In the financial year under review, Kitex has continued to sustain its position as the
world's second-largest manufacturer of infant wear.
Dear Shareholders
‘Strength and growth come only through continuous effort and struggle'. From
humble beginnings at a small village near Kochi to building an organisation that redefines
the industry benchmarks, Kitex has been the embodiment of this quote.
The path has been difficult, marked by persistent headwinds; however, we remained
resilient, passionate to our craft and resolute in our commitment, transforming every
obstacle into opportunity.
At Kitex, we have always believed that the key to success, the difference between
ordinary and extraordinary is that little extra-- the ability to go the extra mile. As we
present to you the annual report for the financial year
2023-24, it gives me immense pleasure to share with you another year of remarkable
achievements and growth at Kitex. I am pleased to present to you the results of our
relentless hardwork and our unwavering dedication as well as share the future
possibilities with you.
Sewing a robust growth pattern
The global infant garments industry, valued at approximately $45 billion in 2023,
continues to demonstrate robust growth potential. With the increase in world population,
it is anticipated to grow at a projected compound annual growth rate (CAGR) of 4.7%
between 2024 and 2032. While challenges persist regarding labour costs, Kitex Garments
Limited stands strong, benefiting from the long-standing relationships with its premier
global customers. The expertise to timely deliver high-quality products at competitive
prices while adhering to rigorous global standards has been pivotal to our sustained
success.
In the financial year under review, Kitex has continued to sustain its position as the
world's second-largest manufacturer of infant wear. On a consolidated basis, our total
revenue reached H63,117.19 lakhs in the fiscal year 2023-2024 (FY'24), marking a healthy
increase from H60,105.24 lakhs in FY'23.
Simultaneously, the Company's EBITDA recorded great performance, registering at
H11,476.39 lakhs. While our profit before tax (PBT) stood at H8,672.46 lakhs, the net
profit after tax (PAT) was H5,583.05 lakhs; these statistics reflect our resilience and
operational efficiency despite market challenges.
We also have maintained our market leadership in our primary market, the US. An array
of strategic measures enabled us to achieve a commendable performance in the year gone by.
While our strategic focus remains on the US market, we are steadily planning to expand
into the Europe and Australian markets and diversification of our product offerings by
entering the adult wear segment through our new facility in Telangana. This expansion
aligns with our growth objectives, enabling us to expand our geographical footprint.
Seaming our strengths
We have synergised innovation and deep industry expertise to build an organisation
rooted in productivity, efficiency and excellence. As we are going from
strength-to-strength, we are aiming to explore different horizons. At Kitex, our mantra of
continuous improvement drives every aspect of our operations. We have always committed to
going beyond the set norms to deliver enhanced value to our consumers.
We have made substantial investments in both machinery and human capital to accelerate
sustainable growth. Currently, we are expanding our operations in Telangana at Warangal
And Sitarampur—which marks a significant milestone in our growth strategy. The first
phase of our new facility is already underway, with commercial production expected by
December 2024. This total investment of H3,000 crore in both phases aims to produce around
11 lakhs garments daily with a turnover of with a turnover of with a turnover of H3,000
crore p.a.
To further strengthen our production capabilities, we are also establishing a ginning
facility as a backward integration. This strategic move will enable us to manage the
entire production process, from sourcing raw cotton to spinning, processing and garment
manufacturing. This initiative will enable us to enhance quality, reduce costs and further
strengthen our position in the market.
And most importantly, in the pursuit of operational excellence, we ensure to always
remember the main designers behind our growth. We acknowledge the value that our efficient
workforce brings to the table. Therefore, we ensure to foster a holistic work environment
that prioritises the well-being of our employees. Our employees are integral to our
success, and we provide proper training and career advancement opportunities to facilitate
both their personal and professional growth.
Hemming to the needs of a better tomorrow
Kitex Garments Limited is dedicated to maintaining high ethical standards and
environmental responsibility. Our commitment to ethical practices extends to our supply
chain, where we conduct thorough background checks of our suppliers to ensure compliance
with global standards. Suppliers with any deviations from these standards are promptly
removed to uphold our reputation as a reliable partner.
In line with our environmental goals, we have achieved a 2% reduction in water
consumption, an 18% decrease in energy consumption and a 9% reduction in greenhouse gas
emissions. We are recycling plastic and other waste through authorised channels and
supporting local cultivation and drainage systems, to further our commitment to promoting
environmental stewardship. We are started reusing scrap materials- a practice that has
been highly appreciated by our customers.
In addition to this, we aim to uphold the long-standing tradition of prioritising
community welfare alongside business objectives. Our CSR initiatives extend well beyond
the statutory requirements, encompassing road construction, housing development,
subsidised food and medical support and agricultural activities in underutilised areas,
especially in the Kizhakkambalam Panchayat region. We are deeply committed to supporting
local communities and improving their quality of life.
Weaving our path forward
As we move forward, Kitex Garments Limited remains resolute in its mission to be a
leader in the global infant garments industry. We are optimistic of the future that lay
ahead of us. While we do understand that we operate in a dynamic environment, but our
strategic investments, dedication to quality and commitment to ethical practices will
enable us to always emerge stronger. We are confident in our ability to navigate
challenges, drive innovation and achieve sustainable growth.
Lastly, I would like to extend my heartfelt gratitude to all our investors, employees
and stakeholders for your unwavering support and trust. Together, we will continue to
build a brighter future for Kitex Garments Limited, driven by our resilience, passion and
resolve.
Thank you for your continued support.
Warm regards,
Mr Sabu M Jacob
Chairman and Managing Director Kitex Garments Limited