Kitex Garments Limited, a leading global brand in the infantwear segment, has put all its investment plans on hold owing to the uncertain market conditions in the export market caused by the COVID-19 pandemic.
While the Kerala-based company had planned an investment of Rs. 920 crore (US $ 123 million) for 2020, the unprecedented times have forced it to wait till the markets revive.
“Any new investment plan will be finalised after evaluating the COVID-19 situation across the global markets,” Sabu M. Jacob, Managing Director, Kitex Garments, told Business Line.
“We are adopting a cautious approach. The board had approved investments worth Rs. 920 crore last year. The company has also envisaged a Rs. 2,000 crore investment plan by 2025,” he further added.
The nationwide lockdown impacted the production of Kitex Garments, so much so that the company ended up with a loss of nearly Rs. 55 crore during the months of March and April.
While Kitex Garments used to ship around 7.5 lakh pieces per day during the pre-pandemic days, it has only been able to manage to ship about 3.5 lakh pieces per day since May, Sabu underlined.
Kitex Garments is the world’s third-largest infant garment brand, and aims to reach the top by 2025.