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Report | August 2015

KKCL goes all-out for 'Killer' instinct!

Kewal Kiran Clothing Ltd´s (KKCL) brands reflect the attitude of today´s youth ´ the ´Killer´ instinct to achieve; high on ´Integriti´; bold as ´Lawman Pg3´; and friendly and relaxed as ´Easies´. The company has consumers in Asia, the Middle East and CIS. KKCL designs, manufactures and markets branded jeans, and a wide range of apparel products for men and women.

The journey of KKCL, which started with a single step with the launch of ´Killer´ brand in 1989, began 25 years ago when local denim market was a highly unorganised one and there were no global denim brands available in India. In a challenging economic scenario, ´Killer´ was the best option to start with. In fact, ´Killer´ is the only Indian denim brand, which has survived for 25 years and is still going strong. A testimony to this fact is that KKCL has scaled new peaks in sales and profits in FY2013-14 ´ total income from operations grew by 21.20 per cent to touch Rs 367.21 crore and Profit after Tax (PAT) increased by 25.47 per cent to touch Rs 67.02 crore. ´Killer´ is a power brand with an international feel and a unique style quotient that is designed to highlight the rebellion of youth and the revolution of the spirit.

While talking to ITJ Senior Sub Editor Karthik Muthuveeran about how the ´Killer´ brand has managed to retain the numero uno position in the market against the likes of Lee, Wrangler, etc. Kewalchand P Jain, Chairman and Managing Director, KKCL, emphasised: ´Actually the real term data is not [really] available, but the ´Killer´ brand is still among the top five in India. When we started the process, there was no system for management and system processor. Day-to-day we upgrade our processes and systems, and because of this we are able to be among the top five major denim players in India. Our accounting standards are different and so is our manufacturing. We offer products at very affordable rates. We treat our channel partners in a different way and always back them. This gives them the motivation to invest with us.´

India has the youngest and largest demographic on the planet where the average age is 28 years and 74 per cent of the population is under 40 years. The domestic apparel market is estimated at Rs 1,25,000 crore with share of branded apparel at about 40 per cent, which would have been around 25 per cent about a decade ago. Domestic branded apparel sales are expected to grow at a CAGR of 10-15 per cent over the next five years, much faster than 6-7 per cent annual growth in the overall market. ´KKCL´s CAGR is growing at the rate of 15-20 per cent,´ added Jain with a smile on his face.

Speaking about the changing scenarios of denims around the globe, Jain said, ´Denims are very unique product, which has now become the necessity of life. If so much fashion changes with different kind of materials, denim will never go out of fashion. There is no after product of denim.´

A lifestyle brand´´Killer´´it is hardy with cutting-edge style. The entire range comprises of jeans, shirts, jackets, deodorants, inner wear, footwear, eyewear, glasses and other accessories. Jeans is the largest selling product category and sales of jeans crossed the Rs 200 crore level and now constitutes 55 per cent of the net sales of KKCL. The company has exclusive brand outlets as well as retail formats which operate under the trade names ´ Addictions and K-Lounge. These are popular stores in most cities in India and the Middle East. Its technologically advanced production facilities are all ISO 9000 certified. KKCL´s designing and manufacturing facilities are located in Dadar (Mumbai), Goregaon (Mumbai), Vapi (Gujarat) and Daman. Its state-of-the-art manufacturing processes are driven by innovation.

´KKCL´s three business parameters include stability, sustainability and scalability. In 2006, we came out with initial public offering (IPO)

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