New Delhi: Textile and apparel manufacturer Suditi Industries on Tuesday announced the acquisition of homegrown kidswear retailer Gini & Jony for an undisclosed amount.
Gini & Jony was founded in 1980 by Prakash Lakhani. It currently operates through 700 points of sale, including 59 standalone stores and more than 70 large format stores and 600 distributors and dealers.
At a board meeting on November 14, the board of Suditi Industries unanimously approved the entering into and execution of an intellectual property transfer deed under which the company will acquire certain trademarks, domain names and ownership of certain social media handles from Gini & Jony Ltd.
Suditi Industries will use its manufacturing capabilities to scale up the brand.
“Suditi’s internal capacity to produce fabrics for more than 100,000 garments per day makes it unique for us to scale up Gini & Jony. This translates to approx ₹6 crore sales per day for the brand, highlighting the enormous potential of what we can achieve by focusing our expertise and resources,” Pawan Agarwal, Managing Director, Suditi Industries, said in a statement.
Once a prominent brand in the Indian market, Gini and Jony had their fair share of problems, including significant debts and dues to lenders.
In 2005, Trust group acquired a minority stake in Gini & Jony. In 2012, Reliance Capital Ltd held a 22% stake, while Singapore-based Arisaig Partners owned 9%. However, the retailer faced financial problems, including heavy debts and late payments to lenders. A planned one ₹125 crores IPO was subsequently cancelled. In 2011, Gini & Jony filed for corporate debt restructuring due to weak demand and rising costs.
BSE-listed Suditi Industries is a textile and apparel manufacturing company. In addition to manufacturing, the company sells apparel under its own private labels, including YouWeCan, Nush and IndianInk, through both online and offline channels such as Myntra and Pantaloons. It is also engaged in knitting and dyeing of textiles.
In fiscal year 2023, the company reported standalone revenue of ₹92.43 crore. A loss was reported of ₹10 crore in the period, according to the company’s financials for the year.
Children’s clothing in India
India has approximately 340 million children under the age of 14, representing 24% of the population. In recent years, numerous established brands have entered the children’s clothing market, driven by the increasing demand for branded clothing for children. All major foreign retailers operating in India offer a range of children’s clothing and shoes.
Suditi Industries plans to launch an omnichannel strategy, including exclusive brand stores (EBOs), large format stores (LFS) and e-commerce platforms.
“There are only a handful of brands in India that serve the entire country, and Gini & Jony was not only the first, but remains the highest brand recall name in the space. With our omnichannel approach and the combined learnings from both teams, we aim to build a powerhouse that serves every Indian family. Gini & Jony’s legacy is irreplaceable and we are committed to strengthening its position in the market,” said Harsh Agarwal, Chief Marketing Officer, Suditi Industries.
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