Kitex Garments Limited

Karvy has started covering Kitex Garments, and have provided details on the US business –

1. Tie-up with Lamaze International: Kitex USA LLC (50-50 JV between KCL and KGL) has signed a brand-licensing agreement with Lamaze International for the sale of infant wear in the US and Canada under the Lamaze brand. Kitex USA LLC will be the exclusive supplier for Lamaze infant wear (for children up to five years old) in US and Canada. The contract validity is till 31 December 2020, extendable for five years.
   The management is confident of clocking US$8m sales in CY16 through the brand tie-up and of achieving the minimum guarantee with royalty rates at ~5% of sales. Most of the products manufactured under the Lamaze brand will be made-to order and inventory risk will not be borne by Kitex.

2. Own Brand “Little Stars” to be launched by Fall 2016: KGL plans to launch its own brand “Little Stars”, owned by Kitex USA LLC by fall 2016. The management plans to target this brand as a mass market product in US and Canada. It plans to launch the brand through the online route.

3. New Client additions: Recently added two big clients – Children’s Place and Kohl

Source : http://www.karvyonline.com/viewdocument.aspx?DocumentID=11447