Kewal Kiran Clothing Limited has declared the planned acquisition of a 50 per cent stake in Kraus Casuals Private Limited (“KCPL”) for a full consideration of Rs. 166.51 crores. The equity stake shall be obtained through a combination of main infusion and secondary purchase. By venturing into the Women’s Denim & Casual Wear category through this acquisition, KKCL not only broadens its market presence but also fortifies its leading position in India and UAE markets.
KCPL, presently operating under the brand ‘KRAUS jeans’, specialises in manufacturing, designing, selling, and exporting women’s clothing, mainly casual and denim bottom and top wear for teens, women, and kids. The business was formerly operated under the partnership firm Oriental Trading Company (“OTC”). KCPL and OTC have came into into a Business Transfer Agreement (BTA) wherein the partners of OTC have decided to transfer the business as a departing concern to KCPL.
Kraus, with its existence in 1,000+ large format stores comprising Lifestyle, Reliance, Pantaloons, Shoppers Stop, Lulu, etc., and a network of 8 select Brand Outlets (EBOs), will complement KKCL’s broad network of 488+ Exclusive Brand Outlets, 80+ Distributors covering 3,000+ Multi-Brand Outlets (MBOs), and existence around national chain stores in more than 2000+ counters stretched across India.
Kewalchand Jain, Chairman & MD of KKCL, shared, “Today’s acquisition marks a major milestone in our journey, lining up with our strategic vision of growing and branching out our Denim & Casual Wear portfolio. It’s not only our maiden possession in KKCL’s history but also a evidence to our pledge to expansion and innovation. We sincerely welcome Kraus into our fold. We predict this transaction to be earnings per share accretive and also producing lasting value for our shareholders in the years ahead.”
Hemant Jain, Joint MD of KKCL, added, “We are thrilled with the founders and the way they have been able to make a reliable brand in the underpenetrated and complex Women’s Denim & Casual Wear market. The purchase fast forwards our ride towards becoming a Casual Wear brand for the complete family. KKCL has an great presence with a sturdy global distribution network and exceptional partners that will help us to power the enlargement and expansion of Kraus. This is also in tune with our focus on planned investments and acquisitions in matching businesses to further reinforce our leadership position.”
Ravi Punjabi, Director of Kraus Casuals Private Limited, remarked, “We have forever looked out for opportunities to get to more people for our expanding product range in the Women’s Denim & Casual apparel market. In KKCL, we have found an ideal strategic partner to assist us broaden our market segment, channel partners, and radically grow our brand while remaining true to the founding principle of Kraus.”
