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the world’s leading M&A alliance
Indian Apparel Retail Industry
Indian Apparel Industry - Overview
•The Indian Apparel Industry is segmented into two sectors: • Domestic & Export segments
RMG* Market Size : 2005-06
Industry size (Rs. Million) - Domestic Market size (A) - Export Market size (B) Total Market size (A +B)
( EUR Billion)
68.8 31.2 100
13.64 6.10 19.75
Note: Per cent indicates the domestic and export market with respect to the total market size. * RMG – Ready-Made Garment Industry
•India is very strong in niche segment and short-run fashion garments
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Source: CRISIL Research, Readymade Garment (Annual Review) – February 2007
Ready-Made Garment Industry
– The Domestic RMG industry is highly fragmented with a few players in organized sector – This degree of fragmentation can be attributed to the erstwhile government policies – Small and unorganized local players largely dominate the domestic RMG Market – The domestic market worth Euro 13.64 billion can further be segmented into: – Men’s wear segment – Women’s wear segment – Kid’s wear segment Value (EUR Billion)
- Men’s Wear segment - Women’s Wear segment - Kid’s Wear segment
41.4 34.4 24.2
5.65 4.69 3.30
Note: The values and percentage in the table corresponds to the domestic market only.
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Source: CRISIL Research, Readymade Garment (Annual Review) – February 2007
Ready-Made Garment Industry – Of these three segments.4% of the total domestic RMG market Segment has grown at a CAGR of 8 % from 2001-02 to 2005-06 • Women’s Wear segment has further been categorized as depicted by the diagram • JEANS WEAR SHIRTS /TROUSERS TOPS the world’s leading M&A alliance Source: CRISIL Research.4% of the total domestic RMG market Segment has grown at a CAGR of around 8% from 2001-02 to 2005-06 • Men’s Wear segment has further been categorized as depicted by the diagram • COATS CASUAL T-SHIRTS MENS SEGMENT COATS FORMAL JEANS WEAR SHIRTS TROUSER DRESSES T-SHIRTS WOMEN”S SEGMENT SAREES – The Women’s Wear segment is estimated at 4. Readymade Garment (Annual Review) – February 2007 . Men’s Wear segment is estimated at 5.69 Euro billion in 2005-06 accounting for about 34.65 Euro billion in 2005-06 accounting for about 41.
Readymade Garment (Annual Review) – February 2007 .2% of the total domestic RMG market segment has grown at a CAGR of 14% from 200102 to 2005-06 • Kid’s Wear segment has further been categorized as depicted by the diagram • UNIFORM T-SHIRTS KIDS SEGMENT REGULAR DRESSES JEANS WEARS SHIRTS TROUSER the world’s leading M&A alliance Source: CRISIL Research.30 Euro billion and accounts for about 24.Ready-Made Garment Industry – The Kid’s Wear segment is worth 3.
19 Euro billion of the total market size.12 0.5 million people.66 6.6 100 Note: These values and percentage is corresponding to the export market only.10 Per cent 39. the world’s leading M&A alliance Source: CRISIL Research. • The United States (US) and the European Union (EU) being the key destinations.0 50. Readymade Garment (Annual Review) – February 2007 . Value (EUR Billion) .Ready-Made Garment Industry – The export market for readymade garment is estimated at 6.EU (25 countries) .US .4 10.Others countries TOTAL 2.42 3. – The RMG industry is the second largest employment generator & employs nearly 4.
SWOT Analysis of Indian Apparel Industry STRENGTHS • • • • Increasing disposable incomes of the people Brand conscious customers Availability of cheap finance Growing domestic market. increase in number of malls OPPORTUNITIES • • Increasing demand for luxury brands from the middle class Research and new product development can help the companies to move across the value chain WEAKNESSES • • Predominance of unorganized sector Technological obsolescence in the supply chain THREATS • • • Increased competition in the domestic markets Cheaper imports Changing Government’s policy on FDI the world’s leading M&A alliance .
Foreign Direct Investment (FDI) • • The Department of Industrial Policy & Promotion issues the guidelines for Foreign Direct Investment in India FDI upto 51% has been allowed in retail trade of ‘single brand’ products with prior government approval and under certain condition: – Products to be sold should be of a ‘single brand’ only – Products should be sold under the same brand internationally – ‘Single Brand’ product retailing would cover only products that are branded during manufacturing • For example: an umbrella brand like ‘ Christian Dior’ would not be allowed to stock different brands like j’adore.gov.dipp. Pure Passion and Dior Addict in one store the world’s leading M&A alliance Source: www.in .
Foreign Direct Investment CURRENTLY PERMITTED ROUTES FRANCHISING CASH & CARRY ( wholesale trade) JOINT VENTURE DISTRIBUTION MANUFACTURING Franchising • • Rights are granted by one party to another for some stipulated amount of money Franchisee is allowed to conduct business using Franchiser’s know how and brand name Joint Venture • • International brands provides equity and support to a local Indian entity Share of the foreign player is restricted to 49% Distribution • International Player sets up a distribution office in India and supplies products for sale to local retailers Can also set up franchised outlets for brands Cash & Carry (Wholesale Trade) • Allowed 100% FDI under the automatic route by FIPB.dipp.gov. model is designed in a way that the wholesaler deals with small retailers • Manufacturing • International Player sets up an Indian company to manufacture its product and also gets the right to retail in India Source: www.in the world’s leading M&A alliance .
Key Business Models for Manufacturing of Apparel • Business models can be categorized as following: • Manufacturing the apparel on their own • Purchasing the apparel from the contract suppliers / outsourcing • Giving the designs to the contract supplier and get the apparel manufactured Manufacturing Stage Distribution Stage Branding Stage Brand owner may provide designs and/or raw materials Outsource Manufacturing Brand Name Own Manufacturing Sell to a brand owner or Purchase brand Distribute through own stores Distribute through MultiBrand Outlets the world’s leading M&A alliance .
acting as a middle agencies between manufacturer. purchaser and distributor. – Very often a company can combine one or more of the mentioned business models to form a Multiple Strategy – For eg. partly manufacturing and partly outsourcing. selling partly through the own stores and through Traders and Commission Agents. the world’s leading M&A alliance . – There is also a dominant role played by the players in the unorganized sector • Some of the participants from this sector are: – Traders – purchasing branded or un-branded garments and selling them through own retail shops or to other retailers – Commission Agents . owning a few brand names and purchasing some from others.Key Business Model – Companies may follow a Single Strategy from among the list of business models mentioned before.
Distribution Channels in Indian RMG Industry DISTRIBUTION CHANNELS OWNED STORES / EXCLUSIVE BRAND OUTLET DISCOUNT STORES RETAILERS DISTRIBUTORS EXPORTS MULTI-BRAND OUTLETS or SHOPPING MALLS the world’s leading M&A alliance .
Various Distribution Channels • Owned Stores / Exclusive Brand Outlets • Advantages – direct medium of selling apparel – high realization for the garment sold – end-user feedback and knowledge of their preferences • Disadvantages – requires greater advertising expenditure – greater fixed costs • Some of the Players following this channel » Provogue » Raymonds Manufacturer-cum-Distributor » Madura Garments » Arvind Brands » Zodiac Clothing » Century Textiles the world’s leading M&A alliance .
Various Distribution Channels – ‘Multi-Brands Outlets’ or Shopping Malls • Organization sells apparels to multi-brand outlets. which in turn sell them through large retail space • MBO’s are located in prime locations of the various cities and towns ensuring maximum reach • MBO’s are chain of shopping malls having a presence in more than one location • Realization from this channel is lower than those earned by selling to the retailers. as MBO’s keep higher margins because their costs are higher • Some of the major players in this channel of distribution:» Shopper’s Stop » Pantaloon Retail » Westside (Trent) Manufacturer-cum-Distributor » Globus » Pyramid Retail » Reliance Retail the world’s leading M&A alliance .
who in turn sells to the Retailers or MBO’s • Realization from this channel are low – Discount Stores • For selling apparels at lower prices to attract larger volumes • Used for selling apparels with minor defects or for selling slow moving stocks • Low realization from this channel as garments are old-fashioned or sold at low prices for gaining big volumes – Retailers • • • • Company sells garment to Traders or Commission Agents Greater reach of the distribution channel Creation of a middle agency between the organization and the end-user Lower realizations from this channel the world’s leading M&A alliance .Various Distribution Channels – Distributors • This channel involves two middle agencies between the seller and the end-user • Organization sells it to the distributor.
but advertising and fixed costs are high OWN STORES DISTRIBUTORS DISTRIBUTION CHANNELS the world’s leading M&A alliance .Comparison Between Different Distribution Channels Higher realizations than selling through distributors Low realizations. but lower advertising and fixed costs HIGH RETURNS MEDIUM LOW Advertising and fixed costs are lower RETAILERS & MBO’s High realizations.
with its chain of premium 'Lifestyle Store’ the group aims to provide a stiff competition to the retail majors like Pantaloon. Pune. Max hypermarket – Landmark group currently in discussions with French hypermarket operator Carrefour to roll out the brand in India – The leading UK fashion retailer .New Look. Westside. Home centres.Industry Snapshot • AT Kearney report suggests that the Indian retail market has the largest growth potential in comparison to the international retail market and is expected to grow to 4 to 5 per cent a year in volume and 13 per cent in value. Bangalore. has signed a new Middle East regional franchise agreement with the Landmark Group – Also the Group intends to invest heavily in the fast growing Retail Market by opening outlets in Delhi.Chennai. Mumbai and Gurgaon through 10 lifestyle stores – Also planning to bring concept stores to India including Max Retail. Shopper’s Stop – The Group has its presence in 5 cities . Some important upcoming potential players of this market are: The $600 million Dubai-based The Landmark Group which entered the Indian market in 1999. Kolkata and Ahmedabad. • the world’s leading M&A alliance . Hyderabad.
in July 2000 Offering to the premium consumer with – Wills Classic – range of Formal Wear » Launched in 2002.willslifestyle. provides the consumers a distinct product offering – Wills Clublife – range of Evening Wear & designer accessories » Launched in 2003. Work wear and Denims – The brand is available across the country through a nation-wide network of exclusive stores and multi-brand outlets – Website: www. Party.Industry Snapshot • • ITC’s Lifestyle retailing business division established a chain of exclusive specialty stores. – Wills Sport – range of Relaxed Wear ITC launched its brand ‘John Player’ in December 2002 – With this brand the company offers a complete wardrobe of Casuals.com • the world’s leading M&A alliance .
Jimmy Choo. Calvin Klein. Shopper’s Stop etc to set up their brands in India The Murjani Group with its Joint Venture with Marvin Traub focuses on bringing international brands to the Indian retail market – The Murjani Group launched Tommy Hilfiger in India in 2004 – Future strategy of the group for the Indian markets would be to create multibrand retail platform – The Group has already formed exclusive distribution agreements with the brands like Gucci.com • the world’s leading M&A alliance .Industry Snapshot • Some of the premium international brands like the Gucci Group.murjanigroup. TUMI and Build-A-Bear – Website: www. Lifestyle. are in talks with major retailers like the Pantaloon. Fendi. FCUK.
Profile of Major Players • The Major players in the Indian RMG Industry are profiled as following in the next few slides: 1. Provogue ( India) Ltd 8. Wills Lifestyle (Lifestyle Retailing Business Division. Murjani Group 13. Landmark Group the world’s leading M&A alliance . Reliance retail Ltd 11. Globus Stores Pvt Ltd 5. Shopper’s Stop 3. Piramyd Retail Ltd 6. The Raymond Group 9. Pantaloon Retail (India) Limited 2. Madura Garment 10. ITC) 12. Arvind Brands Ltd 7. TATA – Trent 4.
1. Pantaloon Retail (India) Limited – The Future Group the world’s leading M&A alliance .
Kishore Biyani Became public limited in 1991 ‘The Pantaloon Shoppe’ . Hypermarkets.com » » » » » » » The Future Group operates through six verticals : Future Retail – covering retail business Future Capital – catering to financial products & services Future Brands – managing all the brands owned or managed by group companies Future Space – managing real estate business Future Logistics – managing supply chain and distribution Future Media – developing and managing retail media space – Business Area the world’s leading M&A alliance .pantaloon.Pantaloon Retail (India) Limited – The Future Group – Background – – – – – – – Incorporated in October 1987 under the leadership of Mr.exclusive menswear store was set up in 1994 ‘Big Bazaar’ – under the concept of Hypermarket started in 2001 ‘Pantaloon Retail India Limited’ – a flagship enterprise of ‘The Future Group’ Retail sector activities . Supermarkets.Departmental Stores. Malls and Specialty Stores website: www.
• Currently adopted retail format by the group: – Lifestyle Segment » Pantaloon » Central – Value Segment » Big Bazaar » Food Bazaar the world’s leading M&A alliance . • Developed a Dual Strategy – Of opening smaller versions in its flagship stores like ‘BIG BAZAAR’ – Opening larger Independent Stores. malls etc.Pantaloon Retail (India) Limited – The Future Group – Business Strategy • Targeting greater market share by entering into formats such as departmental stores. hypermarkets. supermarket.
Guess and Women’s Secret in India • PRIL holds a 51 per cent stake in JV with Liberty Shoes called ‘FootMart’ runs stores under the name of ‘Shoe Factory’ located in shopping malls and also opened as independent stores the world’s leading M&A alliance .Pantaloon Retail (India) Limited – The Future Group – Private Labels such as: • Pantaloon’s apparel retail business derives its 75 per cent of sales from its private label – Major Strategic Alliances John Miller shirts Lombard Bare Leisure Annabelle Akkriti JM Sports Pantaloon Bare Denim Mix Match • PRIL has entered into 50:50 JV with Ginni & Jonny – known brand for kids • Sole Franchisee of Mark& Spencer.
67 91.15 4.94 11.62 956.Financial Snapshot Financial and Operating Performance Total Sales PAT Equity Net Worth Market Capitalization (as on 5th April ’07) 2006 (EUR Million) 340.60 the world’s leading M&A alliance .
Shopper’s Stop the world’s leading M&A alliance .2.
MAC Retail sector activity – Departmental Stores. home products. Kashish. Elliza Donatein – The store also offer concessionaire space to brands.com – Business Area – The store offers a wide variety of international and Indian brands – Stocks private labels like Stop.Shopper’s Stop – Background Established in 1991 by the K. Baby Care) Website: www. Specialty Stores (books.shopperstop. Crossword. HomeStop. Vettorio Fratini. Mother Care. cosmetics. Raheja Group The group is a well known player in the construction sector It is a Public Limited Company Principal Fascia – Shopper’s Stop. F&B. whereby the counters are arranged by the employees of the concessionaire the world’s leading M&A alliance .
accessories. footwear. ‘Brand Stores’ and ‘Flagship Stores’. the company also has presence in Niche Retailing format • With the brands such as: – Crossword – a lifestyle bookstore. music. baby care products and maternity clothes the world’s leading M&A alliance . caters exclusively to home furnishings and furniture – Mother Care . toys. Estee Lauder – HomeStop – it’s a specialty store. cosmetics.Shopper’s Stop – Business strategy – Primarily catering to the Lifestyle Retailing segment through Departmental Stores • Offers a gamut of products – apparels. leather products. – Ventured to the Value Retailing segment with inception of ‘HYPERCITY’ – Apart from these stores.it’s a franchise agreement with a UK-based Mothercare marketing baby clothes. – MAC – it’s a tie-up with a cosmetic major. these are run in 3 formats – ‘ Corner Store’. furnishing etc. books.
for which also signed an MOU with the Nuance Group of Switzerland the world’s leading M&A alliance .Shopper’s Stop • Future Expansion Plans • The company plans to form a JV with AGROS of UK to start Catalogue Retailing Business in India • Plans to diversify into airport retailing.
73 4.714 5.Financial Snapshot Financial and Operating Performance Total Sales PAT Equity Net Worth Market Capitalization (as on 5th April ’07) 2006 (EUR Millions) 117.93 367.86 the world’s leading M&A alliance .97 46.
Tata Trent Ltd the world’s leading M&A alliance .3.
mywestside.Tata Trent Ltd – Background established in 1998 as a part of Tata Group started operations by acquiring the UK-based Littlewoods departmental stores in Bangalore • the company owns a chain of department stores across the country & is also increasing its foothold in the high volume hypermarket sector • The company has initiated a new retail venture called ‘Infinity Retail Limited’ dealing primarily in electronic consumer durables • Website: www.com • • Tata Ltd Trent Ltd Infiniti Retail Ltd Westside Star India Bazaar Landmark Croma the world’s leading M&A alliance .
Mumbai. Pune. Hyderabad. New Delhi and Kolkata • Landmark – Company acquired a 79 per cent stake in this Chennai based books and music retail chain – The chain has its presence in Bangalore. Vadodara and Chennai • Star India Bazaar – First store opened in Ahmedabad (Gujarat) with which company entered the Value retailing segment – Store offers wide range of products like staples. women and children – Established its outlets in Mumbai. health and beauty products – The company is planning to open such stores in Mumbai and Bangalore as well • Infinity Retail Limited – The company has set up a new store ‘Croma’ which sells electronic consumer durables – For this a sourcing agreement has been signed with the Australian retailer – ‘Woolworths‘ the – Company plans to alliancearound 100 more such stores in coming years world’s leading M&A set up . perishables. and accessories for men.Tata Trent Ltd – Business Strategy – The company has three store formats on which it is current operating • Westside stores – Primarily apparel stores comprising a mix of clothes. footwear. Chennai. Bangalore.
Financial and Operating Performance Total Sales PAT Equity Net Worth Market Capitalization (as on 5th April ’07)
2005-06 (EUR Millions) 60.24 4.23 2.50 50.35 191.83
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4. Globus Stores Pvt ltd
– Set up in 1998 as a part of Rajan Raheja Group – Currently runs 14 stores across India – The group is completely into apparel stores with prime focus on the private labels – ‘GLOBUS’ and ‘F21’ are the two private labels
» Globus caters to apparel and accessories markets for men, women and children » F21 primarily targets the youth
– Company is ISO 9001 certified with ERP-enabled supply chain – Website: www.globus.in
the world’s leading M&A alliance
Globus Stores Pvt ltd
– Business Strategy
• The company started as a departmental store, but gradually shifted its focus to the apparels and
private labels » has an in-house team of designers and merchandisers responsible for quality » Actual production activity is outsourced • The company is mainly targeting smaller cities like Vadodara, Muradabad, Jamshedpur Ranchi, Udaipur Bhopal, Ludhiana • The group is planning to set up 100 stores by 2008 across the country – Up-coming stores are to set up in Varanasi, Hyderabad and Noida – Financial information of Globus Stores Pvt Ltd is not available as the company is a privately held company.
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5. Piramyd Retail Ltd the world’s leading M&A alliance .
Hyderabad and Chennai the company is also planning to expand to Tier II and Tier III cities • The company will continue with mall development project in Pune. Bangalore.Piramyd Retail Ltd – Background Promoted by the Mumbai-based Ajay Pirmal Group in 1998 Runs family entertainment centres called ‘Jammin’ Recently sold one of its mall ‘Crossroads’ to Pantaloon Retail Limited To increase the presence Retail chain operates in both » Lifestyle Retail – ‘Piramyd Megastore’ » Supermarket – ‘TruMart’ – Website: www.com – – – – – – Business Strategy • Apart from the metro cities like Bangalore. Ludhiana. Chandigarh and Hyderabad • The company is also planning to revamp its product mix to focus primarily on the women’s segment • Also trying to increase its share of private labels by newer categories like women’s ethnic wear and children wear the world’s leading M&A alliance . Chennai. Jalandhar.piramyd.
1.72 22.30 3.24 .48 20.Financial Snapshot Financial and Operating Performance Total Sales PAT Equity Net Worth Market Capitalization (as on 5th April ’07) 2006 (EUR Millions) 17.36 the world’s leading M&A alliance .
Arvind Brands Ltd the world’s leading M&A alliance .6.
Newport and Ruf & Tuf in denim trousers and Excalibur in shirts • Website: www. Arrow and Tommy Hilfiger for selling in the Indian market • It distributes its products through Multi-Brand Outlets (MBO’s). Gantt.arvindmills.Arvind Brands Ltd – Background • Subsidiary of Arvind Mills. organised retailers and Exclusive Brand Outlets (EBO’s) • The company manages various brands like Flying Machine. a major garment manufacturing player • Caters to the domestic market and is also involved in exports • It has 3 large manufacturing units. Wrangler. 2 warehouses and 400 sales outlets across the country • The company has its owned brands and licenses from reputed international brands like Lee.com the world’s leading M&A alliance .
Ltd. JanSport and Kipling – This tie-up has also made the company an exclusive franchisee of ‘Gantt’ » It’s a distributor for the brand across India. to market its products in India – VF Corporation owns brands such as Lee. t-shirts. jackets. Nautica. Vanity fair. Plans to open 13 Nautica Stores • Arvind Mills plans to open around 100 megamart stores across 100 cities thereby enhancing their existing network 54 outlets in 16 cities – This would increase its presence in Tier II cities as well the world’s leading M&A alliance . Wrangler. blazers and suits – Planning to set up 100 Excalibur outlets • Recently entered into a 40-60 Joint Venture with VF Corporation.Arvind Brands Ltd – Business Strategy • ‘Excalibur’ the company’s own brand is revamped as a lifestyle brand – Expanding the product portfolio to include knits. a US-based lifestyle apparel maker and owner of 50 brands. Sri Lanka and Bangladesh » VF Arvind brands Pvt.
11 36.40 256.62 156.Financial Snapshot Financial and Operating Performance (of Arvind Mills ) Total Sales PAT Equity Net Worth Market Capitalization (as on 5th April ’07) 2006 (EUR Millions) 275.91 the world’s leading M&A alliance .93 22.
Provogue (India) Pvt Ltd the world’s leading M&A alliance .7.
net – Business Strategy • Retail Formats followed by the company: – ‘Provogue Mega Studios’ – stores a wide range of merchandise – The company operates through its stores – ‘Provogue Studio’ » These are stores that are managed directly by the company or through contracts » Located mainly in malls – Have allocated space in other departmental stores on a shop-in-shop basis the world’s leading M&A alliance .Provogue (India) Pvt ltd – Background – – – – – – Incorporated in 1997 as ‘Acme Clothing Private Limited’ Manufacturer-cum-distributor of ready to wear garments mainly deal in men’s casuals It launched its fashion brand ‘Provogue’ in 1998 Company was rechristened as ‘Provogue India Private Limited’ in 2005 It also started its hospitality business under the brand name ‘Provogue Lounge’ The company has entered into mall development through a wholly owned subsidiary ‘ Prozone’ – Website: www.provogue.
816 18.Financial Snapshot Financial and Operating Performance Total Sales PAT Equity Net Worth Market Capitalization (as on 5th April ’07) 2006 (EUR Millions) 26.93 149.077 2.23 the world’s leading M&A alliance .36 2.
8. The Raymond Group the world’s leading M&A alliance .
Premium retail store offering complete range of men’s wear Stand alone stores for Manzoni. Parx. the company has also come retail sector in a big way • Raymond forayed into garment manufacturing through ventures like Silver Spark Apparel Ltd – for tailored suits.The Raymond Group – Background • Incorporated in 1925. Park Avenue. Be: and Zapp Website: www.raymondindia. ColorPlus.com the world’s leading M&A alliance . transformed from textile a major to a conglomerate • Along with manufacturing and brand building.‘The Raymond Shop’ . trousers and jackets EverBlue Apparel Ltd – Jeanswear Celebrations Apparel Ltd – Shirts • The group has its presences in the retail sector through a chain Of the following: Exclusive stores .
Park Avenue. Bangladesh and Nepal – Includes top-of-the-line brands . – the largest one stop retail network in the country. in 150 cities in India – 27 overseas outlets in 15 cities across the Middle East.Raymond. ColourPlus and Parx.The Raymond Group • The Raymond Retail Shops are premium retail stores offering complete range of men’s wardrobe. – There are over 350 stores exclusive 'The Raymond Shop' (TRS) in prime locations. • Reach of the brand is spread all over the country across big cities and smaller towns thereby targeting a wide spectrum of consumers – Also extended its presence in some of the leading Malls with new retail format the world’s leading M&A alliance . Sri Lanka. Manzoni.
Parx. Park Avenue. casual. the world’s leading M&A alliance .Manzoni.The Raymond Group • Brand Stores – exclusive stand-alone stores for brands . outdoor and travel etc. Be: and Zapp! – Each store makes available to customers the entire product range of garments and accessories – The highlight of these stores is that they provide customers a unique and leisurely shopping experience – Encompassing a look to suit every new occasion – formal. ColorPlus.
a chain of 15 stores. Travel and Heritage Wear • • • • The Manzoni Luxury Boutique in New Delhi and Mumbai the world’s leading M&A alliance . Leisure. presenting customers the best of international fashion from well-known Indian designer. right under one roof Parx .The Raymond Group • • Zapp .exclusive stores where one can shop for smart casual shirts. Evening.offers the perfect premium lifestyle experience and address the customers need for Business. trousers and elegant accessories. The Park Avenue store .a fun place for kids to hang out and shop for colourful clothes and accessories Be: .for a cool trendy and ‘chilled out’ out of office look ColorPlus .
55 21.Financial snapshot Financial and Operating Performance Total Sales PAT Equity Net Worth Market Capitalization (as on 5th April ’07) 2006 (EUR Million) 229.26 10.67 206.91 360.00 the world’s leading M&A alliance .
Madura Garment the world’s leading M&A alliance .9.
co. Allen Solly.in the world’s leading M&A alliance . SF Jeans and Peter England Website: www.Madura Garments – Background • Established in 1988 as the garment division of the Indian subsidiary • • • • of Coats Viyella (UK) In 1999. Aditya Birla Group acquired Madura Garments and is now a part of Aditya Birla Nuvo Limited focuses on men’s shirt and trousers and has also diversified into jeans and western wear for women The company owns several brands like Louis Philippe.adityabirlanuvo. Van Heusen.
an international lifestyle brand • Expanding its retailing network by marketing women’s wear under the Van Heusen brand • Recently the company acquired Trinetra. chain of 174 convenience stores in South India the world’s leading M&A alliance . premium clothing and accessories • Has tie-up with ESPIRIT.Madura Garments – Business Strategy • Plans to strengthens its portfolio in women’s wear.
92 the world’s leading M&A alliance .76 1.41 379.50 10.51 32.Financial Snapshot Financial and Operating Performance Total Sales PAT Equity Net Worth Market Capitalization (as on 5th April ’07) 2006 (EUR Millions) 457.701.
Reliance Retail the world’s leading M&A alliance .10.
250 billion The company intend to set up chains of hypermarkets.ril. convenience stores and specialty stores These various retail formats and distribution and stocking hubs will be spread across the 784 cities and 1600 rural towns in the country The company intends to open MBO for the apparels and consumer durables The company already started its operations with ‘Reliance Fresh’ – supermarket Reliance is following a Twin Model for its expansion. discount stores. supermarkets. department stores.Reliance Retail Limited – Background • It’s a wholly owned subsidiary of Reliance Industries Limited • It’s a potential player which is entering the domestic retail market • • • • • • with an estimated investment of around Rs. which includes both owning and leasing retail space Website: www.com the world’s leading M&A alliance .
West Bengal and Andhra Pradesh – To establish pan –India presence in all formats. targeting not only major metros and cities. semi-urban and rural centres. Gujarat.Reliance Retail Limited – Initially targeting the five states of Maharashtra. thereby reaching its target of 784 cities and 1600 rural towns the world’s leading M&A alliance . Punjab. but also the second-tier.
ITC's Lifestyle Retailing Business Division the world’s leading M&A alliance .Wills Lifestyle .
• To enhance product availability through expansion of “Wills Lifestyle” chain of exclusive stores in high potential catchment malls. The brand is now available in over 150 locations through ‘exclusive brand outlets’ (EBOs) and ‘shop-in-shops’. • With a distinctive presence across segments at the premium end. • Wills Lifestyle has been established as a chain of exclusive specialty stores providing the consumer a truly 'International Shopping Experience' through world-class ambience. ITC aspires to build a dominant presence in the apparel market through a robust portfolio of offerings. customer facilitation and clearly differentiated product presentation. ITC has also established John Players as a brand that offers a complete fashion wardrobe to the youth segment. Strategy: • With its brands.Wills Lifestyle Background: • Over the last five years. ITC's Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. it has expanded its basket of offerings with Wills Classic formal wear. the world’s leading M&A alliance . Wills Clublife evening wear and a tempting range of Designer accessories. • Beginning with its initial offering of Wills Sport relaxed wear.
Murjani Group the world’s leading M&A alliance .
in 2005. Murjani. with world renowned. premier brands: Gucci. Calvin Klein. In addition. the world’s leading M&A alliance . premier international brands. Murjani opened eight free standing Tommy Hilfiger stores. moved to India to head the Indian initiative. long term rights to India. watches. B. Strategy: • The India strategy for Murjani. • In 1966. French Connection. Jimmy Choo. • In 2001. the group also launched several licensed categories including eyewear. Managing Director of the Murjani Group. by Mr. to add to its brand portfolio and secured exclusive. revolves around the creation of a unique Multi-Brand Retail Platform.Murjani Group Background: • Founded in 1930. Tumi & Build A Bear. the group based its initial success on full vertical integration in the apparel industry. Murjani identified several major international brands. across six cities. K. the group commenced its transition from manufacturing to designer lifestyle brand development and marketing. • In the second phase of its India strategy. • In the first phase. shoes and fragrance through relationships with some of India’s largest and most respected organizations. for 6 world renowned. Vijay Murjani.
000 sq ft and Max retail stores will cover about 20. Bangalore.000 sq ft and 40.Landmark Group – Lifestyle Stores Background: •The $600 million Dubai-based The Landmark Group entered the Indian market in 1999. with its chain of premium 'Lifestyle Store’.000 sq ft each.Chennai. (source: The Economic Times Report) the world’s leading M&A alliance .000 sq ft. •The Group has its presence in 5 cities . some 2 Home Centre chains and 4 Max outlets. respectively. Home Centre chain and Max stores to 25. Mumbai and Gurgaon through 10 lifestyle stores •The group plans to increase the number of Lifestyle stores. 9 and 35. •While the Lifestyle stores will be spread over 60. Home Centre will occupy anywhere between 20. Hyderabad. It now has 9 Lifestyle stores.
Sundar Raman. Total investment to expand the group’s existing retail formats is estimated at about Rs 775 crore by March ’09.Landmark Group – Lifestyle Stores Strategy: • • • • • • Entered into franchising of international brands in the apparel and footwear categories in India through a separate corporate entity. (source: The Economic Times Report) the world’s leading M&A alliance . Max Retail. It has already introduced two international brands — Kappa (an Italian sportswear brand) and Bossini (a Hong Kong-based casual wear brand). Of which Rs 450 crore will flow into expansion of Lifestyle and Home Centre outlets. said the group’s expansion plans in India entails increasing the footprint of its existing retail formats — Lifestyle. and forging international apparel and footwear brands franchising agreements. Landmark group is currently in discussions with French hypermarket operator Carrefour to roll out the brand in India Also contemplating launching hypermarkets and concept stores in high-fashion apparel. Negotiations are on to launch more international brands to be sold through its Lifestyle and stand-alone stores. LMG Brands India. Landmark Group’s Indian operations president (finance). children and footwear segments. The remaining Rs 175 crore has been set aside for international brands franchising agreements. Home Centre and Max. and another Rs 150 crore into its recently launched value-retail format.
Abbreviations & Definitions – RMG – Readymade Garments – MBO – Multi-Brand Outlet – EBO – Exclusive Brand Outlet – Supermarket .are small stores which specialize in a specific range of merchandise and related items – Department store is a retail establishment which specializes in selling a wide range of products without a single predominant merchandise line • usually sell products including apparel. furniture. appliances and electronics – Hypermarket .is a departmentalized self-service store offering a wide variety of food and household merchandise – Specialty stores . and executed keeping in mind satisfaction of consumers • Eg: Carrefour the world’s leading M&A alliance . constructed.is a superstore which combines a supermarket and a department store • Includes products ranging from groceries to general merchandise • They are planned.
SBI Capital Markets Limited A Brief Introduction the world’s leading M&A alliance June 2007 Strictly Confidential .
In January 1997.84% stake in the equity of SBI Caps As part of State Bank Group with the full backing of SBI. having worked for several fund-raising. SBI Caps has direct links with a number of Multilateral Agencies and International Financial Institutions No. strategic sale and other advisory transactions for Government of India and several State Governments. professional and customer focussed world. rights issue and private placement of equity & debt during the past 5 years Pioneer in Securitisation and Privatization: Accomplished the first true Securitisation in the power sector in the country and the only investment bank to be co-opted on the RBI’s Working Group on Asset Securitisation as a Special Invitee Advisor to Government of India on crucial issues like studying India’s Power requirements and Role of Central PSUs.class Investment Banking services the world’s leading M&A alliance .84% stake Vision . Securitisation of SEB overdues and the only non-lending institution to be a participant in a nodal committee set up by the Ministry of Power Strong relationship with the Government. the Asian Development Bank took over 13.16% stake 13.1 Fund Mobiliser in the Country. (SBI Caps) was founded in 1986 as a wholly owned subsidiary of the State Bank of India.To be the best India-based Investment Bank Mission. 86.1219.About SBI Capital Markets Limited State Bank of India Asian Development Bank SBI Capital Markets Ltd. its Indian associates and its overseas subsidiaries.To provide credible. the country’s largest bank. raising over Rs.11 billion through public.
Hyderabad. Chandigarh Chandigarh and Guwahati and an alliance in Bangladesh. SBI Caps is amongst the earliest players in the Indian Capital Markets with fully integrated operations offering the entire range of Investment Banking services under one umbrella the world’s leading M&A alliance .Network of Offices & Human Resources at SBI Caps SBI Caps Corporate Office is located in Mumbai and there are eight Regional Offices in Delhi. Bangalore. The Company has Guwahati New Delhi Ahmedabad Kolkata Hyderabad Mumbai Bangalore a strong force of professionals with rich and diverse experience in various spheres of Investment Banking. Chennai. Ahmedabad. accounting and taxation. management. Kolkata. The employees in the management and executive cadre consist of experienced Chennai bankers deputed from State Bank of India and direct recruits comprising Broking Research Investment Banking Sales & Distribution various professionals from reputed Management Institutes and qualified Chartered Accountants. banking. SBI Caps pool of professionals constitutes the best talent drawn from every relevant field .finance.
Tie-up with CLSA for overseas acquisition.Strategic Associations / Tie-ups SBICAP (UK) SBICAP (UK) Limited. SBICAP has entered into tie-ups with investment banks in Sri Lanka. SBI Capital Markets Limited is the Indian representative of M&A International Inc. floated in 2006 is a wholly owned subsidiary of SBI Capital Markets Limited to provide services in the areas of Cross Border M & A. etc. Oman and Qatar CLSA M&A International Other International Tie-ups the world’s leading M&A alliance . FCCBs /GDRs. strategic investors & international offerings such as ADRs and GDRs. which has International network in 38 Countries. Bangladesh. Private Equity.
Domain Expertise • Mergers & Acquisitions & Advisory Privatisation Joint Venture M&A and Takeovers Private Equity/FCCB Placement Financial / Business Restructuring Business Valuation Rights Issues • Project Advisory & Structured Finance Project Appraisal Structured Finance Credit Syndication Infrastructure Advisory Securitization • Capital Markets Equity and Debt Origination Private Placements International Offerings • SBICAP Securities (subsidiary of SBICAPS) Stock Broking Sales & Distribution Securities Research the world’s leading M&A alliance .
Leveraging M & A International Tie-up Offices of member firms: Amsterdam Atlanta Baltimore Beijing Boston Budapest Cleveland Dallas Hamburg Hong Kong Jacksonville Ljubljana Los Angeles Miami Moscow New York Philadelphia Riga Santiago Seattle Seville Singapore St. the world’s leading M&A alliance . Petersburg Tallinn Toronto Vilnius Antwerp Barcelona Belgrade Bern Buenos Aires Chicago Copenhagen Dublin Helsinki Istanbul Kiev London Madrid Mexico City Mumbai Oslo Richmond Sao Paulo Seoul Shanghai Stockholm Sydney Tokyo Turin Warsaw San Francisco SBI Capital Markets Limited is the exclusive Indian representative of M&A International Inc.
leads the midmarket M&A league tables •* Completed transactions by volume in 2006 (value US$ 5m 250m) •Source: www. com.mergermarket.Leveraging M & A International Tie-up •For the fifth year running M&A International Inc. M&A International Inc. Global mid-market league table the world’s leading M&A alliance .
Karulkar@sbicaps.Thank You world’s leading M&A alliance SBI Capital Markets Limited Mergers & Acquisition and Corporate Advisory Group 202.sbicaps. India’s largest bank Contact Persons: Meenakshi Iyer Vice President & Group Head Meenakshi. Colaba. Maker Tower ‘E’. Cuffe Parade.com the . Mumbai – 400 005.Iyer@sbicaps. India. T# +91-22-22189166-69 F# +91-22-22186367/8332 Website: www.com A Subsidiary of State Bank of India.com Sameer Karulkar Assistant Vice President Sameer.
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