Kingsgate Clothing Group >> Milestones

After Dr A M Moolla's father passed away in 1944, he became de facto Chairman of the family business, Mahomed Ismail & Company, a small piece-goods wholesaler, which was based at 375 Pine Street, Durban.
When the Company moved to larger premises at 10/12 Albert Street, a clothing division was launched in 1955 by the Company's present Executive Chairman, Dr Ahmed-Sadek Vahed, specializing in the manufacturing of shirts and schoolwear.
The company opened its first manufacturing plant in Lorne Street in 1958, producing 600 shirts per day with a staff of 40. Rapid growth led to the manufacturing operations being relocated to larger premises in Commercial Road in 1959 where shirts, schoolwear, pyjamas, and women's underwear were produced.
A M Moolla (Pty) Ltd. was formed as a company in 1960.
Leopold Centre, home of the Group's head office, was purchased in 1959 and a ten-storey building erected. Adjoining land was purchased in 1961 and an additional ten floors built and combined with the existing structure in two phases by 1971, giving the head office an area exceeding 10,000m².
1966 was a landmark year as the Group entered the Chain Store market for the first time.
The Reunion Factory in Grey Street was purchased in 1978. The four-storey building was subsequently doubled and provided the Group with an additional 10,000 m².
Dr A M Moolla formed the A M Moolla Charity Trust in November 1959 to support deserving welfare, educational, and social causes.
In 1977, the University of Durban-Westville conferred the degree of Doctor Commercii, Honoris Causa on Dr A M Moolla in recognition of his inspired business leadership and social welfare service.
Dr A M Moolla passed away on 10 April 1980, at the age of 71. He was succeeded as Executive Chairman by his son-in-law and nephew Dr Ahmed-Sadek Vahed.
Dr Ismail Kathrada was appointed Administrator of the A M Moolla Charity Trust on 1 May 1980.
Kingsgate Clothing became known as the A M Moolla Group (AMM Group) in 1981.
"Ammdale Centre” at 242 Stamfordhill Road was purchased in 1982 and extended to accommodate its various marketing divisions, retail operations, finished goods and raw material warehouses, and the IT department.
Star Clothing Manufacturers (formerly known as Star Shirt and Clothing), including its subsidiary companies, Salt Of The Earth Creations and Antique Fashions, with brand names such as Smith and Wesson together with its entire collection, and production plant, the Hammarsdale Clothing factory, were all purchased in 1983.
1983 was momentous for another reason. Dr Ahmed-Sadek Vahed met with one of the leading fashion names in the world, Calvin Klein, in New York and, in a major coup for the Group, secured the “Calvin Klein” franchise ahead of long-established South African rivals.
The Isithebe factory, known as AMMPROPS, was built in 1985 as the Group decentralised production.
The Group made its inaugural entry into the export market in 1988 under the name “AMM Exports”. History was made in 1992 when the Group pioneered clothing exports to Russia by securing an order for USD 10 million.
The company received the “South African Non-Listed Company Award” in 1988. This award to the top non-listed company in the country was co-sponsored by Arthur Andersen and Co., Wits Business School, and Business Day.
Dr Ahmed-Sadek Vahed has had the privilege of meeting President Nelson Mandela, or Madiba to his followers, on three occasions. The first was at a gathering of business people at “Kings House” where they sat side-by-side for lunch.
1993 was momentous for the Group. Its business achievements were recognised through a hat-trick of awards: the “State President's Merit Award for Export Achievement”; “The Natal Mercury / British Airways Award for Business Excellence”; and the “Cotton Board Award” for outstanding support to the South African cotton industry.
The University of Durban-Westville conferred the degree of Doctor of Commerce on Ahmed-Sadek Vahed in 1994. In 1998 the University of Natal similarly recognized Dr Vahed's exceptional business acumen and accomplishments by honouring him with the degree of Doctor of Economics.
The Group entered the “Tenders” market in 1994, when it tendered for government parastatals, something denied to Black companies in the old regime. The company proved its mettle and during 1996/1997 and 1997/1998 was awarded the title of 'Supplier of the Year' by the South African Airforce and given the following specialized Achiever Awards: “Deliveries”; “Administration”; “Best Uniform Supplier”; and “Research and Development”.
AMM Exports was renamed New South Africa Garment Manufacturers (NSAGM), an apt designation following South Africa's first democratic elections in 1994.
In 1995 the Group was chosen as “Exporter of the Year” by Coopers & Lybrand and the Sunday Tribune.
AMM Group was listed in the Clothing, Footwear and Textiles sector of the JSE Securities Exchange on 8 October 1997. In 1998 the new public entity made a strategic acquisition of Sterling Clothing (Pty) Ltd., which broadened the customer base.
Following the “King Report on Corporate Governance”, which advocated separating the roles of Executive Chairman and Chief Executive Officer (CEO), Yusuf Vahed was appointed CEO in 1997 and Dr Ahmed-Sadek Vahed, Executive Chairman of the Group.
On 21 October 1998, Coastal Group Limited made an unsolicited take-over bid on the Group. The bid was thwarted when an overwhelming 99.1% of shareholders rejected Coastal Group Limited's offer on 12 December 1998.
The Group continued to accrue awards for excellence: an Achiever Award from the South African Airforce for Research and Development (1998/1999); a “Diamond Arrow Award” in 1999 from Professional Management Review (PMR) for “Winning 3 Golden Arrow Awards” in 1998; Silver Arrow Award for “Best Emerging / Affirmative Company” and Golden Arrow Award for “Best in Manufacturing Clothing in KwaZulu-Natal” (1999) from PMR; and the “Select Sports Wholesalers Distribution Award for Service” from a retail customer in 2001.
The Group de-listed from the JSE at the end of February 2001 and reverted to being a private business owned by the A M Moolla Family. From March 2001 it was known as the Kingsgate Clothing Group (KCG).
KCG was the first company to export out of the KwaZulu-Natal province of South Africa under the United States' African Growth and Opportunity Act (AGOA). In recognition of this achievement and the company's general expertise and understanding of the AGOA process, it received Visa No. 1 status in 2002 and was selected by the US Consular office in South Africa, on behalf of US Customs and Department of Trade, as the candidate company to conduct an AGOA training programme for the regulatory authorities of 18 Sub-Saharan African countries.
Over the years, the Group received several other awards / citations from various quarters.
Over the past few years, the Group initiated a restructuring programme to revitalize its various businesses by setting up specialized and focused marketing divisions to concentrate on “niche” areas. Considerable progress has been made in this regard and a solid platform established for sustainable long-term growth.
2003 saw the relocation of KCG’s Sterling division's marketing office from premises that were leased in Braamfontein in Central Johannesburg, to a property the Group purchased in Selby in the outskirts of Crown Mines, whereby a new Regional Office was established.
The establishment of a Stock Depot at the Johannesburg Regional Office in 2003 was an important innovation for the Group allowing independent retailers to purchase merchandise, in addition to their bulk requirements from Durban, on a wholesale basis at a safe, convenient and accessible location.
In the last financial year, a strategic decision was made to extend KCG’s businesses into retailing. This area is being explored in order that we do not compete with our mainstream activities of supplying our customers.
In 2005 the Group celebrated its fiftieth anniversary.
The Business of Paul Vivaldi Fashions (Pty) Ltd. including its divisions was sold, as a going concern to Kingsgate Clothing (Pty) Ltd. with effect from 1st March 2010.