Kewal Kiran Clothing Enters Women’s Denim Market with KCPL Stake

On May 30, 2024, Kewal Kiran Clothing Limited (KKCL) informed the stock exchanges about the strategic acquisition of a 50% stake in Kraus Casuals Private Limited (KCPL) for a total consideration of ₹166.51 crore.

The company stated that the equity stake would be acquired via primary infusion and secondary purchase. By entering into the women’s denim and casual wear category through this acquisition, KKCL will broaden its market presence and strengthen its leading position in the Indian and UAE markets.

KCPL, operating under the brand ‘KRAUS jeans’, specialises in manufacturing, selling, designing, and exporting women’s clothing, particularly casual and denim bottom and top wear for women, teens, and kids. The business was previously run by the partnership firm Oriental Trading Company (OTC). A Business Transfer Agreement (BTA) has been signed between KCPL and OTC, whereby the partners of OTC (Mr Ravi Punjabi, Mr Sunil Punjabi, Mr Sushil Punjabi, and Mr Atmaram Punjabi) have agreed to transfer the partnership business as a going concern to KCPL.

Kraus has a presence in more than 1,000 large-format stores, such as Pantaloons, Lifestyle, Shoppers Stop, Reliance, Lulu, etc. It has a network of 8 Exclusive Brand Outlets (EBOs) that will complement Kewal Kiran Clothing Limited’s huge network of over 488 EBOs, more than 80 Distributors covering 3,000+ MBOs (Multi – Brand Outlets), and available across national chain stores in over 2,000 counters spread across India.

Speaking of this acquisition, the Chairman and Managing Director of KKCL, Mr Kewalchand Jain, said, “Today’s acquisition marks a significant milestone in our journey, aligning with our strategic vision of expanding and diversifying our Denim & Casual Wear portfolio. It’s not only our maiden acquisition in KKCL’s history but also a testament to our commitment to growth and innovation. We warmly welcome Kraus into our fold. We anticipate this transaction to be earnings per share accretive and also generating enduring value for our shareholders in the years ahead.”

The Director of Kraus Casuals Private Limited, Mr Ravi Punjabi, said, “We have always looked out for opportunities to reach more people for our growing product range in Women’s Denim & Casual apparel market.”

He further added, that in KKCL, Kraus has found a perfect strategic partner to help broaden its market segment and channel partners, significantly growing the brand while remaining faithful to Kraus’s founding principles. The combined expertise in brand building, marketing, and distribution will ensure Kraus rises to its potential. KKCL’s resources and knowledge will be an incredible asset, and the Kraus team eagerly anticipates getting started.

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