Kitex to launch new infant brand 'Little Star' in US

Kerala-based textile company to take on brands from China

To take on global brands, especially from China, Kerala-based infant wear and textile maker is all set to launch its own brand 'Little Star' in the US market. The company, which has been the major supplier to some of the global brands is launching its own brand on the backdrop of increasing demand in the country.

Sabu M Jacob, chairman and managing director of Kitex, in a letter to the shareholders said: "Company is intend to drive the next level of organic growth by expanding markets and online and offline marketing channels assisted by capacity expansion and by enhancing people and technological capabilities."

He said that company's key strategy is to continue leveraging on its leadership position in infant wear manufacturing as well as expand the market in US by forward integration.

The company is in the process of launching its own infant wear brand 'Little Star' in US Market by October, 2016. It has entered into a license agreement in September 2015 through KITEX USA LLC, with Lamaze International Inc, USA for manufacture and supply of Infants garments in US and Canada.

Kitex makes infant garment for the age group 0-2 years and its key markets are US and Europe. Kitex Garments is a listed entity from Kerala. The company is one of the leading global players in the global infantwear clothing market. Some of its customers include Carters, Gerber, Mothercare, Jockey & Toys R Us.

As per the 2014 data, post recession, the birth rates in US has started to ascend again.This is the first increase since 2007 While the data for 2015 is still awaited in 2014 the number of US births rose 1.4% to 3.99 million from 3.93 million in 2013.

As a reflection of the renewed consumer sentiment in US, the speciality infant apparels segment has grown close to 8% in 2015, said Jacob.

He added that Kitex aims to achieve and y-o-y growth of 20% in FY17 by expanding its customer base and increasing the business share with its existing customers. To achieve this goal the company is in the process of increasing its manufacturing capacity and plan to invest around Rs 10 crore during this year to upgrade its manufacturing and information technology infrastructure.

"We expect to maintain the same growth rate in FY18, FY19 and FY20. As we had stated in our previous year's annual report and during my various interactions, our aim is to become the Number 1 infant apparel manufacturer in the world," said Jacob.

The Kerala-based company was established in 1992 and it is a 100% exporter of cotton garments especially infant wear.

The company exports its products to US and European markets. Its per day capacity (infant wear units) is around 2.70 units and textile capacity is 50 tonnes per day.