Kewal Kiran Clothing acquires 50 per cent stake in Kraus Jeans for INR 1.67 billion

Kewal Kiran has announced the acquisition of a 50 per cent stake in Kraus Jeans for a total consideration of INR 1.67 billion. The equity stake will be acquired through a combination of primary infusion and secondary purchase.

Transaction snapshot

  • Deal value: INR 1.67 billion
  • Deal multiples: N/A
  • Deal type: Equity stake acquisition (50 per cent)
  • Investors: Kewal Kiran

Kraus, currently operating under the brand 'Kraus Jeans', manufactures, sells, designs, and exports women's clothing, primarily focusing on women, teen, and kids casual and denim bottom and top wear. The business was previously operating under a partnership firm named Oriental Trading Company (OTC). Kraus and OTC have entered into a Business Transfer Agreement (BTA), under which the partners of OTC (Ravi Punjabi, Sunil Punjabi, Sushil Punjabi, and Atmaram Punjabi) have agreed to transfer the business of the partnership as a going concern to Kraus.

Kraus has a presence in over 1,000 large format stores, including Lifestyle, Pantaloons, Reliance, Shoppers Stop, Lulu, and a network of 8 Exclusive Brand Outlets (EBOs). This will complement Kewal Kiran's extensive network of over 488 EBOs, more than 80 distributors covering 3,000+ Multi-Brand Outlets (MBOs), and a presence across national chain stores in more than 2,000 counters throughout India.

Kewalchand Jain, Chairman & Managing Director of Kewal Kiran, stated that the acquisition aligns with the company's strategic vision of expanding and diversifying its Denim & Casual Wear portfolio. He also mentioned that the transaction is expected to be earnings per share accretive and generate enduring value for shareholders in the future.

Ravi Punjabi, Director of Kraus, expressed that the partnership with Kewal Kiran will help Kraus broaden its market segment, channel partners, and significantly grow the brand while remaining faithful to its founding principles. He added that Kewal Kiran's resources and knowledge will be a valuable asset for Kraus.

Back to blog