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Kagzi Group enters women garments sector

Sep 28, 2016
Kagzi Group enters women garments sector

Jaipur-based entrepreneur Mohammed Arif Kagzi is looking to reverse the trend – from online retailing to brick-and-mortar stores to sell premium women’s garments brand Kashana.

“As against websites that offer heavy discounts, we have an advantage of lower inventory cost and economy of scale in manufacturing these garments. Therefore, we will be able to price it more competitively and be successful in offline retailing,” said Kagzi. The garments will be sold via Kagzi Apparels, an arm of Kagzi Group, known for its handmade paper.

Having a combined group turnover of Rs 100 crore, Kagzi Group has its own textile processing and garments division in Rajasthan. As a part of a forward integration, it plans to set up physical retail outlets through a mix of company-owned and franchisee stores nationwide. The group has a textile processing facility in Sanganer, a hub for the textiles and handmade paper industries. It also has a garment making facility at Sitapura near Jaipur with an installed capacity of 2,50,000 pieces a month. The group plans to manage inventory by adjusting the production according to demand. The company plans to set up 50 retail stores across India over the next year, of which 10 will be opened in three months. The first will be in Udaipur.