Suditi Industries acquires kidswear brand Gini & Jony | Company Business News

New Delhi: Textile and garment manufacturer Suditi Industries on Tuesday announced the acquisition of homegrown kidswear retailer Gini & Jony for an undisclosed sum.

Gini & Jony was founded in 1980 by Prakash Lakhani. It currently operates via 700 points of sales, this includes 59 standalone stores and over 70 large format stores and 600 distributors and dealers.

In a board meeting held on 14 November, Suditi Industries’ board unanimously approved entering into and execution of deed of assignment of intellectual property whereby 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 the brand.

“Suditi’s internal capacity to produce fabrics for over 100,000 garments per day positions us uniquely to scale Gini & Jony. This translates to roughly ₹6 crore of sales per day for the brand, highlighting the immense potential of what we can achieve by focusing our expertise and resources,” Pawan Agarwal, managing director of Suditi Industries, said in a statement.

Once a prominent brand in the Indian market, Gini and Jony had its fair share of troubles including hefty debt and dues to lenders.

In 2005, Reliance Group acquired a minority stake in Gini & Jony. By 2012, Reliance Capital Ltd held a 22% stake, while Singapore-based Arisaig Partners owned 9%. However, the retailer faced financial difficulties, including heavy debt and overdue payments to lenders. A planned ₹125-crore IPO was subsequently cancelled. In 2011, Gini & Jony filed for corporate debt restructuring due to sluggish demand and rising costs.

BSE-listed Suditi Industries is a textile and garment manufacturing company. In addition to manufacturing, the company retails 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 2023 the company reported standalone revenues of ₹92.43 crore. It reported a loss of ₹10 crore in the period, per the company’s financials for the year.

Kidswear in India

India has approximately 340 million children under 14, constituting 24% of its population. In recent years, numerous established brands have entered the kidswear market, driven by increasing demand for branded children’s clothing. All major foreign retailers operating in India offer a range of kids’ apparel and footwear.

Suditi Industries plans to establish an omni-channel strategy, including Exclusive Brand Outlets (EBOs), Large Format Stores (LFS), and e-commerce platforms.

“There are only a handful of brands in India that serve the entire nation, and Gini & Jony was not only the first but remains the name with the highest brand recall in the space. With our omni-channel approach and the combined learnings of both teams, we aim to build a powerhouse that serves every Indian family. The legacy of Gini & Jony is irreplaceable, and we are committed to strengthening its position in the market,” said Harsh Agarwal, chief marketing officer at Suditi Industries.