Rs.3,000 Crore Investment to Achieve Daily Production Capacity of 1.1 Million Garments
Kitex Garments Limited, under the visionary leadership of Mr. Sabu M. Jacob, Chairman and Managing Director, has become synonymous with excellence in the infant and children’s wear segment. Mr. Jacob sheds light on the company’s journey, its current expansion plans, and how Kitex remains at the forefront of innovation while staying committed to ethical practices and sustainable growth.
Synergizing Innovation with Expertise
“We have always strived to fuse innovation with deep industry expertise to create an organization that excels in productivity, efficiency, and value creation,” Mr. Jacob shares. Kitex’s operational mantra of continuous improvement ensures they constantly push boundaries, delivering enhanced value to their customers.
Mr. Jacob explains, “We’ve made substantial investments in both technology and human capital to drive sustainable growth. Our expansion into Telangana, particularly in Warangal and Sitarampur, is a crucial milestone in our growth strategy. The first phase is underway, and by December 2024, commercial production is expected to commence. With a total investment of Rs. 3,000 crore across both phases, we aim to produce around 11 lakh garments daily, contributing to a projected annual turnover of Rs. 3,000 crore.”
Kitex, since its inception in 1992, has broadened its global footprint as one of the world’s largest manufacturers of cotton and organic cotton garments for infants and children aged 0-24 months. The company operates on a fully integrated ‘Yarn to Garments’ model, primarily catering to major clients in the USA and Europe.
Navigating Challenges with Resilience and Growth
Reflecting on Kitex’s journey, Mr. Jacob quotes, “Strength and growth come only through continuous effort and struggle.” From humble beginnings in a small village near Kochi to becoming a global giant, Kitex has exemplified this ethos.
Mr. Jacob adds, “Despite persistent challenges, our resilience, passion, and commitment have enabled us to convert every obstacle into an opportunity. We are now further strengthening our production capabilities with a backward integration strategy, establishing a ginning facility to manage the entire production process—from raw cotton sourcing to garment manufacturing. This will allow us to enhance product quality, reduce costs, and bolster our market position.”
Fostering a Holistic Work Environment
Kitex attributes much of its success to its workforce, and Mr. Jacob emphasizes the company’s commitment to employee well-being. “Our employees are the cornerstone of our success,” he states. Kitex ensures a holistic work environment by offering career development opportunities, continuous training, and promoting both personal and professional growth.
“Our belief is simple: the difference between ordinary and extraordinary is that little extra effort. This drives us to go the extra mile, and it is this commitment that I take great pride,” Mr. Jacob adds.
Sewing a Robust Growth Pattern
The global infant garment market, valued at around $45 billion in 2023, is projected to grow at a CAGR of 4.7% from 2024 to 2032. Despite industry challenges like rising labor costs, Kitex Garments continues to stand strong, thanks to its long-standing relationships with premium global clients.
“In FY24, Kitex maintained its position as the world’s second-largest manufacturer of infant wear. Our consolidated revenue reached Rs. 63,117.19 lakhs, reflecting a healthy increase from Rs. 60,105.24 lakhs in FY23,” Mr. Jacob states.
He also notes that while Kitex’s strategic focus remains on the US market, the company is expanding into Europe and Australia and diversifying into the adult wear segment through its new Telangana facility. “This expansion is in line with our growth objectives, enabling us to further solidify our global footprint,” he adds.
Sustainability and CSR
Kitex Garments places immense emphasis on sustainability and corporate social responsibility (CSR). Mr. Jacob reveals, “We are deeply committed to maintaining the highest ethical standards, both in our operations and our supply chain. Our suppliers undergo thorough background checks, and any deviation from global standards results in immediate removal from our supply chain.”
Kitex has made notable strides in its environmental goals, achieving a 2% reduction in water consumption, an 18% reduction in energy use, and a 9% decrease in greenhouse gas emissions. “We’ve also initiated waste recycling efforts and continue to support local agriculture and drainage systems to promote environmental stewardship,” Mr. Jacob adds.
Additionally, Kitex’s CSR initiatives go beyond statutory obligations, with activities ranging from road construction to subsidized food and medical support in underdeveloped areas, particularly in the Kizhakkambalam Panchayat. “Our commitment to community welfare remains an integral part of our business model,” he explains.
The Road Ahead
Looking to the future, Mr. Jacob expresses confidence in Kitex’s ability to navigate challenges and continue its growth trajectory. “We are optimistic about the future and remain resolute in our mission to lead the global infant garment industry. Our strategic investments, commitment to quality, and ethical practices will ensure that Kitex continues to emerge stronger,” he states.
Despite the ever-changing business landscape, Kitex is well-positioned to innovate, grow sustainably, and maintain its leadership in the market.
Kitex Garments, under the dynamic leadership of Mr. Sabu M. Jacob, is a company built on resilience, innovation, and a steadfast commitment to excellence. As Kitex embarks on new growth ventures, particularly in Telangana, the company remains a global leader in infant garments while driving sustainability and fostering community development. With a clear vision for the future, Kitex is poised to continue sewing a path of success and transformation in the global textile industry.
