RMT- CANTABIL

8/7/2019 RMT- CANTABIL

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REPORT ANALYSIS OF

CANTABIL

Submitted to: Submitted by:

Mr. Vasant Kothari Shubhda

MFT 2nd sem



INDUSTRY OVERVIEW INDIAN RETAIL SECTOR ² A N

O VERVIEW

Retail is a

flourishing

industry in indiaThe country

provides the

second best global

opportunity forretail development.



INDIAN RETAIL SECTOR ² A N

O VERVIEW

In the last five

years, India has

become a hot

destination for theentry of global

consumer brands

and international

business entities.




O VERVIEW

Consumer is getting more conscious and is

demanding more value for money

It has become important for retailers to

understand the consumers and position

one·s retail stores accordingly

The Indian retail market has been ranked

the most attractive emerging market forinvestment followed by Russia and China

in the retail sector



GLOBAL RET AIL DEVELOPMENT INDEX

(GRDI), IN 2009

It indicates that India is still one of the most

preferred destinations for retail among internationalinvestors.




O VERVIEW

The Indian Retail market is estimated at

about USD 410 billion

It constitutes

y 60% of private consumption

y and about 35% of India·s GDP

With Indian GDP expected to grow at 7-

8% in the next coming years, the retailmarket is expected to touch USD 860

billion by 2018.



�The organized retail in India is poised to grow at an

astronomical pace over next few years�Expected to grow from 5% to about 25% of the total retail

market by 2018

�Revenues from organized retail is expected to touch

US$220 billion in 2018.




O VERVIEW

Share of Verticals



INDIAN TEXTILE INDUSTRY

Textile industry:

one of the most

important

industries in theIndian economy

Both in terms of

employment

generation and

contribution to

GDP.



INDIAN TEXTILE INDUSTRY

y It provides employment to about 91

million people (both directly and

indirectly) in textile and allied activities

y This sector also contributes

A bout 4 % in country·s gross domestic

production (GDP)

14 % of industrial production

A nd over 13 % of the country's total export

earnings.



INDIAN A PPAREL M ARKET

The domestic apparel retailing industry is

estimated to be round US$ 2.7 billion

y In spite of recession its growing at 5-7 % in

2009-10.

The domestic organized garment retailing

attained a growth of 13-14 % for year

ended march 2009.

Clothing & accessories segment

dominates the organized retail sector

y It contributes over 38 per cent of the

organized retail pie.



INDIAN A PPAREL M ARKET



A PPAREL SEGMENTS AT A

GLANCE



A PPAREL SEGMENTS AT A

GLANCE

Menswear: largest product category both

in terms of volume and value

Women's-wear: comprises 31.7% share of

the Indian apparel market in value terms

Unisex Apparel: It grew by 5.6% in

volume and 7.1% in value in 2008 over the

previous year.

Kids wear and Uniforms: has shown a

growth of 18.6% in 2008 over 2007.



CANTABIL: EMPLOYEE

HIERARCHY



CANTABIL: BUSINESS

O VERVIEW

Provides business

of

y Designing

y Manufacturing

y Branding

y A nd retailing of

apparels

Brand names:

´cantabilµ and ´la

fansoµ.



CANTABIL: BUSINESS

O VERVIEW

Network of 381 exclusive retail outlets (as

of august 31, 2009) spread across india.

The ´cantabilµ brand with 206 exclusive

retail outlets offers

y The complete range of formalwear, party-

wear, casuals & ultracasual clothing for

men, women and kids

y In the middle to high income group.



CANTABIL: BUSINESS

O VERVIEW

Presently they have

3 in-house

manufacturing /

finishing units and 4warehouses located

in delhi.

A lso have 3 third

party dedicatedunits manufacturing

exclusively for them.



CANTABIL: BUSINESS

O VERVIEW

They have fabricatingarrangements with 94manufacturing unitsfor outsourcing

cutting and stitching. Proposing to set up a

large integratedmanufacturing facilityat Bahadurgarh: to

reduce dependence onthird party



E XISTING M ANUFACTURING

F ACILITIES



THE DET AILS OF OUR PRODUCTS A ND THEIR

S ALES IN FY 2007-08 A ND FY 2008-09 A RE

GI VEN BELOW:



CANTABIL: REGION WISE

BRE AK UP OF EXCLUSI VE

RET AIL OUTLETS

(as on August 31, 2009)

The floor area on which our brands Cantabil and

La FA NSO are sold is 194990 sq ft and 98010 sq

ft respectively.



two models to operate outlets

y either company owned & franchisee

managed

y or franchisee owned & operated.

The break up of the number of exclusive

retail outlets under various models as on

A ugust 31, 2009



CANTABIL: COMPETITORS

There are about 25 major players operating

branded apparel segments in India. The following

is the details of major players and their major

brands in the apparel retail industry.



CANTABIL: INTERN AL

RISK FACTORS

Party to certain legal proceedings, if

decided against, could have an adverse

effect

dependent on third parties for significantportion of sales and for management of

retail outlets.

y If these third parties do not continue to

assist in retail store management and sales,

revenue could be adversely affected



CANTABIL: INTERN AL

RISK FACTORS

Raw materials including fabric, is sourced

from external suppliers.

y Therefore, fluctuation in the price,

availability and quality of fabric could causedelay and increased cost

Dependent on third parties for

manufacturing of major portion of

products Inability to manage growth can adversely

affect business and financial performance.



CANTABIL: INTERN AL

RISK FACTORS

Inability to maintain or improve brand

image can badly affect business and

financial performance

Inability to identify evolving fashiontrends and create new designs may

adversely affect our business

Inability to compete with competitors

could adversely impact business and

financial operations



CANTABIL: INTERN AL

RISK FACTORS

Majority of retail outlets are not on

ownership basis but taken on contractual

agreement basis.

y The non renewal of lease or any deficiency inthe title/ ownership rights/ development

rights of the owners may impede the

operation of outlets.

Business is dependent on manufacturingfacilities which are located geographically

in one area.

y Shutdown of operations may have an

adverse effect



CANTABIL: INTERN AL

RISK FACTORS

Business is seasonal in nature and sales

are realized during second half of the

financial year.

y A ny substantial decrease in sales during thisperiod can have a material adverse affect on

our financial performance

Growth strategy is to expand into new

geographic areas that, leads to certainrisks



CANTABIL: INTERN AL

RISK FACTORS

To find locations to open and operate

exclusive brand outlets.

Success depends upon our ability to retain

the key management and other personnel

The brand building exercise could be

affected if application for registration of

certain intellectual property rights are not

approved



CANTABIL: INTERN AL

RISK FACTORS

Solely dependant on third parties for the

supply and transportation of apparel from

warehouses, which are subject to various

uncertainties and risksWe face the risk of potential liabilities

from lawsuits or claims by customers

We may be subject to restrictive covenants

under term loans and working capital

facilities provided to us by our lender(s).



CANTABIL: INTERN AL

RISK FACTORS

Failure to obtain certain approvals or

licenses in a timely manner or at all may

adversely affect our operations

Insurance coverage may not adequatelyprotect us against certain operating

hazards and this may have an adverse

affect on our business operations



CANTABIL: EXTERN AL

RISK FACTORS

A ny changes in the regulatory framework

could adversely affect operations and

growth prospects

Civil disturbances, extremities of weather,regional conflicts and other political

instability may have adverse affects

We depend on banks and financial

institutions and other sources for meeting

our short and medium term financial

requirements.



CANTABIL: EXTERN AL

RISK FACTORS

Regional or international hostilities,

terrorist attack or other acts of violence of

war could have a adverse impact on

international or indian financial marketsSuch incidents could also create a greater

perception about the investment in

y This could have an adverse impact on

business and on the market price of company·s equity shares.



CANTABIL: EXTERN AL

RISK FACTORS

A n economic downturn may negatively

impact company·s operating results.

Investors will not receive the Equity

shares purchased in this issue untilseveral days after they have paid for

them, which will subject them to market

risk.

A n active market for the Equity shares

may not develop which may cause the

price of the equity shares to fall and may

limit investor·s ability to sell the Equity

Shares.



CANTABIL: EXTERN AL

RISK FACTORS

The market value of the Equity Shares

may fluctuate due to the volatility of the

securities markets.

Shareholders will bear the risk of fluctuation in the price of Equity Shares.

Future issues or sales of equity Shares of

our company may significantly affect the

trading price of the Equity Shares.



CANTABIL: STRENGTHS

Value Proposition and Understanding the

Consumers

Strong In-House Design & Research team

Personal Relationship at the Outlet Floor

A pparel range catering to wide customer

base



CANTABIL: STRENGTHS

Exclusive Brand Outlets

In-house integrated Capacity

Strong Management Team with Industry

Specific Experience

Strong IT Infrastructure

Commitment to quality



CANTABIL: GROWTH

STR A TEGIES

To enhance presence across pan India

Strengthening the brands

To maintain Focus on Long-term

Relationships

Enhancing manufacturing capacities

Continue to invest in human resources

and IT infrastructure



CANTABIL: STORE LOCA TION

To enhance visibility and to ensure maximum

footfalls, our stores are situated at malls and at

prominent locations

Stores are situated in major metros, mini metros,large cities and other Tier II cities

Such metros and cities includes Delhi, Mumbai,

K olkatta, Bangalore, Hyderabad, Pune, Jaipur,

A hemdabad, Vadodra, Lucknow, K anpur, Patna,

Ranchi, Dehradun, Meerut, Ludhiana,Jalandhar, Udaipur, A gra, Ghaziabad and

Gurgaon etc.



REFERENCES

A nnual report of Cantabil, 2009-10

Documents

RMT- CANTABIL