Suditi Industries Limited has announced a strategic ₹58.87 crore fundraising initiative to accelerate the transformation of Gini Jony into India's largest kids retail brand, marking the company's evolution from traditional textile manufacturing to a vertically integrated children's retail business.

Strategic Market Opportunity

The fundraising targets India's rapidly expanding children's apparel and lifestyle market, valued at ₹3,00,000 crores and growing at a robust 14-15% CAGR. This positions the kids apparel segment as one of the most compelling consumer opportunities in the country.

Comprehensive Fundraising Structure

The board approved the substantial fundraising plan through two preferential issues to non-promoter investors at ₹59.12 per share, including a premium of ₹49.12 per share.

The share warrants will be convertible into equity shares within 18 months from allotment, with 25% payable upfront and 75% due upon conversion.

Distinguished Investor Participation

The funding round attracted prominent institutional and strategic investors experienced in building category-defining consumer businesses. Key participants include Venkat Ramaswamy (Co-Founder of Edelweiss), Nitin Agarwal (former CEO of GlobalBees), Naresh Biyani (Founder of Capwise Financial Services), and Rajesh Palviya among others.

Existing investors include Nikhil Vora (leading consumer-focused investor), Sushant Goel (Co-Founder of Third Wave Coffee), and Vikrant Mudaliar (Chief Marketing Officer at Dream Sports).

Strong Financial Performance and Capital Structure

Suditi Industries demonstrated impressive financial momentum with 89% growth in turnover in Q2 FY24 and a remarkable 1,900% increase in net profit in Q2 FY25. The company maintains negligible debt levels, providing a strong foundation for growth.

Leadership Vision and Strategic Direction

Pawan Agarwal, Chairman Managing Director, emphasized the unique positioning: "The Indian kidswear market presents a once-in-a-generation opportunity. With Gini and Jony's legacy, national footprint, and emotional connection with Indian parents, we are uniquely positioned to build a truly integrated everything kids superbrand."

Harsh Agarwal, CEO of Gini and Jony, highlighted the strategic value of investor expertise: "Building a modern consumer brand today demands excellence across technology, supply chain, data, marketing, and governance. We are fortunate to have seasoned operators and founders as investors and advisors."

Capital Deployment and Business Expansion

The raised capital will accelerate retail expansion, strengthen digital and omnichannel capabilities, deepen product categories, and build scalable backend infrastructure while maintaining disciplined capital allocation. The company also approved acquiring the remaining 50% stake in SAA Suditi Retail Private Limited for ₹5,000, making it a wholly-owned subsidiary focused on textile garments and accessories.

Capwise Financial Services led the funding round and participated as an investor. Naresh Biyani, CEO of Capwise, stated: "We see tremendous potential in the market for kids products in India, and Gini Jony stands out for its relevance across generations and the brand loyalty it commands."

Suditi Industries has announced the completion of its divestment from its subsidiary, Suditi Sports Apparels Limited (SSAL). The company divested its entire stake of 12,00,000 shares in SSAL on September 11, 2025, as per a regulatory filing with the Bombay Stock Exchange.

Background and Timeline

The divestment process was initiated following a decision by Suditi Industries' Board of Directors on November 14, 2024. Prior to this transaction, Suditi Industries held 100% ownership in Suditi Sports Apparels Limited.

Details of the Divestment

Corporate Governance

The company has complied with the regulatory requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation of the divestment completion was made in accordance with Regulation 30 read with Para A of Part A of Schedule III of the SEBI LODR Regulations.

Management Statement

Pawan Agrawal, Director of Suditi Industries Limited, signed off on the regulatory filing, confirming the completion of the divestment process.

Investor Information

Suditi Industries has stated that the announcement will be available on the company's website at http://suditi.in for investors and stakeholders to access.

This strategic move by Suditi Industries marks a significant change in its corporate structure.