Kothari Industrial Corpn. expands footwear business with new JV, increased stake

Kothari Industrial Corporation Limited (KICL) has announced plans to expand its footwear business by incorporating a new subsidiary and increasing its stake in Phoenix Kothari Footwear Limited (PKFL). KICL’s board approved entering a joint venture agreement with Accademia IUAD, Italy, to establish a subsidiary named KOTHARI IUAD Private Limited or an equivalent.

KICL will hold a 51% stake in this new entity, which will have a proposed authorized capital of ₹10,00,00,000 and a paid-up capital of ₹5,00,00,000. KICL will subscribe to ₹2,55,00,000 in equity shares. This subsidiary aims to set up an international footwear design and technology educational institution in India.

Concurrently, KICL will acquire an additional 3,99,00,000 equity shares of Phoenix Kothari Footwear Limited at ₹10 per share, totaling ₹39,90,00,000. This acquisition will bring KICL’s holding in PKFL to 30% and is intended to strengthen its presence in the footwear segment. PKFL is involved in footwear manufacturing.

Both transactions are considered related party transactions, with Mr. Rafiq J. Ahmed, a promoter and director, having directorships in PKFL. However, the transactions are being conducted at arm's length. The formation of KOTHARI IUAD Private Limited is expected to be completed within 30 days of incorporation, and the PKFL acquisition will be finalized upon share allotment.