Khadim India jumps after board OKs demerger of distribution biz

The company primarily operates through its retail and distribution business verticals, and under the new scheme of arrangement, will demerge its distribution business into KSR footwear.

Shareholders of Khadim India will receive 1 equity share of KSR Footwear for each equity share held.

The distribution business operates through a wide network of 732 distributors, selling to multi-brand outlets across India and targeting lower and middle-income consumers.

The demerger aims to unlock the value of each vertical, attract specific investors, streamline management, and improve risk management. The scheme, subject to various approvals, will allow investors to allocate their portfolios into separate entities.

Khadim India is a footwear brand that manufactures and sells a wide range of shoes for men, women, and children. It has a nationwide presence with retail outlets across 23 states and 1 union territory in India.

On a consolidated basis, net profit of Khadim India declined 50.75% to Rs 1.65 crore while net sales declined 4.87% to Rs 157.98 crore in Q1 June 2023 over Q1 June 2022.

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