Kothari Industrial Corporation Ltd (KICL) has acquired an additional 4.50 crore equity shares in its associate company, Phoenix Kothari Footwear Pvt Ltd (PKFL), for a cash consideration of ₹45 crore.
The latest investment follows KICL’s acquisition of a 30% equity stake in Phoenix Kothari Footwear earlier this year for ₹139 crore. The company has now made a further investment under the board and shareholder approval for additional funding of up to ₹200 crore in PKFL.
Investment to strengthen footwear business
Phoenix Kothari Footwear is a contract manufacturer for global footwear brands, including CROCS and Adidas. The investment is aimed at supporting its growth and innovation initiatives while strengthening KICL’s presence in the global footwear supply chain.
KICL said the investment would strengthen its presence in footwear operations in Tamil Nadu and help expand its product portfolio and market reach.
Acquisition aligns with growth strategy
The footwear business supports KICL’s core operations and forms part of its long-term growth strategy. The company expects the investment to support the expansion of its footwear business and strengthen its position in the sector.
Transaction classified as related-party deal
The transaction falls under related-party transactions, as Rafiq Ahmed, Promoter, Chairman and Managing Director of KICL, holds a directorship in the target company.
The company said the transaction was carried out on an arm’s-length basis. The investment was made under the blanket approval granted by KICL’s board and shareholders for further investment of up to ₹200 crore in Phoenix Kothari Footwear in one or more tranches.