Kiaasa Retail Ltd IPO

About Kiaasa Retail Ltd

Our Company was originally incorporated as Kiaasa Retail LLP under the Limited Liability Partnership Act, 2008, with the Registrar of Companies, Central Registration Centre, issuing the certificate of incorporation on April 20, 2018. It was later converted into a Private Limited Company after a general resolution passed by the designated partners on February 14, 2022, and a fresh certificate of incorporation issued in the name and style Kiaasa Retail Private Limited on June 07, 2022 on behalf of Registrar of Companies, Central Registration Centre. Upon the conversion of our Company into a public limited company, pursuant to a Board resolution dated October 10, 2024, and a special resolution at an extraordinary general meeting dated October 18, 2024 and a fresh certificate of incorporation dated January 21, 2025 issued by the Registrar of Companies, Central Registration Centre.

The textile and apparel market in India is one of the oldest industries in the country, with a rich heritage that spans centuries. Overall, the industry contributes around 2% to the country's GDP and accounts for 7% of industrial output in value terms. With a 4% share of the global textile and apparel trade, the sector is vital for India's export economy, making up 10.33% of the country's overall export basket during 2021-22. This sector is broadly divided into several segments including fibre and yarn, processed fabrics, garments, and technical textiles. The garment sector is divided into ready-made garments and customized tailoring. However, the industry is facing a significant downturn, exacerbated by sluggish domestic market conditions. Manufacturers are seeing lower than expected sales as consumer spending increasing favors food items, consumer electronics like mobiles and iPads, and vehicles over garments. This shift in consumer preferences is particularly challenging for overall garment market. The spinning sector is struggling with high under-utilization due to reduced yarn imports from China and sluggish buying from weavers and knitters. The combined effect of reduced exports and lacklustre local consumption has compounded the industry's challenges. In response, initiatives such as the Production Linked Incentive (PLI) and PM Mitra schemes aim to attract investments in man-made fibres and technical textiles, to reduce import dependence over time. Despite these setbacks, segments like the athleisure and sportswear market, have shown robust growth, doubling sales over the past two years. Additionally, the kid's wear segment has benefited from the increasing demand driven by the growing child population. However, the reliance on imported man-made fibres, particularly spandex fabrics from China, Vietnam, and Taiwan, continues to pose challenges. Textile mills are also experiencing margin pressures, even as cotton prices stabilize around a two-year low. Adding to these difficulties, the industry is grappling with a significant rise in freight costs, up by 40% due to disruptions in the Red Sea region. This unexpected increase in transportation expenses raises concerns about its impact on operational costs and product pricing, particularly for the cost-sensitive ready-made garment market.

Our Company was originally incorporated as Kiaasa Retail LLP was incorporated in 2018, later converted into a Private Limited Company in 2022 in the name and style Kiaasa Retail Private Limited. Kiaasa is an ethnic wear brand that offers a wide range of apparel, footwear, and accessories designed exclusively for women. The product portfolio includes salwar kameez, lehengas, jewellery, bags, and scarves. The brand caters to the evolving fashion needs of Indian women by providing high-quality and affordable products that reflect their individuality. Kiaasa operates through a network of exclusive brand outlets and an online presence, ensuring accessibility across multiple platforms.

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