Killer jeans maker picks 50% in Kraus for Rs166.5 cr
KKCL is foraying into the women's denim segment through the deal, a statement said. The acquisition involves both a primary infusion of capital and also secondary purchase of shares from existing shareholders of KCPL
Mumbai: Kewal Kiran Clothing (KKCL), the manufacturer of Killer jeans, on Thursday announced the acquisition of a 50 per cent stake in Kraus for Rs166.51 crore. Kraus Casuals Private Ltd (KCPL) manufactures jeans for women and the listed KKCL is venturing into the women's denim segment through the deal, a statement said. The acquisition involves both a primary infusion of capital and also secondary purchase of shares from existing shareholders of KCPL, the statement said. The deal will help KKCL to expand its presence in the domestic market, and also fortify its position in the UAE, it said.
Kraus jeans sells in over 1,000 multibrand large format stores like Lifestyle, Pantaloons, Reliance, Shoppers Stop, and Lulu, it said, adding that the company has a network of 488 exclusive brand outlets and 80 distributors. "Today's acquisition marks a significant milestone in our journey, aligning with our strategic vision of expanding and diversifying our denim and casual wear portfolio," KKCL's chairman and managing director Kewalchand Jain said.
KKCL's joint managing director Hemant Jain said the deal fast forwards its journey towards becoming a casual wear brand for the entire family. "KKCL has an incredible presence with a strong global distribution network and outstanding partners that will enable us to power the growth and expansion of Kraus," he added. Kraus' director Ravi Punjabi called KKCL as a strategic partner who will help broaden the market segment, channel partners and significantly grow our brand. The KKCL scrip closed 1.86 per cent up at Rs 684.20 a piece on the BSE as against a 0.83 per cent correction on the benchmark on Thursday.