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By
Fibre2Fashion
Published
Dec 20, 2017
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Kitex Garments’ Rs 500 cr expansion plan for infant wear

By
Fibre2Fashion
Published
Dec 20, 2017

Kerala-based Kitex Garments Ltd will set up its fourth fully export-oriented infant wear production unit either in Andhra Pradesh or Karnataka, according to its chairman and managing director Sabu M Jacob. As part of the company’s Rs 500 crore expansion plan  a unit will come up in Kochi and the rest will be set up in either of the above two states, he said.


DR


Though Kitex was to reportedly locate its new manufacturing unit in Hassan in Karnataka, Jacob said with Andhra Pradesh offering tax benefits, free land and cheaper power, the company is yet to decide.

The target is Rs 2,000 crore revenue and a million garment pieces by 2020, he said. Kitex Garments is part of the Anna-Kitex group of companies.

KPMG will conduct a feasibility study for the goals and the timelines. The expansion costs will be met partly through internal resources and borrowings. Civil work will begin next year and the commercial run by April 2019, Jacob told a top Indian business daily.

Kitex produces 6.5 lakh pieces of finished garments per day, targeted at just-borns to babies up to the age of 24 months. It exports about 95 per cent of infant wear to the United States and the rest to Europe.

The company also engages in contract manufacturing for private labels such as Jockey, Carter, Babies R Us, Gerber and Mothercare

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