Hotline: 1800 102 2007
X
Search Business Opportunities
May, 09 2017

​Kitex brands to be sold through Walmart, Target, other US retailers

The BSE-listed firm expects that it will become the largest infant brand end of this fiscal and double its turn over to Rs 1,000 crore by 2020.

Kitex Garments, a Kerala-based infant garments major, has made inroads with US retail giants, including Walmart, Target and others, directly.

Company's two brands will be sold through the network of these retailers networks and expects to clock $50 million over the next two years.

The BSE-listed firm expects that it will become the largest infant brand end of this fiscal and double its turn over to Rs 1,000 crore by 2020.

Sabu Jacob, Chairman & MD, Kitex Garments said that the company has invested $1 million in Kitex USA to support the US business. Besides, another Rs 240 crore is lined up over the next two years to expand capacity in Kerala, which will cater to the new and existing customers.

Jacob said, "Everything went on well. Production has started now and from September onwards shipment will start to Walmart." In the recent months, Target, Buy Buy Baby, Rose Stores, Amazon and others have started selling company's two brands including 'Little Star'. The US market accounts for nearly 50 per cent of the $20 billion market.

In the US, Kitex wants to target the mass market by making 10-15 per cent cheaper than the market price. The strategy is while the private label of Kitex would cater to major retailers, the Kitex brand will cater to mid and small retailers.

Kitex will cater the retailers with two of its brands across 1,000-1,500 stores, owned or run by 5-7 retail brands across US. The company expects to invest around Rs 240 crore to increase the capacity. The investment will be funded through internal accruals, subsidy and debt.

Comment
Related opportunities
  • About: Arise ‘n’ Shine was established in 2003 in Great Lakes Michigan (North..
    Locations looking for expansion Tamil nadu
    Establishment year 2003
    Franchising Launch Date 2011
    Investment size Rs. 5lac - 10lac
    Space required 2000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Chennai Tamil nadu
  • Quick Service Restaurants
    About Us: Biryani queen is a unique & Conceptualized QSR brand,..
    Locations looking for expansion Delhi
    Establishment year 2014
    Franchising Launch Date 2018
    Investment size Rs. 20lac - 30lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New delhi Delhi
  • Publications & Print Media
    About: Jennard Galleries helps to create motivating workplaces where employees and..
    Locations looking for expansion Karnataka
    Establishment year 2003
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 0
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • Gyms and Fitness Centres
    About Us: Trugym is an innovative gym operator from the UK...
    Locations looking for expansion Delhi
    Establishment year 2009
    Franchising Launch Date 2018
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 3000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities