Kizi Apparels IPO

Kizi Apparels Limited was incorporated on March 24, 2023, as Kizi Apparels Private Limited. The company started as M/s. Aaika Creations. It was established to bring a change in the manufacturing sector in terms of meeting the end-to-end requirements of the customers by improving the overall quality parameters.

In 2019, they started supplying to Arvind Lifestyle Brand Limited. Later, they launched their own brand, Anutaara, in the women’s ethnic wear segment. The company’s products were listed on the available E-commerce platforms in the FY 2019-20. Due to our manufacturing unit, they were able to control the product cost, and as a result, they could provide the best quality products at a very affordable price in the market. In 2020, the company collaborated with Reliance Retail and became a regular manufacturer of Reliance Retail.

In 2021, the company launched its women’s western wear brand called KIZI. In 2022, they entered the wholesale and distribution network with their brands. The company has partnered with certified mills in Tamil Nadu, Maharashtra and Gujarat for Fabric.

Their operations revolve around five key sectors: In the B2B (White Label) domain, they specialise in producing tailored goods based on buyer specifications, creating garments aligned with unique designs and quality standards. These garments are subsequently labelled with the customer’s brand and efficiently distributed to designated locations. Within B2B (Our Own Brand), they supply products under their proprietary brand to traders and wholesalers, providing a range of designs curated by the clients themselves. Engaging in Job Work (Cut to Pack), they adeptly manufacture garments using buyer-supplied fabric, adhering to specified designs and branding requirements.

Additionally, they add value to semi-finished goods by incorporating processes such as manual embroidery, handwork, and buttoning, ultimately selling these enhanced products to traders and wholesalers under their own brand. Embracing Direct-to-Consumer (D2C), their recently launched e-commerce platform showcases premium ethnic and western women’s apparel under the Anutaara and KIZI brands, respectively.

The textile and apparel industry in India is one of the largest markets in the world. The E-commerce industry in India is expected to overtake the US and become the second-largest e-commerce market in the world by 2034. By 2025, the e-commerce sector in India is anticipated to achieve US$ 111.40 billion from US$ 46.20 billion in 2020, growing at a 19.24% CAGR. This outlook can be a positive opportunity for Kizi Apparels Limited.

Kizi Apparels IPO Strengths

• The company sells its products through e-commerce platforms where their products are available across the country.
• The company is primarily into the development, manufacture and trading of women’s wear and further, they are planning to continue to be focused on women’s wear and to add kids’ wear.

Kizi Apparels IPO Risks

• The company’s operating history is less, which makes it difficult to assess the future prospects and historical growth rates or results of operations of the company.
• The company’s top ten product buyers and top ten raw materials suppliers contribute to the most revenue. The company does not have long-term agreements with the customer or supplier. Losing them could adversely impact the operations and revenue.