Kumarmangalam Birla Controlled Aditya Birla Fashion & Retail Ltd – [ABFRL] was carved out of merging Madura Garments and Pantaloon Retail. The strategy the management has explored is that Readymade garments are replacing demand for fabrics / stitched clothes with preference for western and casual wear combined with preference for brands with western positioning. In the women’s wear, they think that diminishing dominance of ethnic wear due to shift to casual wear and formal wear for women as more women join the workforce. Women’s wear market is mostly fragmented and unorganized. ABFRL has the following leading brands under its Umbrella.
Madura is predominantly a premium men’s wear player, housing India’s largest brands (Louis Philippe, Van Heusen, Allen Solly and Peter England) with 2.3 mn sq ft retail space and (more…)
Cafe Coffee Day CCD reported a 14% yoy growth in revenue driven by 13% growth in the retail operations and 25%+ growth in exports. The Average Sales Per Day came in at Rs 13,910, a growth of about 4% yoy while Same Store Sales Growth came in at 4.1%. Growth in ASPD continues to lag expectations and the company’s stated target of reaching close to Rs 20,000 over the next few years.
The management stated that the recently launched mobile app, the company’s foray into home delivery and constant innovation on the food menu side should help increase both footfalls and average ticket size thereby driving growth in ASPD. The management said (more…)
Patanjali currently has a product portfolio spanning 800 SKUS in 37 categories, and now competes with every major FMCG in one or more categories. In addition, it is consistently adding new categories and setting up new plants across India – thereby broadening its manufacturing, customer, and revenue base. Currently, Patanjali has a reach of 200,000 outlets vs. 4mn for larger FMCGs; however, it is continuously expanding its reach by appointing new distributors. With the top management comprising majorly of visionaries, and middle and lower management recruited from top Indian/MNC FMCGs, the company is building the right human resource base for (more…)
Tata group promoted Titan acquired a majority stake in Carat Lane Trading Private Limited, which is involved in the business of designing, manufacturing, trading and retailing (largely online) of gems and jewellery. Titan’s focus on its OMNI-channel strategy, store expansion potential and recent successful product launches offers an underappreciated opportunity for brand Tanishq to recruit new customers.
Titan management, synergies with the jewellery business of Carat Lane is very high and are as listed below (more…)
The Ministry of Commerce & Industry clarified yesterday through a press note that it would allow 100% FDI under the automatic route in marketplace model of ecommerce but would continue to disallow FDI in the inventory based model. Amongst the key points mentioned were – 1. such e-commerce marketplaces would be allowed to provide support services to sellers on their platform such as warehousing, logistics, order fulfillment, call center and payment collection. 2 – Not more than 25% of the sales through these marketplaces can be from one vendor or their group companies.
e-commerce entities providing the marketplace will not directly or indirectly influence the sale price of goods or services sold through the (more…)
The last 12-18 months have seen a sobering effect on the Indian internet companies, wherein the focus has shifted from GMVs (Gross Merchandise Revenues) and growth at all costs model to per unit economics and long term sustainable profitability. While it has not meant that the internet companies are under undue pressure to turn profitable within an immediate short term, increasingly investors are demanding a clear path to profitability. Another issue that PE / VC investors are often facing is the lack of exit opportunities from their investments.
The funding issues notwithstanding, the fundamentals of the (more…)
Aditya Birla Fashion & Retail has an impressive bouquet of brands at its disposal Madura is the owner/perpetual licensor of India’s leading menswear offering – Louis Philippe, Van Heusen, Allen Solly, Peter England; the portfolio approach enables it to straddle the price-pyramid and capture opportunities across the board. The branded menswear segment, a US$16bn market of which only c.30% is organised at present, is a decadal double-digit growth opportunity. The Pantaloons business would act as a top up to this growth through its bouquet of offerings in the (more…)
Trent’s Westside has retained its LTL growth leadership (6% as of 2QFY16 vs -0.1% for the rest of the listed retailers). This phenomenon, which has now been evident over the last eight quarters, deserves a more generous viewing, given that the company has sustained this growth against a backdrop of intensifying competition from ecommerce.
The company continues to invest in its product portfolio to improve LTL sales and we saw material changes in the product portfolio during our (more…)