Joint venture agreement
KOTIC · price
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Kothari Industrial Corporation Ltd (KICL) has approved forming a new subsidiary called Kothari TUAD Private Limited via a joint venture with Italy-based Accademia della Moda (TUAD). The venture will set up an International Footwear Design & Technology Educational Institution/University in India, combining TUAD's design and academic expertise with KICL's industry and funding strengths. KICL will hold 51% of the equity (investing ₹2.55 crore for 25.5 lakh shares at ₹10 each), while TUAD will hold 49%. The new company will have an authorized capital of ₹10 crore and initial paid-up capital of ₹5 crore. The board will have 5 directors — 3 nominated by KICL and 2 by TUAD — with a KICL nominee as Permanent Chairman. The company is expected to be incorporated within 30 days, and the move is described as complementary to KICL's existing footwear vertical, not an unrelated diversification.
This is a strategic diversification into footwear design education, leveraging an international partner's brand and expertise. For shareholders, it represents a small capital outlay (₹2.55 crore) with potential long-term upside if the university gains traction, though near-term financial impact will be minimal given the early-stage, modest investment.