June 17, 2024
Corporates

KKCL Acquires 50% Stake In Kraus Casuals For Rs 166.51 Crore

Kewal Kiran Clothing Ltd (KCCL) announced a strategic move with the acquisition of a 50% stake in Kraus Casuals Pvt. Ltd. (KCPL) for a total consideration of Rs 166.51 crore. This equity stake will be acquired through a combination of primary infusion and secondary purchase.

By entering into the women’s denim and casual wear category through this acquisition, KKCL aims to expand its market presence and strengthen its leading position in both the Indian and UAE markets. KCPL, operating under the brand ‘KRAUS jeans’, specializes in manufacturing, selling, designing and exporting women’s clothing, particularly in the casual and denim bottom and top wear segments.

Previously operating under the partnership firm Oriental Trading Company, KCPL has entered into a business transfer agreement with OTC. This agreement involves the transfer of the partnership business as a going concern to KCPL, with partners Ravi Punjabi, Sunil Punjabi, Sushil Punjabi and Atmaram Punjabi.

Kraus, with a presence in over 1,000 large-format stores including Lifestyle, Pantaloons, Reliance, Shoppers Stop, Lulu and 8 exclusive brand outlets (EBOs), will complement KKCL’s extensive network of 488+ EBOs, 80+ distributors covering 3,000+ multi-brand outlets (MBOs), and presence across national chain stores in over 2,000+ counters across India.

Commenting on the acquisition, Kewalchand Jain, Chairman & Managing Director of KKCL, stated, “The acquisition marks a significant milestone in our journey, aligning with our strategic vision of expanding and diversifying our denim & casual wear portfolio.”

Echoing similar sentiments, Hemant Jain, Joint Managing Director of KKCL, expressed enthusiasm about the acquisition, highlighting KKCL’s focus on strategic investments and acquisitions to strengthen its leadership position. He emphasized the founders’ expertise in the women’s wear category and their contribution to scaling up Kraus.

Ravi Punjabi, Director of Kraus Casuals Pvt Ltd, expressed excitement about the partnership with KKCL, foreseeing significant growth opportunities for the Kraus brand under KKCL’s guidance and resources

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