-Buy Baby, Ross Stores, Amazone, Target and Walmart which together can contribute a major part of its turnover in the coming years.