Kitex Garments and Kitex Childrenswear Detail Strategic Consolidation in Addendum to Meeting Notice

Kitex Garments and Kitex Childrenswear Detail Strategic Consolidation in Addendum to Meeting Notice​

Kitex Garments Limited (KGL) has issued an Addendum detailing additional information related to its Scheme of Arrangement with Kitex Childrenswear Limited (KCL). The scheme involves consolidating KCL's Textile Business Division into KGL, aiming to facilitate focused growth and business synergies for the resulting entity.

The meeting notice for the Equity Shareholders and Unsecured Creditors of the companies, which is scheduled for July 24, 2026, includes this Addendum. This document provides further details under Clause 54(xii) concerning information submitted to the National Stock Exchange of India Limited (NSE).

The objective of the scheme is the consolidation of KCL’s Textile business division into KGL to ensure better growth for the combined entity. The rationale provided states that segregation allows management to cater to independent growth plans, achieve operational efficiencies, and unlock value by optimizing operations under a single entity.

Key Operational Aspects of the Scheme​

The demerged undertaking transferred from KCL includes the manufacturing of infant wear garments at its facility in Kochi, Kerala, investment in Kitex Apparel Parks Limited (where KCL holds 30% equity), and an investment in distribution company Kitex USA LLC (in which KCL holds 50% equity stake).

KGL is a major global player in the infant garment industry, serving top ten international customers such as William Carters and Gerber. The scheme proposes to integrate the textile manufacturing division of KCL into KGL, with the goal of helping the resulting company grow and gain better market share.

As per confirmations provided by Kitex Garments Limited, there is no action pending or taken by any Government or Regulatory body against the entities involved in the scheme for the last eight years. Furthermore, it is confirmed that the proposed arrangement is yet to be executed and remains compliant with applicable securities laws.

Financial Overview of Entities​

A verification conducted by CYRIAC & Associates certified the consolidated audited financial statements for both companies as on December 31, 2024, March 31, 2024, and March 31, 2023.

The Net Worth figures and financials for Kitex Garments Limited (KGL) and Kitex Childrenswear Limited (KCL) are summarized in the tables below:

Financials as of FY2024 (Rs. in crores)


Financial Forecasts (Rs. in crores)

The company provides future financial projections for the Resultant Company (KGL) and Demerged Company (KCL), as detailed below:

Projected Performance of Kitex Garments Limited (KGL) and Kitex Childrenswear Limited (KCL)

Equity Structure Post-Arrangement​

The pre and post-scheme holding of Kitex Childrenswear Limited (KCL) in Kitex Garments Limited (KGL) is as follows:


The total equity structure of Kitex Garments Limited post-arrangement shows Sabu M Jacob and Renjitha Joseph as significant shareholders, with the public holding comprising 29.65% of the shares after the resultant company is formed.

KITEX Stock Price Movement​

Today, Kitex Garments Limited shares gained 0.11% to settle at ₹153.35 in post-market trading. The equity saw a volume of 273,026 shares during the day.