He has said somewhere that to achieve 1000 crore revenues (which was doubling ) they dont need major capex. I think we was planning to use automation (robotics ) when he made this comment which would have meant increasing productivity and volumes with less employees. This experiment failed ( he was using US start up for sewing) and so now he needs to go for expansion.
Combining KGL and KCL together is right way to look as Sabu always talks assuming these are one company. even rating agencies use them as combined entity. He should combine these together now . He also comes on TV and news paper gives data on combined entity .
Money control article is badly researched , i dont understand how they allow guys who have done very superficial analysis to post anything and also Amit Mantri is wrong Kitex doesn’t have any unusual margins or they have same 23 % ( add processing charges ) operating margins ( SP apparrels have same and carter which is wholesale as 23 % sitting in US ). So there are no red flags on margin fronts . ROCE and ROE is higher as some of assets are in KCL name.
on US subsidiary as per law it is now required to be audited so whats the problem.
There are issues of cross leverage but Sabu as he has said has always helped KGL then KCL.
Only red flag was cash and then TUFS susidy ( not yet proved as fraud ) and people have put 2 plus 2 together as 222.