Kewal Kiran acquires 50% of Kraus Jeans, which is its first acquisition

Listed clothing player Kewal Kiran Clothing Ltd, owner of brands such as Killer Jeans, has acquired a 50% stake in women’s clothing maker Kraus Casuals for Rs 166.5 crore (about $20 million).

The transaction was carried out in the form of primary and secondary transactions. However, the companies did not disclose the division.

This acquisition paves the way for Kewal Kiran to enter the women’s wear category and strengthen its presence in the Indian and UAE markets. It will also likely facilitate further geographic expansion.

Marathon Capital Advisory Private Limited, Bansi S. Mehta & Co, Chartered Accounts and Wadia Ghandy & Co. Advocates, Solicitors and Notaries acted as advisors to Kewal Kiran Clothing in the transaction.

Kraus Casuals Pvt Ltd, operating under the Kraus Jeans brand, focuses primarily on women’s, youth and children’s clothing, as well as denim trousers and blouses.

Previously, the company operated under the partnership Oriental Trading Company.

Kraus claims to be present in 1,000 large-format stores, including: Lifestyle, Pantaloons, Reliance, Shoppers Stop and Lulu and in a network of 8 exclusive brand stores (EBO).

“This acquisition accelerates our journey towards becoming a casual clothing brand for the entire family. Kewal Kiran Clothing has a global distribution network and partners that will enable us to grow and expand Kraus as well,” said Hemant Jain, Co-Managing Director, Kraus Casual Pvt Ltd.

Kewal Kiran Clothing is a menswear company specializing in Killer, Integriti, Lawman Pg3 and easys menswear brands. It claims to have 488 EBOs and around 80 distributors across India.

Shares of Kewal Kirana were trading flat at Rs 684 apiece on Friday on the Bombay Stock Exchange.

“Today’s acquisition is consistent with our vision to expand and diversify our denim and casual wear portfolio. This is the first acquisition in the history of KKCL. We expect this transaction to be accretive to earnings per share and also generate sustainable value for our shareholders for years to come.” said Kewalchand Jain, Chairman and Managing Director of Kewal Kiran