About Kizi Apparels Limited

Kizi Apparels Limited is engaged in manufacturing and trading of readymade garments through their own Showrooms, distributors and malls and online platform. Mr. Abhishek Nathani, as founders of the Company their promoter knew that he will have to build up a USP (Unique Selling Products) for their Company in order to sustain and grow in right direction in the market. According to his study and survey of the market he found that there is a huge gap in the demand and supply of premium quality products in the market. Their promoter explored further in this segment and found that their styling and workmanship matches the requirement of premium products and hence they started approaching brands who work on the similar line of products.

In 2019, by collaborating with the one of the India’s leading brands, their promoter got his first step towards his mission and vision. They used to regularly supply to "Arvind Lifestyle Brand Limited. Because of his hard work and knowledge of the industry, they established their self in the market for the said brand in very short span. The collaboration with the leading brand was the key turning point for their promoter and his business journey started blooming within short period of time. Because of the success in one segment, to expand the business horizontally, their promoter has decide to launch first their own brand “ANUTARRA” in the women’s ethnic wear segment.

As a part of further development, they have listed their products on most of the available E-commerce platforms in the F.Y. 2019-20. Due to their manufacturing unit, we could control the cost of the product and as result, they are able to provide the best quality product at a very affordable price in the market. This has created more demand for their products/brands in the market. In 2020 they collaborated with Reliance Retail & scaled up their business to a new height. When the most of the business in the whole world was severally affected due to Covid-19, their doors were opened for new businesses and they grew in terms of business volume.

In the year 2021, they became one regular manufactures of Reliance Retail. They have executed an Agreement and Non-Disclosure Agreement (NDA) with Reliance Retails Limited, Mumbai, on May 30, 2023 for a term of three years. In 2021, they have launched their women western wear brand by the name of “KIZI”. After market study, they understood the business dynamics by now and hence, they decided to launch their western wear segment as well, as it had a very consistent market. This gave them a wider publicity in the market and created their brand image in the market. In the year 2022, they have entered into distribution and wholesale network with their brands and consequently their sales increased to three times. This has helped them to captured the sizable share in the market for their Brands. They also provide facilities of job working for the renowned brands of India.

For effective cost control, they have tie ups with some of the major suppliers of raw materials required for their products. For fabric they have tie up with some of the certified mills from the state of origin of the fabric i.e. from Gujarat, Maharashtra and Tamil Nadu. Likewise, they procure their trims and accessories directly from the manufacturers, resulting their goods to be more cost effective. They usually tend to buy their raw materials when it is at the lower side as the greige fabric pricing keeps fluctuating due to the variance in yarn prices. As per their growth strategy, they also connected with the leading wedding collection brand of India.

They have also executed Products Supply agreement with M/s. Absolute Brands and Retails Private Limited (ABRPS), Banglore, vide Agreement dated June 05, 2023 for the supply of their products to the ABRPS on outright basis and ABRPS in turn sell the said products through its retail chain of store and through their E- Commerce Channel in India to the end customers. They have executed agreement for the supply of women wears which includes western wears and ethnic wears.

To promote their own Brands: 1. “Anutarra” - an ethnic wear collection for the women and 2. “Kizi” – a western wear collections for the women, they have their own clientele based in Jaipur only, who purchase in bulk from their Company and sale their products in the local markets through their shops. They do their own sale through their own website also, where they have provided all the options available in the apparel along with the online payment facilities.

THE INDIAN TEXTILE AND APPAREL INDUSTRY
The Indian Textile and Apparel Industry is valued at over US$ 100 billion, employing over 45 million people and accounting for 14% of the country's industrial production. India is a global leader in producing several textile products, such as being the second biggest producer of silk, cotton and Multimode Fibre (MMF). It is also a world leader in jute production, accounting for nearly 70% of global production. Additionally, based on capacity, the country has the second largest vertically integrated production base after China. This leadership position gives the country significant advantages, such as manufacturing strength across the value chain and a huge raw material base. The value chain includes weaving, spinning, garmenting and processing.

The Confederation of Indian Industry (CII) expects the industry to achieve a production level of US$ 250 billion by FY25, rising at a Compounded Annual Growth Rate (CAGR) of 12% between FY22 and FY25. In terms of exports, the CII expects industry exports to increase at a CAGR of 15% and reach US$ 185 billion by FY25. This target would help India double its share of the global textile and apparel trade from the current level of 5%. Growth is expected to be driven by demographic dividend, an increasing tendency to spend more on lifestyle products, and the spread of e-retailing and organised retailing in smaller towns and rural areas, thus boosting domestic demand. The growth in the industry will maximise value creation and employment generation and boost investment of approximately US$ 180 billion in the industry.

The Indian textile and apparel industry is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. India has a 4% share of the global trade in textiles and apparel.

India is the world’s largest producer of cotton. Estimated production stood at 362.18 lakh bales during cotton season 2021-22. Domestic consumption for the 2021-22 cotton season is estimated to be at 338 lakh bales. Cotton production in India is projected to reach 7.2 million tonnes (~43 million bales of 170 kg each) by 2030, driven by increasing demand from consumers. In FY23, exports of readymade garments (RMG) including accessories stood at US$ 16.2 billion. It is expected to surpass US$ 30 billion by 2027, with an estimated 4.6-4.9% share globally.

Production of fibre in India reached 2.40 MT in FY21 (till January 2021), while for yarn, the production stood at 4,762 million kgs during the same period. Natural fibres are regarded as the backbone of the Indian textile industry, which is expected to grow from US$138 billion to US$195 billion by 2025. 

India’s textile and apparel exports (including handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY. During April-November in FY23, the total exports of textiles stood at US$ 23.1 billion. India’s textile and apparel exports to the US, its single largest market, stood at 27% of the total export value in FY22. Exports of readymade garments including cotton accessories stood at US$ 6.19 billion in FY22. 

India’s textiles industry has around 4.5 crore employed workers including 35.22 lakh handloom workers across the country.

Given the textile and apparel industry's importance in developing the Indian economy, the government has announced several reforms to grow the industry and promote exports. 

Development capital support will not exceed Rs. 500 crore (US$ 62.6 million) for greenfield projects and Rs. 200 crore (US$ 25 crore) for brownfield projects. Furthermore, the development capital support will be restricted to 30% of the project cost for the greenfield and brownfield projects. States with an encumbrance-free and contiguous land parcel of more than 1,000 acres as well as other textile and related facilities were invited to present applications.

The Indian textile and apparel industry is among the largest in the world. The industry benefits from the domestic availability of raw materials, a large manufacturing base, diversified and innovative products, and growing demand from domestic and international consumers. In terms of production, India is already a market leader in several industry segments, such as silk, cotton and jute production. In terms of exports, India recorded the highest textile exports in FY22, reaching US$ 44.4 billion. Readymade garments and cotton textile comprise most of the country's textile and apparel exports. The government aims to reach US$ 100 billion in textile exports by FY30 and has taken steps to achieve this ambitious target. Government schemes such as the establishment of PM MITRA Parks and the PLI scheme are expected to boost investment in the industry, contributing to significant growth in production, employment and exports. These measures will help India turn into a global market leader.

TEXTILE AND APPAREL EXPORTS FROM INDIA
The Indian textile industry contributes approximately 15% to the country's export earnings. In FY22, textiles, handicrafts and apparel accounted for 10.6% of India's total exports. Barring a decline in FY20 and FY21, exports have risen steadily since FY16. Textile and apparel exports rose to their highest level in FY22, reaching US$ 44.4 billion and growing 41% over FY21 and 26% over FY20. Exports have increased 13.9% since FY16. In FY22, the US was the top export destination, accounting for 27% of textile exports, followed by the EU (18%) and Bangladesh (12%).

Readymade garments represent the largest share of textile exports, followed by exports of cotton textiles until FY21. However, cotton textile exports rose significantly in FY22, surpassing the readymade garment segment and thus contributing to the highest share. India is a net exporter with respect to the textile and apparel industry, which implies that textile and apparel exports exceed the country's imports. Hence, the industry is important in earning valuable foreign exchange and reducing the current account deficit. The government aims to achieve US$ 100 billion in textile exports by 2030. 

KIZI APPARELS LIMITED STRENGTHS
1. Quality: Their commitment to delivering unmatched quality is non-negotiable. They believe in crafting garments that stand the test of time, reflecting the essence of their brand.
2. Innovation: They embrace innovation as a driving force, allowing them to evolve and adapt in a rapidly changing industry. Their dedication to staying ahead of the curve ensures that they bring fresh perspectives to fashion.
3. Integrity: Honesty and transparency are at the heart of their interactions with partners, customers, and stakeholders. They maintain the highest ethical standards in all their dealings.
4. Empowerment: Their purpose is to empower women through their clothing choices. They create apparel that boosts confidence and self-expression, encouraging women to embrace their uniqueness.
5. Partnership: They believe in fostering win-win partnerships that create lasting value for all parties involved. Building strong relationships based on trust and mutual respect is fundamental to their success.

KIZI APPARELS LIMITED STRATEGIES
1. Strengthening their brands
2. Expanding Geographic Reach by E-Commerce
3. Continued focus on innovative designs
4. Develop cordial relationship with their Suppliers, Customer and employees
5. Focus on dealing in quality standard products
6. Procurement Process of Raw Materials

KIZI APPARELS LIMITED RISK FACTORS & CONCERNS
1. Their top ten customers contribute majority of their revenues from operations.
2. They have very short operating history as company.
3. The Company has acquired the ongoing business of M/s. Aaika Creations, a Proprietorship Concern through Business Transfer agreement.
4. The Company depends on timely identification of evolving fashion trends and creating new designs.