Cantabil

Cantabil Retail India Ltd. is in the business designing, manufacturing, branding and
retailing of apparels under the brand names of CANTABIL. Cantabil has a network of
180+ exclusive retail outlets & employee strength more than 1200 spread across India.
The Company started its garments manufacturing and retailing business in 2000 and
opened its first store on September, 2000 in New Delhi. The CANTABIL brand offers
the complete range of formal-wear, party-wear, casuals & ultracasual clothing for Men
and Women in the middle to high income group. In the last 14 years, CANTABIL has
become a complete family wear brand with addition of women’s wear segment in
2007. Sales from brand is Rs 161 Cr. in fiscal year 2016-17. The company launched their
second brand KANESTON in 2013. The KANESTON brand caters to men’s segment in
undergarments. They are also retailing various accessories like ties, belts, socks, caps
and handkerchief under the same brand., Ahmedabad, Vadodara, Lucknow, Patna,
Ranchi, Meerut, Ludhiana, Jalandhar, Udaipur, Agra, Ghaziabad and Gurgaon etc. The
company has chains of exclusive retail outlets under the brand name "Cantabil" which
display and sell the brand exclusively. To enhance visibility and to ensure maximum
footfalls, the stores are situated at malls and at prominent locations of the major
metro, mini metros, large cities and other Tier II cities. Such metro and cities include
Delhi, Mumbai, Kolkata, Hyderabad, Pune, Jaipur, Ahmedabad, Vadodara, Lucknow,
Patna, Ranchi, Meerut, Ludhiana, Jalandhar, Udaipur, Agra, Ghaziabad and Gurgaon
etc.
Product and Services
Cantabil comes up with range of formal-wear, party-wear, casuals & ultracasual
clothing for Men and Women in the middle to high income group. CANTABIL has
become a complete family wear brand with addition of women’s wear segment in
2007. The KANESTON brand caters to men’s segment in undergarments. They are also
retailing various accessories like ties, belts, socks, caps and handkerchief under the
same brand.

Timeline
In the year 2000, the company started garments manufacturing and retailing business.
In September 2000, they opened their first retail store in New Delhi under the brand
name 'Cantabil'. They started selling through Multi Brand Outlets and Exclusive Brand
Outlets. In the year 2002, they resorted to business model of Exclusive Brand Outlets.
In the year 2007, the company launched women's' wear under the brand name
'Cantabil'. In the year 2008, as per the scheme of amalgamation, Cantabil International
Pvt Ltd was amalgamated with the company with effect from April 1, 2007. In October
25, 2008, the company launched their second brand 'La Fanso'. Also, they launched
kids' wear under the brand name 'Cantabil'. In March 05, 2009, the company name
was changed from Kapish Products Pvt Ltd to Cantabil Retail India Pvt Ltd.
Subsequently, in August 26, 2009, the company was converted into public limited
company and the name was changed to Cantabil Retail India Ltd. As on July 31, 2010,
the company has a total network of 411 exclusive outlets. They are having 143 outlets
under company owned and franchisee managed model and 268 outlets under
franchisee owned and franchisee operated model covering metros, large cities and Tier
II cities. The company is setting up a garment washing and finishing unit at Sonipat,
Haryana, which is under advance stage of implementation and is slated to start
operation by end of December 2010.
 PESTEL Analysis
POLITICAL:

The capital market of India is very vulnerable. India has been politically instable in the past
but it is a little politically stable now-a-days. The political instability of the country has a very
strong impact on the capital market. The share market of India changes as the political
changes took place. The BSE Index, SENSEX goes up and down with any kind of small and big
political news, like, if there is news that a particular political party has withdrawn its support
from the ruling party, and then the capital market will go down with a bang. The capital
market of India is too weak and is based on speculations. The Asian economy is growing at a
faster rate than other parts of the globe. However, the government and Red tape can be a
big problem in the Asian nations. For the big International retailers, it can be quite difficult
to expand into the Asian countries. India still has difficult laws and restrictions on Foreign
Direct Investments. All these factors can make it difficult for the retail brands to operate
profitably in the international environment. The political stability of the country is very
important for the stability and growth of capital market in India. The political imbalance or
balance of the country is the major factor in deciding the capital market of India. The political
factors include:

 employment laws
 tax policy
 trade restrictions and tariffs
 political stability

ECONOMICAL:

The Economical measures taken by the government of India has a very strong relationship
with the capital market. Whenever the annual budget is announced the capital market goes
up and down with the economic policies of the government. If the policies are supportive to
the companies then the capital market takes it positively and if there is any other policy that
is not supportive, and it is not welcomed then the capital market goes down. However, even
in the time of recession, the retail industry had maintained impressive sales. In 2015, it
achieved global sales of $20.8 trillion. Based on the economic scenario worldwide, the retail
industry is predicted to have grown to $28 trillion by 2020. The labour market and the
economy both are in very good shape and an increase in disposable income has also boosted
consumer confidence. All of these are very good signs for the retail industry. The better the
shape of the economy, the higher will be the revenue and profits for the retail brands. Better
economic scenario means a growth in sales and overall better shape of the retail sector. The
economic factors include:

 inflation rate
 economic growth
 exchange rates
 interest rates
 SOCIAL:

India is a country of unity in diversity. India is socially rich, but the capital market is not very
attached with the social factor. Social trends are also a major impact on the retail sector and
its profitability. Demographic changes and changing consumer preferences are going to have
a deep impact on retail sector. The millennials have different preferences than the previous
generation. When it comes to customer service they want more personalized service.
Retailers will have to change the way they serve their customers and design their service
experience better to lure in millennials in higher numbers. Demographic changes have also
affected the popularity of products. the technological products are in more demand than
ever. The demands of the new generation are much different than the older generations. The
importance of customer service is growing, and a lot of retailers’ popularity will depend on
how well they have crafted their customer experience. More focus shall have to be on
customer engagement. Yes, there is some relation between the social factors with the capital
market. If there is any big social factor then to some extent it affects the capital market but
small social factors don’t impact at all. Like, there was opposition of reliance fresh in many
cities and many stores were closed. The share prices of the reliance fresh went down but the
impact was on and individual firm there was not much impact on the capital market on a
whole the social factors have not much of impact on the capital market in India. The social
factors include:

 emphasis on safety
 career attitudes
 population growth rate
 age distribution
 health consciousness

TECHNOLOGICAL:

The technological factors have not that much effect on the capital market. India is
technological backward country. Same as social factors, technological factor can influence an
individual form, but it cannot have a big impact on a whole of capital market. If e-retail has
enjoyed exponential growth, then it is because of the additional convenience provided by
technology. More and more retailers are trying to make better use of technology to make
the customer experience better. Several new technologies like AI and cognitive intelligence
are going to change the retail landscape in the coming years. Even cloud computing, IoT and
Distributed intelligence are going to have a deep impact on the retail sector. In the coming
years several more things will be determined by technology which will remain at the centre.
The technological factors include:

 R&D activity
 technology incentives
 rate of technological change
 automation
ENVIORNMENTAL FACTORS:

Initially The environmental factors don’t play a vital role in the capital market. But the time
has changed, and people are eco-friendlier. This is really bothering them that if any firm or
industry is environment friendly or not. An increasing number of people, investors, corporate
executives are paying importance to these facts, the capital markets still see the environment
as a liability. They belie that it is of no use for their strategy. The environmental performance
is even under-valued by the markets. Like the other industry sectors, the retail sector is also
affected by the sustainability concerns. Packaging, waste reduction, renewable energy and
several other concerns related to sustainability are there before the retail sector. The big
brands like Amazon and Walmart have already invested a lot in reducing their carbon
footprint and in renewable energy. Apart from that the focus is also on packaging and
sourcing in an environmentally responsible manner. Amazon is always driving improvement
in packaging sustainability across the entire supply chain. It is focusing not just on reducing
its carbon footprint but also on achieving 100% renewable energy usage in the long term.

LEGAL FACTORS:

Legal factors play an important role in the development and sustain the capital market. Legal
issues relating to any industry or firm decides the fate of the capital market. If the govt. of
India or the parliament introduces a new law that can affect the running of the industry then
the industry will be demotivated and this demonization will lead to the demonization of the
investors and will result in the fall of capital market. Like after the Hardhat Mehta scam, new
rules and regulations were introduced like PAN card was made necessary for trading, if any
investor was investing too much money in a small firm, then the investors were questioned,
etc. These regulations were meant to maintain transparency in the capital market, but at that
time, investment was discouraged. Legal factors are necessary for the improvement and
stability of the capital market. The legal factors are also just as important for the retail sector.
There are so many laws related to business and employment that affect it. Labour laws are
particularly a big pain for the retailers who must maintain low prices to remain competitive.
Walmart has had so many tussles with laws over labour related issues. Apart from that, the
other laws like product and packaging related laws also apply to the retail sector. Overall, the
legal scenario is quite complex, and retailers must be cautious since any violation can result
in big fines. Both Amazon and Walmart have had to deal with their fair share of legal issues
in the past. These laws and the level of legal scrutiny differs from nation to nation and
everywhere the retailers must be cautious about compliance.
Current Affair
Over 15 stocks, including Infosys, Electro steel Steels, Albert David, Cantabil Retail India,
GKW and Greaves Cotton, hit 52-week highs on NSE in Tuesday's session that is 18
September 2018. Trading in the 15 securities will be available in trade for trade segment at
a price band of 5 per cent or lower with effect from April 12, the NSE said in a circular
today. Among the stocks to be moved to the restricted trading category are Aditya Birla
Money NSE -4.23 %, Burnpur Cement, Cantabil Retail India NSE -2.91 %, Dharani Sugars &
Chemicals, D-Link (India), DQ Entertainment (International), MIC Electronics NSE -2.04 %,
Petron Engineering Construction and Super Spinning Mills
Over 20 stocks including Adani Enterprises, Agri-Tech (India), Bharat Forge and Cantabil
Retail India NSE -2.91 % hit fresh 52-week highs on NSE.

Shares of retail companies such as V-Mart and Future Retail NSE -3.17 % scaled new all-time
high in morning deals on Thursday. Other retail majors such as Avenue Supermarts, Aditya
Birla Fashion and Retail and Cantabil Retail were also trading in the green.
V-Mart Retail surged after the net profit of the company jumped 941.67 per cent to Rs 5 crore
on 40.72 per cent rise in total income to Rs 252.58 crore in Q4 March 2017 over Q4 March
2016. The scrip was trading 6.14 per cent.
REFRENCES

 Abhijeet Pratap, 2017 Retail industry Pestle Analysis (ONLINE) Cheshnotes(viewed on

20th September 2018) available from: https://www.cheshnotes.com/retail-industry-
pestel-analysis/
 The Economic Times, 2018 Cantabil Retail (ONLINE) ETMARKETS(viewed on 20th
September 2018) available from: https://economictimes.indiatimes.com/Cantabil-
Retail-India-Ltd/stocksupdate/companyid-32357.cms
 https://www.mbaknol.com/investment-management/pestel-analysis-of-indian-
capital-market/