INDUSTRIAL ANALYSIS REPORT

ON

BRANDED GARMENTS: A CAMPARATIVE

STUDY OF MAJOR PLAYERS IN INDIA

AN A+ RATED BUSINESS SCHOOL

SCHOOL OF MANAGEMENT SCIENCES

VARANASI

Submitted To: Submitted By:

Mr. Syed Ali Arshad Omprakash Kumar
Lecturer RM/02/28
SMS-VARANASI PGRM
 INDUSTRIAL ANALYSIS REPORT
ON

BRANDED GARMENTS: A
CAMPARATIVE STUDY OF MAJOR
PLAYERS IN INDIA

Submitted To: Submitted By:

Mr. Syed Ali Arshad Omprakash Kumar
Lecturer RM/02/28
SMS-VARANASI PGRM
 DECLERATION

I, OMPRAKASH KUMAR student of PGDM (RM) I st Semester at SMS, Varanasi

here by declare that the Industrial analysis “Branded Garments industry in India” Is
the result of my own effort, is raised on information collected, guidance given by my
mentor & faculty member.

The industrial analysis is correct to the best of my knowledge this report so far has not
been published anywhere else.

OMPRAKASH KUMAR
PGRM
RM/02/28
 ACKNOWLEDGEMENT

Nothing can be gained or acquired without hard work which leads to success.
The success of my survey work is the amalgamation of my hard work and co-
operation of respondents, who delivered their precious time without any hesitation.

I do not have adequate words to convey my emotion rather than feeling of gratitude,
for the people who helped me in making my survey report purposeful.

I take the opportunity to convey my sincere gratitude to my research mentor Mr.Syed

Ali Arshad for his helpful guidance during my survey period.

First of all I would like to thank god and my parents who showered their blessing
upon me in each step of my survey & I express my deep sense of gratitude to prof.
P.N Jha, Director General of SMS, Varanasi, for providing me golden opportunity to
bring up talent.

I am highly thankful and immensely obliged for his constant guidance and words of
inspiration.

Last but not the least, I specially wish all my friends a vote of thanks as without their
valuable supports this report would have not been possible.
 CONTENTS

1. INTRODUCTION

INDUSTRY OVERVIEW
MAJOR PLAYERS IN BRANDED GARMENT INDUSTRY

2. RESEARCH OBJECTIVES

3. RESEARCH METHODOLOGY

4. INDIVIDUAL ANALYSIS OF BRANDED GARMENTS

INDUSTRY

5. COMPARATIVE ANALYSIS OF BRANDED GARMENTS

INDUSTRY

6. FINDINGS

7. CONCLUSION

8. LIMITATION

9. BIBLIOGRAPHY

10. ANNEXURE
 PREFACE

Industry profiling is finding of data, relevant to specific industry. This project is a

written presentation with observation and references derived from the secondary data.

The report starts by giving an industry profile, internal view about the company and
their product line. In order to achieve the objective and better under stand the problem
of industry, it was decided to collect the secondary data concerning to particular
industry.

Industry profiling was aimed to know the status of different Garment firms. All the
findings are analysed through tabulation data, graph, chart and percentage. At the last
of the report you can find the suggestions and the recommendations based on the
information gathered by data.

OMPRAKASH KUMAR
RESEARCH METHODOLOGY

“Research is a careful investigation or the inquiry through search for the facts in the
branch of knowledge. Research methodology refers to the methods, technique that are
used for the activities involved in performing the research operations such as making
observation, recording data etc.”

Types of research:
Analytical and descriptive

Data source:
Secondary data:-

-CMIE data base

-Through internet

-Business newspaper

-Reference Books

Data Collection Method:

Secondary data

Statistical tools:

Graph
Bar diagram
INTRODUCTION

INTRODUCTION

Garment is regarded as one of the basic needs of human being. From the early stage
of human history it gained much more attention and developed overtime. The nature
of clothing is so obvious and its presence so universal that we often overlook the
brilliance of its invention. In considering what textile and clothing is, we must
remember that the origin of the earliest and humblest cloth is lost to us; it pre-dates
our recorded history; it precedes the age of metals and the invention of the wheel. As
our civilization have grown, so has fabric developed with us, an integral part of every
cultural stage, a resource in every struggle, a comfort in the most personal and
domestic spheres of lives. Each of us has a relationship with fabric from cradle to
grave (Gale and Kaur, 2002).
The term “garment” is used interchangeably with “apparel” and “clothing”. The
“garment” includes readymade woven garments as well as knitwear and hosiery. The
products of the garment industry are very diverse ranging from industrial work-wear
to basic shirt. The concept of “textile complex” or “textile chain” includes the ginning
of fibre, spinning yarn, weaving fabrics and operations like dyeing, processing,
printing, finishing the fibre and finally making the Readymade Garments (RMG).

Garment making is one of the world’s most globalized industries. Almost every
country, irrespective of its stage of development, is involved in garment
manufacturing and trading. Many industrialized countries have had an important
textile and garment manufacturing sector at some point in their history. In fact,
almost without any exception, textile/garment was the first industry which a country
was able to develop and eventually led to the development of other industries.
Frequently, the growth of the garment sector has been seen as a first step on the road
to industrialization, bringing growth and prosperity (war on want 2001).Growth in
textile sector benefits other sector through increased demand for material inputs or
machinery and equipment. In addition, the textile and apparel sectors depended on the
presence of many modern economic activities. Through developing export- oriented
textile and apparel industries, a country acquires crucial knowledge and skill such as
marketing, advertising, transportation, and communication. These advances highlight
the importance of the textile and apparel industries to a country’s development
process (siddiqi, 2005).

The apparel industry is one of India's largest foreign exchange earners, accounting for
nearly 16% of the country's total exports. The 1996 Indian textile exports
approximately amounted to Rs.35,000 crores of which apparel occupied over
Rs14,000 crores.

It has been estimated that India has approximately 30,000 readymade garment
manufacturing units and around three million people are working in the industry.
Today not only is the garment export business growing, enthusiasm in the minds of
the foreign buyers is also at a high. Today many leading fashion labels are being
associated with Indian products. India is increasingly being looked upon as a major
supplier of high quality fashion apparels and Indian apparels have come to be
appreciated in major markets internationally. The credit for this goes to our exporter
community.

Consistent efforts towards extensive market coverage, improving technical

capabilities and putting together an attractive and wide merchandise line has paid rich
dividends. But till today, our clothing industry is dominated by sub-contractors and
consists mainly of small units of 50 to 60 machines. India's supply base is medium
quality, relatively high fashion, but small volume business.

Recent recession in Europe and the South Asian currency crisis have also contributed
their own bits to the decimating Indian exports. Though these are expected to fizzle
out soon, there is no reason for complacency on the part of Indian exporters or of the
garment industry. The industry will be soon faced with open competition shorn of
quotas or tariffs. Thus the need of the hour is to enlarge both manufacturing as well as
the marketing base. Inculcation of a spirit of innovation by way of research and
development and tapping new markets especially in South Africa, Central Africa,
CIS, East European countries, Latin America and Australia is also mandatory for
export growth.

With a modest beginning in early sixties, the export of readymade garments from
India has registered a consistent and imperative growth rate of 30% over the last three
decades. The exports of readymade garments alone contribute almost 15% to the
countries foreign exchange revenue. Total contributions from exports of Textiles
constitute almost 30% of foreign exchange. On a rough estimate two million people
are earning their living from the RMG (Ready Made Garment) trade earnings. Inspite
of these impressive statistics India’s share in international RMG trade is less than 3%
which indicate the tremendous scope that exists for the growth of the Industry.

RMG industry in India is buoyant and after decades of exposure to international

competition, it has identified its strength, weakness and constantly endeavoring to
upgrade the manufacturing facilities, boots the production and improves the quality of
the merchandise. Government of India, under its liberalization policy has also moved
to remove the bottlenecks in the growth of industry and current decade can see a
speedy growth of the RMG industry. Target set for the export of textiles by the turn of
the century is US$ 20 billion.

India possessed one of the largest modern textile industries in the world, but relative
isolation from markets during the phase of autarkic economic policy and State trade
barter agreements (supplying goods to uncompetitive markets in the former Soviet
Union and Eastern Europe) radically reduced the industry’s international
competitiveness.

A regulation of the mid-1950s restricted RMG manufacture to the small-scale

handloom sector and, as in China and Egypt, India was late in developing clothing
industry. However, the hand-loom industry developed a .power loom. Sector that
proved highly competitive in the domestic market, eating into the markets of mill
production.

The government in a misguided attempt to safeguard employment prevented the

bankrupt mills closing, keeping them as sick. Industries with public subsidies. The
policy failed to save the mills. By 1993, power looms produced 58 per cent of Indian
textile output (hand-looms, 21 per cent; knitting, 12.5 per cent; and the formerly
dominant mills, 7.5 per cent). Between the second half of the 1980s and the first half
of the 1990s, RMG production (exclusively from the small-scale sector) expanded at
an average annual rate of 19 per cent, double the rate of growth of total exports, to
become the largest earner of foreign exchange.

The decline of the old mill industry. Concentrated in two big cities, Ahmadabad (in
Gujarat) and Mumbai (Maharashtra).was paralleled by the rise of the power loom
industry in smaller cities. In Surat (Gujarat) and in Bhiwandi, Malegaon, Ishalkaranj
within range of the Mumbai metropolitan region. Tamilnad, the third important State
in textile production, developed a different pattern. Modern mills in Coimbatore
continuing alongside five integrated urban-rural clusters, of which one, Palladum-
Tirupur-Somanur-Avanashi is one of the most important.
This is a complex of small-scale units that have developed slowly over a long period
of time (unlike Shenzhen and Mirpur-Dhaka), combining basic processing from
originally locally grown raw cotton, spinning, weaving and RMG manufacture. The
southern centers now produce over half the national output of cotton yarn. Tirupur has
become known as a prototype of an industrial .cluster. a focus for both a mass of
small scale units at each stage of an integrated production line, and of a scatter of
towns and villages, a network of collaborative manufacture, linked to household
production. Beginning historically with the elementary processing of raw cotton, a
water shortage cut local raw cotton output and the peasants moved on to cloth
production and undergarment manufacture (while often retaining a foothold in
cultivation), assisted from the 1960s by the adoption of power looms. From there, the
producers developed the manufacture of shirts for local consumption, and then sports
and leisurewear. From the early 1980s, they moved into exports.

A key factor here is the legal restriction of RMG manufacture to the small-scale
sector, limiting how far a production unit or firm could grow. Instead of expanding
existing units, businessmen started new businesses when the old reached the legal size
limit. Concentration came not by unit but by family. Possibly a hundred firms (owned
by a very much smaller number of families) produce the exports, with 1-2,000
subcontractors.

The labour force consists of permanent or temporary migrants, commuters, and rural
home workers. Thus the industry does not have any clear territorial limits. The pattern
has allowed the town to grow without major migrant squatter settlements as
elsewhere, but still with severe problems of urban sewerage, water supply, solid waste
disposal etc.Local government has played very little role in this process of growth,
and the State and central governments have been late and limited in their responses.
However, the business class, organized in the Tirupur Export Association has
undertaken a wide range of improvement schemes.

Industrial estates, transport, education and design, and in its latest scheme, in
infrastructure (in water and sewerage).Tirupur.s industry lacks scale economies, has
dispersed weaving centers (often using antiquated machinery), poor transport etc., but
has still experienced remarkable output growth in a quite peculiar settlement pattern
of development, combining rural and urban economic growth.
INDUSTRY OVERVIEW

The garment industry is one of the most globally dispersed of all industries across
both developed and developing countries, with some garment companies having their
goods Produced simultaneously in as many as forty countries around the world
(Bonacich, 1994). It is an organizationally complex industry, containing elements of
both very new and very old organizational practices, and changing constantly in its
organization and geography (Dicken, 1998).

The sector has received more systematic and persistent protection than any other
(Cline, 1987, Douglas, 1989) and has been the subject of trade tensions between
developing and developed nations.

The business of readymade garments is increasing day by day due to changes of

Fashions in human life. The business is not only in India, there is big export market.
In the RMG sector Jean pants is showing good growth in local and export market.
There are number of branded Ready made garments manufacturing Units in India.
Even though the small scale units also surviving in the country because of verities.
Besides being one of the favorite attres, jeans have also gained popularity as a casual
wear too. These days several companies are into the business of making jeans pants
and also supplementary items like buttons, zips etc.

Major’s players

Raymond Apparel Ltd.

Zodiac clothing co. Ltd.

Provogue (India) Ltd.

Vishal Retail Ltd.

Koutons Retail India Ltd.

Raymond Apparel Ltd.
Years ago, when the Singhania family was building, consolidating and expanding its
various businesses in Kanpur, one Mr. Wadia was in a similar manner setting up a
small woollen mill in the area around Thane creek, 40 kms away from Bombay. The
Sassoon, a well-known industrialist family of Bombay, soon acquired this mill and
renamed it as The Raymond Woollen Mills.

Around the same time, the Singhanias aimed to broaden their business horizons. The
family's sharp business foresight led to the acquisition of The Raymond Woollen
Mills.
When the grandson of Lala Juggilal, Lala Kailashpat Singhania took over Raymond in
1944, the mill primarily made cheap and coarse woollen blankets, and modest
quantities of low priced woollen Fabrics.
The vision and foresight of Mr. Kailashpat Singhania greatly helped in establishing
the J.K. Group's presence in the western region. Under his able stewardship,
Raymond embarked upon a gradual phase of technological up gradation and
modernization; producing woollen Fabrics of a far superior quality.
Under Mr. Gopalakrishna Singhania, the mill became a world-class factory and the
Raymond brand became synonymous with fine quality woollen Fabrics
When Dr. Vijaypat Singhania took over the reins of the company in 1980, he injected
fresh vigour into Raymond, transforming it into a modern, industrial conglomerate.
His son Mr. Gautam Hari Singhania, the present chairman and managing director has
been instrumental in restructuring the group. With the divestment of its non-core
businesses, the group has emerged stronger, with a more focused approach.
Today, with a 33 million-meter capacity in wool & wool-blended fabrics, Raymond
commands an over 60% market share in worsted suiting in India and ranks amongst
the first three fully integrated manufacturers of worsted suiting in the world. We are
perhaps the only company in the world to have a diverse product range of nearly
20,000 design and colours of suiting fabric to suit every age, occasion and style. We
export these to over 50 countries, including USA, Canada, Europe, Japan and the
Middle East.
A 100% subsidiary of Raymond Ltd., Raymond Apparel Ltd. (RAL) ranks amongst
India's largest and most respected apparel companies. We bring to our customers the
best of fabric and style through some of the country's most prestigious brands-
Raymond Finely Crafted Garments, Manzoni, Park Avenue, ColorPlus, Parx, Be: and
Zapp! and Notting Hill. Even as the brand keeps evolving through its cuts, styles,
apparels and collections, one thing has remained unchanged over time is the
unrelenting pursuit of excellence!
Products and Brands

Manzoni is a luxury lifestyle brand offering the discerning customer a

super premium range of formal wear and sportswear including shirts, suits, trousers,
jackets, ties and leather accessories. Our exclusive designs provide customers the best
in contemporary international style & luxury. Each garment is crafted from the most
exotic cotton silk, linen and superfine wool, the best-in-the-world linings, interlinings
and threads sourced from around the globe.

Launched in 1986, Park Avenue is today, India's most admired formalwear brand. It
offers stylish and innovative wardrobe solutions to gentlemen for all their dressing
needs, be it Business, Evening, Leisure, Travel or Heritage Wear. The brand has
received several awards. Recently, it had the honor of being the 'Most Admired Brand'
at the Lycra Images Fashion Awards 2007 for the third consecutive year.

Crossing the gender divide, Park Avenue launched 'Park Avenue Woman' - a
complete range of Business Wear for women. ‘Park Avenue Woman’ is designed
specially for the working women professionals of today.

ColorPlus is one of India's premium and most respected casual

wear brands offering customers a range of shirts, trousers, knits and survival gear.
ColorPlus constantly innovates processes and technologies offering buyers new
worlds of comfort. Some of the technological innovations it is well known for;
include thermo-fused buttons, golf ball wash, soft jeans, wrinkle free technology,
stain-free fabric, and the cone dyed technique.
Adding new color now to the woman’s wardrobe, ColorPlus recently launched
ColorPlus Woman - An exclusive range of smart-casual clothing.

Parx is a 'premium casual lifestyle' brand bringing customers a range

of stylish semi-formal and casual clothes that reflects the easy, relaxed attitude of the
energetic 22-30 year old. Parx was launched in 1999 to cater to the smart and
fashionable clothing segment.

The burgeoning children's wear market has now turned stylish with Zapp!
- our range of stylish and fashionable kids wear. The brand brings to 4-12 years a
wide range of clothes, accessories, bed and bath linen and more. The first Zapp! store
has been launched in Ahmadabad with ten more on their way for kids across the
country.

Notting Hill reflects style and manifests originality of today's

fashion- conscious and discerning young professionals at an affordable price. The
brand collection features a spectrum of men's lifestyle products comprising of suits,
shirts, trousers, jeans, t-shirts and also accessories like ties, handkerchiefs and socks.

Be: HOME is a specialty multi brand Home Retail Chain that present
elegant, soft home furnishings & accessories which are sourced from across the globe
from reputed labels (private & International). Spanning from a mid to premium
pricing range, Be: HOME provides an assortment of quilts, blankets, robes, apparels,
wall décor, vases, candles, gourmet cooking range and much, much more under one
roof to provide the perfect look for your home.

The Raymond Shop is a premium retail store offering complete

wardrobe solutions for men, which includes top-of-the-line brands - Raymond,
Manzoni, Park Avenue, ColourPlus and Parx.
AWARD
The 'Park Avenue' brand of the Company was adjudged the 'Most Innovative Brand'
of the year at the Lycra Images Fashion Awards 20

Contact Information
 CMIE
Raymond Apparel Ltd. . database

Registered office

Address

New Hind House, N.M. Marg, Ballard

Street Estate,

City Mumbai Pincode 400001

State Maharashtra

Email address webmaster@raymondindia.com

Website www.raymondindia.com

Telephone and fax

numbers

Country code 91

Tel no. 022-66609999

Fax no.
 Zodiac clothing co. Ltd.

Company History - Zodiac Clothing Company

YEAR EVENTS
1984 -The Company was incorporated as a private limited company on June14 and
it became a Public Limited Company on January 14, 1994.It was
promoted by M. Y. Noorani, Kewal K. Seth, Anees Y. Noorani and
Salma Y. Noorani.

- The Company set up a 100% Export Oriented Unit at Umbergaon,

district Valsad, Gujarat with a capacity of 1 million units per annum to
manufacture and export men’s clothing’s including shirts, beach-wear
and pyjama suits.

- Production techniques were introduced enabling the

Company to emerge as a major exporter.

1989 - The Company redesigned and modernised the entire plant with
technical assistance from a leading European consultancy company.

-After amalgamations of Knitwear Pvt. Ltd., the Company got

additional facilities to manufacture 12, 88,000 unit p.a. based on
standard production.

1992 - Effective April, Zodiac Textiles & Apparels Export Pvt. Ltd.
(ZTAEPL), Multiplex Packaging Pvt. Ltd. (MPPL) and Bangalore
based Knitwear Pvt. Ltd. (BKPL) were amalgamated with the
company.

- As per the scheme of Amalgamation: (i) 48 equity shares of Rs 100

each in the Company for every one equity share of Rs 10 each held in
XTAEPL. (ii) 48 equity shares of Rs 100 each in the company for
every 100 equity shares of Rs 100 each in MP (iii)44 equity shares of
Rs 100 each in the Company for every 1000 equity shares of Rs 10
each in BKPL. Accordingly 1,11,800 No. of equity shares of Rs 100
each of the Company were allotted to the amalgamating company.

1994 - During June, the company offered for sale 8,48,300 No. of equity
shares at an offer price of Rs 110 per share.

1995 - Mayfair (Mumbai) Ltd., Multiplex Collapsible Tubes Ltd., Zodiac

Clothing Company S.A., are subsidiaries of the company

- 33,93,000 No. of equity shares allotted. Of these 22,75,000 shares

allotted at par to promoters and their associates.11,18,000 shares
allotted in pursuance of amalgamation.

2000 - Zodiac has launched its latest range of formal and semi formal
shirts dubbed The Changeant Collection.

- The Company has launched a new range of casualwear targeted at the

youth market. The range called ZOD - includes shirts, trousers,
bermudas and boxer shorts.
 - Zodiac has launched Creme de la Creme, a range of ties.

- Zodiac Clothing Company is merging two privately-held companies,

Milliard Clothing and Merino Knitting, with itself to strengthen the
garment business.

2003 - Mr. Deepak Parekh appointed as Alternate Director to Dr.Heinrich-

Dietrich Dieckmann.

- BOD approved a dividend of Rs.5/- per equity share for the year
ended March 31, 2003

- Dr.Heinrich Dietrich Dieckmann is appointed as an Ordinary

Director liable to retire by rotation. Mr.Deepak Parekh ceased to be an
alternate director to Dr.Heinrich Dietrich Dieckmann and later ceasing
to be an additional Director consequent to his appointment as an
Ordianry Director.

2004 -Zodiac Clothing Company, the Mumbai-based textile major, has

acquired a Dubai-based shirt manufacturing company for close to Rs
25 crore

2007 -Zodiac Clothing Company Ltd has appointed Mr. Vijay Kumar H.
Modi as a Company Secretary and Compliance Officer of the
Company with effect from 31st May 2007.

Overview:

Clothing exports from India have grown a mere 7% during 2006-07, to USD 9.00
billion from USD 8.40 billion in 2005-06. When looked at in terms of market share of
global trade in clothing, it is a mere 3.25%. When compared with China (integrated
with Hong Kong) whose share is 35%, one appreciates the enormity of both the
problem as well as the opportunity.

One can conclude that the opportunity, post quota elimination, has not been
adequately availed of. The appreciation of the Rupee by over 14% since July 2006,
the steep increase in interest rates, the fresh burden on account of wider applicability
of Service Tax (with no resolution yet of the refund mechanism for the earlier levied
Service Tax), among other factors, has created a significant increase in cost disability
for the industry.

Given this scenario, the company has been successful in increasing its export turnover
by 19.5%. This has been achieved by the building of new markets, addressing of new
segments and building new relationships in existing markets as well as by sharpening
our competitiveness and enhancing our value added services.

As far as the domestic market in India is concerned, robust economic growth with its
impact on employment, income and consumption, growth of organized retail with its
notable penetration into Tier II cities, additional mall space, rising urbanisation and
favourable demographics are driving the market to grow, all resulting in sustained
increase in demand.

Industry Structure and Developments:

The clothing industry has the potential to drive the growth of both the Indian economy
as well as of employment. As per the estimates of the Textile Committee in a study
conducted by them, employment in the clothing industry was estimated at 5.83
million in 2007, making it not only the largest single generator of employment after
agriculture, but also a provider of gender-sensitive, quality employment in the
manufacturing sector.

India continues to have the potential to address the entire supply chain from fibre to
clothing, and one cannot overemphasise the relevance of clothing, which achieves the
highest value addition for the nation from the entire value chain.

The investment in the sector, however, is not growing as remarkably as it is growing

in our competitor countries, despite the Textile Up gradation Fund, the SEZ Scheme
and Integrated Textile Parks that the Ministry of Textiles has been euphoric about.
Indian companies are planning their growth/diverting their investments to some of the
competitor countries, despite the potential in India as well as the vital need to generate
employment in India. This is because of the cost disabilities that remain unaddressed.
We cannot continue in the mistaken belief that we can get away with the export of our
taxes, most notably, Service Tax and Fringe Benefit Tax, besides State levies like
Octroi, Entry Tax and other taxes.

The measures recommended in the past are still valid and need to be addressed to spur
investment in, and sharpen the competitiveness of, the clothing industry:

(a) Neutralisation of taxes not relevant to export - elimination of complex state and
central taxes and levies.

(b) Provisions in the Finance Act, which are detrimental to export and need to be
addressed

(c) Competitive countries across the world are creating the right conditions using
various instruments, which we need to consider.

(d) Bi-lateral/Multi-lateral Trade Agreements Speed up FTA with the EU for which
we have engaged in discussion with them. We must also initiate discussions on FTA
with the US.

(e) Efficiency in delivery within the infrastructure sector.

(f) Labour laws - modifying labour laws to generate employment.

(g) Formulating WTO-compatible tax benefits, Since the Profit Before Tax is
adversely affected, this could be salvaged, to some extent, by the Profit After Tax
being addressed.
Opportunities and Threats:

The temporary restraints imposed by the EU and the US on the export of several
categories of clothing from China will stand withdrawn on 1st January, 2008 for the
EU and on 1st January 2009 for the U.S. It is worth mentioning here that our
company's core product for export, i.e. men's shirts has not been subjected to this
temporary restraint by the EU and has, therefore, grown despite harsh competitive
pressures from China in the EU market.

There is likely to be continuous realignment of global clothing trade due to three

factors:

(a) Fierce competition for market share among the South-East Asian and South Asian
countries with the temporary restraint on China being withdrawn.

(b) With the near write off of the Doha Round, Bilateral Agreements would gain
added significance.

(c) With the recent wide expansion of the EU member states, ten East European
countries have become members of the EU and are consequently losing their
competitiveness in the clothing trade, which will cause a shift of the industry from
these countries.

The next few years continue to hold a major opportunity as well as a threat for India's
clothing industry.

The company's branded business in India continues to grow in a healthy manner.

Rising urbanisation and the demographic dividend, spurred by robust economic
growth with its impact on employment, income and consumption and creation of
infrastructure for, and growth of, organised retail, including in Tier II cities, are
driving the market to grow, resulting in sustained increase in demand.

India needs to sharpen its competitiveness to fully harvest the potential offered by
virtue of having the entire supply chain from fibre to clothing. Leveraging its raw
material base and abundant sustained supply of labour (whose productivity needs to
be sharply increased) is the need of the hour, for which the industry and Government
need to act in tandem, especially to address the cost disabilities, to achieve sustainable
competitive advantage.

Segment wise/Product wise Performance :

Segments have been identified in line with the Accounting Standard on Segment
Reporting, taking into account the organization structure as well as the differential
risk and returns of these segments. The company operates mainly in the clothing and
accessories segment and has no re-portable business segment, which exceeds 10% of
the total turnover as required by Accounting Standard [AS 17] of ICAI.

Geographical Segment is identified and given below:-

Year ended 31st March 2007:

 [Rs.in lakhs]
India Rest of Total
the World

Segment Revenue 9,339 12,165 21,504

Carrying cost of
Segment Asset 12,916 2,694 15,610
Addition to Fixed Assets 721 - 721

Risks and Concerns:

In addition to the concerns expressed above, China's continued subsidizing of its

clothing exports, further vitiated by India's cost disabilities, continue to undermine
India's clothing exports substantially.

Internal Control System and their Adequacy:

The company has a proper and adequate system of internal control to ensure that all
assets are safeguarded and protected against any loss from unauthorized use or
disposition and that transactions are authorized, recorded and reported correctly. The
company's internal control systems are supplemented by an extensive programme of
internal audit conducted by an external auditor periodically and reviewed by the
management together with the Audit Committee of the Board. The emphasis of
internal control prevails across functions and processes, covering the entire gamut of
activities including finance, supply chain, sales and distribution, marketing etc.

Company's Financial Performance.

(Rupees in Crores)
2006-07 2005-06
Sales & other Income 216.85 178.67
Profit Before Taxation 23.70 13.22
Provision for Taxation
Current Tax 7.85 4.00
Wealth Tax 0.02 0.03
Deferred Tax 1.40 (0.21)
Fringe Benefits Tax 0.35 0.38
Profit After Taxation 14.08 9.02
Short Provision
for Taxation (0.01) 0.01
Profit for the Year 14.09 9.01
Balance of Profit
Brought forward 46.58 43.34
Profit Available for
Appropriation 60.67 52.35
Appropriations
Transfer to General Reserve *1.50 1.00
Interim Dividend 4.18 -
Tax on Dividend (on Interim) 0.59 -
Proposed Final Dividend 0.84 4.18
Tax on Proposed Final Dividend 0.14 0.59
Balance Carried Forward *53.43 46.58
Total *60.67 52.35

* subject to approval of the Members

Turnover & Profits :

Your Directors wish to inform you that during the financial year ended 31st March
2007, the turnover of the company increased from Rs.167.66 crores in the previous
year to Rs. 203.24 crores. The net profit before tax stood at Rs. 23.70 crores as against
Rs.13.22 crores in the previous year. The net profit after tax for financial year ended
31st March 2007 stood at Rs. 14.09 crores as against Rs. 9.01 crores in the previous
financial year.

The interest cost is 0.78% of sales which, when compared to the rest of the industry
among the listed entities, is significantly lower.

Human Resources Development / Industrial Relations:

The role of Human Resources continues to remain vital and strategic to the Company.
Employee recruitment and management is a key focus, and processes and policies are
in place to attract and retain employees of a high calibre. The Company recognises the
need for continuous growth and development of its employees to meet their career
objectives and equip them to meet growing organisational challenges.

Industrial relations have continued to be harmonious at all units throughout the year.
Measures for safety of employees, welfare and development continue to receive top
priorities.

During the year, under the Employees Stock Option Plan, approved by the members
in the last Annual General Meeting, to reward the core team, the company granted
2,91,000 options at the exercise price of Rs.255.40 per share to eligible employees
and independent (non promoter) directors.

Cautionary Statement:

Statements in this report on Management Discussion and Analysis describing the

company's objectives, expectations or predictions may be forward looking statements
within the meaning of applicable security laws or regulations. These statements are
based on certain assumptions and expectations of future events. Actual results could
however differ materially from those expressed or implied. Important factors that
could make a difference to the company's operation include global demand-supply
conditions, finished goods prices, raw materials cost and availability, changes in
government regulations and tax structure, economic developments within India and
the countries with which the company has business contacts and other factors such as
litigation and industrial relations in India, trade agreements, especially with the EU &
the U.S.
The company assumes no responsibility in respect of forward looking statements
herein which may undergo changes in future on the basis of subsequent
developments, information or events.

Contact Information

Zodiac Clothing Co. Ltd. CMIE

database

Registered office

Address
Apte Properties, 10/76, Off Dr. Haines
Road, Worli,
Street
Mumbai
400018
City Pincode
Maharashtra
State
merch@zodiacmtc.com
Email address
www.zodiaconline.com
Website
Telephone and fax
numbers
Country code 91
022-66677000
Tel no.
66677279
Fax no.
 Provogue (India) Ltd.

HISTORY AND CORPORATE STRUCTURE

The Company was incorporated on November 11, 1997 as Acme Clothing Private
Limited. The Company was converted into a public limited company (i.e. Acme
Clothing Limited) on March 11, 2005, in terms of a special resolution dated March 2,
2005 passed under Section 31 and Section 44 of the Act in a Meeting of the
Shareholders of the Company. The name of the Company was subsequently changed
to Provogue (India) Limited and a fresh certificate of incorporation dated March 14,
2005 was issued by the Registrar of Companies, Maharashtra, Mumbai.

The Company launched the fashion brand ‘Provogue’ in March 1998 and within a
short span of seven (7) years, it has established a strong brand identity in the minds of
the urban consumer. The Company’s philosophy of ‘creating trends’ in fashion, an
aggressive marketing strategy, coupled with high profile promotional events and its
distribution strategy of retailing through selective stores and malls has resulted in
Provogue being now positioned as a leading fashion brand in India.

The company has, over a period of time, entered into hospitality business by opening
a lounge under the brand name

Provogue Lounge.
These lounges work as a store in the daytime and are converted into a restaurant and
refreshment room in the evening with an extensive selection of food, beverages and
entertainment at value prices. Recently, the Company acquired from Acme Global the
entire business of export of textile; textile machinery and textile related chemicals and
operates these businesses as its division under the name Acme Global. Mr. Nikhil
Chaturvedi promoted the Company along with his two brothers, Mr.Akhil Chaturvedi
and Mr.Salil Chaturvedi, and friends Mr.Deep Gupta, and Mr.Nigam Patel. Later, Mr.
Rakesh Rawat was also inducted into the company as
a promoter.

The evolution of the Company can be traced through the following phases:

Phase I: The launch

The beginning of 1998 saw Provogue being launched in a Multi Brand Outlet, i.e. The
Bombay Stores, Mumbai and progressing to 120 Multi Brand Outlets by the end of
1999. The first exclusive ‘Provogue’ store was opened in Lokhandwala Complex,
Andheri, Mumbai in the year 2000. The Company was able to achieve market
penetration by hosting fashion shows across the country along with an aggressive
advertising and PR campaign, which enabled it in persuading a potential customer to
its brand and its outlets to buy the Company’s apparels.

Phase II: Building a brand

The Company has established a distribution network across the country covering
Metro, A Class cities and B Class cities. Over the years, the Company introduced
other product categories like men’s trousers, socks, wallets and t-shirts, which
received an overwhelming response from its customers. Though the products
introduced by the Company were doing exceedingly well, the total retail area
available to the Company was not adequate and restricted it to a few Multi Brand
outlets and one exclusive store in Mumbai. However, in terms of sales, the Company
achieved sales of Rs.1, 400 Lacs (US $3 mn approx.) in the year 2000.

Phase III: Building of scope and scale for the brand

Although the sales continued to grow rapidly, expansion had still not reached its true
potential on account of the limited retail area. To meet the growing demand of its
products, the idea of having its exclusive stores was conceived and thirty-six Studio
Stores were planned to be opened in a time frame of about two years. To achieve
further growth in sales, bollywood actor Fardeen Khan was signed up as the brand
ambassador in July 2001. This gave impetus to the Company’s marketing initiatives
and endorsement by the brand ambassador reinforced the brand image as a trend-
setting brand. The Company expanded its product lines to include knitwear, woolens,
ties, scarves, handbags and other accessories. By December 2002, the Company had
already opened twelve Studio Stores all across the country. Simultaneously, the
Company also expanded its presence in large chain stores like Shopper’s Stop and
Piramyd all over India and was the first brand to be introduced in Westside, a leading
retail store.
The Company started its first manufacturing facility at Daman on April 7, 2003, with
an installed capacity of 2000 shirts per day. However, the company outsourced its
requirements for trousers and other accessories. The manufacturers and suppliers are
selected for supply to the Company only if they meet the Company’s quality
standards. The manufacturer has to undergo quality control inspections and tests
conducted by the Company before the trousers and accessories are branded as that of
the Company.50

Phase IV: Consolidation

With a view to expand its business and enter into the fabric processing business and
exports, the Company entered into a Memorandum of Understanding (“MOU”) dated
April 1, 2004 with Acme Global, a partnership concern, in which the existing
promoters (other than Mr. Akhil Chaturvedi and Mr. Nigam Patel) are partners The
understanding reached between the parties was formalized by executing an agreement
for assignment dated September 28, 2004.
� The company has taken over the business of Acme Global on a going concern
business together with all of its assets and liabilities as on April 1, 2004 for a
consideration of Rs. 2,84,14,814/-
� The said consideration is payable on or before March 31, 2005 or such extended
time as may be mutually agreeable.
� The said consideration is represented by promissory notes made by the Company
in favour of the four (4) partners of Acme Global and till such time that the said
consideration is paid; it shall be treated as unsecured loans in the books of the PIL.
� The Agreement is effective on and from April 1, 2004.

Acme Global
Acme Global was set up as a partnership firm on December 15, 1999 with Mr. Nikhil
Chaturvedi, Mr.Salil Chaturvedi, Mr.Deep Gupta and Mr. Rakesh Rawat as the
partners sharing profits in the ratio of 1:1:1:2. Acme Global was involved in the
business of export of textile, textile machinery and textile related chemicals, dyes, etc.

Brief Financials of Acme Global

The brief financials of Acme Global prior to its acquisition were as follows:
(Rs. In Lacs)
Year 2003-2004 2002-2003 2001-2002
Partners Capital 334.02 313.18 247.22
Fixed Assets 26.43 13.23 8.53
Total Income 2541.93 2667.01 1731.39
Net Profit after Tax 107.47 121.74 125.16

Benefits from Acquisition

The strategy behind acquiring the business of Acme Global was to consolidate the
business of the Company. Till now, the Company has been in the business of apparel
manufacturing, outsourcing, branding and distribution (through its own outlets,
national chain stores and multi brand outlets). With this acquisition, the Company
entered into the business of textile exports, export of textile machinery and textile
related chemicals.
The fabric export business provides the Company, the necessary economies of scale
and an understanding of the global textile market. It also helps the Company in
negotiating better rates for the raw materials required by the Company for its
manufacturing facility.

Milestones achieved by the Company:

Year Milestones
1997 � Acme Clothing Private Limited was incorporated on November 11,
1997
1998 � The Company launched its brand “Provogue”
1999 � John Abraham was projected as the brand ambassador for
Provogue.
� The Company introduced the brand “Provogue” in National Chain
Stores like Piramyd, Shopper’s Stop and Lifestyle
2000 � The Company opened the first “Provogue Studio” (an exclusive
brand outlet) in Lokhandwala, Andheri, Mumbai
2001 � The Company opened its second Studio Store in Chandigarh
� The Company signed bollywood actor Fardeen Khan as the Brand
Ambassador 51
2002 � The Company set up its factory at Daman to manufacture apparel.
2003 � The Company introduced the concept of “Provogue Lounge” at
High Street Phoenix, Mumbai
2004 � The Company acquired Acme Global which enabled it to enter into
fabric processing business
� The Company entered into a License Agreement with M/s. Rajni
Frames for the manufacture and sale of eye wear products under its
brand name
� The Company acquired 15,906 shares of Acme Hotels &
Hospitality Private Limited (“AHHPL”) pursuant to which AHHPL
became its subsidiary
2005 � The Company changed its name to Provogue (India) Limited

Awards and Recognitions:

The company has been consistently recognized as the most admired apparel
manufacturer in India. Images, one of the leading industry magazine, has instituted
various awards known as Images Fashion Awards (IFA) to recognize the best
performers of the fashion and retail industry. The company has been recognized by
the industry for its various initiatives, which include Brand building, Setting up of
own Exclusive Brand Retail chain and Fashion retailing concepts amongst others. The
company has a unique distinction of winning the ‘Most admired product launch’
award and also being nominated for the IFA Hall of Fame: ‘Most Admired Apparel
Company in India’ in the same year. A list of others awards won by the company over
the years is in the table below:

Year Award

2000 IFA: Winner ‘Most Admired Product Launch’ – Provogue

2000 IFA Hall of Fame: ‘Most Admired Apparel Company in India’- Acme
Clothing
2001 IFA: Hall of Fame ‘Most Popular Fashion Campaign of The Year’ -
Provogue
2001 IFA Hall of Fame ‘Most Admired Apparel Company in India’ – Acme
Clothing
2001 IFA Hall of Fame: ‘Most Admired Brand Professional of The Year’-
Nikhil Chaturvedi
2003 Lycra(R) IFA: Hall of Fame ‘Most Admired Fashion Campaign of The
Year’ – Provogue (for year 2002)
2003 Lycra(R) IFA Hall of Fame: ‘Most Admired Brand Professional of The
Year’- Akhil Chaturvedi (for year 2002)
2003 Lycra(R) IFA: Winner ‘Most Admired Exclusive Brand Retail Chain
Of The year’ – Provogue (for year 2002)
2004 Lycra(R) IFA: Winner ‘Fashion Retail Concept Of The Year’ –
Provogue Lounge (for year 2003)
2004 Lycra(R) IFA: Hall of Fame ‘Most Admired Shirt Brand of The Year’
- Provogue (for year 2003)
2004 Lycra(R) IFA: Hall of Fame ‘Most Recalled Fashion Campaign Of
The Year’ - Provogue (for year 2003)
2004 Lycra(R) IFA: Winner ‘Most Admired Exclusive Brand Retail Chain
Of The year’ – Provogue (for year 2003)
2004 IFA: Hall of Fame ‘Retailer Of The Year in Fashion’ - Provogue (for
year 2003-04)
2004 Golden Scale Award for the Menswear Brand in Apparel by CMAI
2004
2004 DFU’s inside Fashion brand award for excellence in retail performance
2005 Lycra(R) IFA Winner: ‘Most Admired Fashion Forward Brand of the
year’- Provogue
2005 Master Brand Award for Menswear Apparel

Main and Other Objects of the Company

The main objects of the Company as stated in the Memorandum of Association are:
1. To carry on business of manufacturers, producers, processors, purchasers, sellers,
distributors, importers, exporters and dealers in all kinds of readymade garments &
fabric, accessories & related items, shirting, suiting, trousers, jeans, textile goods,
hosiery goods, elastic cloth, elastic tapes, knitted cloth, made to measure garment,
tapestry, knit wear, ribbons, saree borders, woven labels, parachute strings, ties,
collars, cuffs, scarves cells, and tinsel 52 fabric and thread, underwear’s, brassiers,
dress materials and to carry on the business of hosiers, clothiers, dress makers,
costumers, dress agents, outfitters.

2. To carry on the business as manufacturer, processors, exporter, importer, indenter

and dealer in Yarn, Thread, Fabric, Made-ups, and Garments made from 100%
Cotton, Man made Filament & Staple Fibres, Wool, Silk. To carry on the business as
manufacturer, processor, exporter, importer, indenter & dealers in all types of Dyes &
Dye Intermediates, Pigments, Textile Axillaries and other articles, Colours, Basic
Inorganic & Organic Chemicals ,Detergents, Starch, Acids, Essential Oil, Paints and
varnishes, lakes, flush colours, surface active agents, compounds, ingredients, flavors
and perfume material & Miscellaneous Chemical Products for the foregoing and
products for us in connection therewith One of the objects of the Company as stated
in the Memorandum of Association, which the Company has activate by passing
necessary resolutions, is 1. To carry on the business of hotel, restaurants, café tavern,
beef house, refreshment rooms, and lodging house keepers, licensed victualisers,
purveyors caterers for public amusements, hairdressers, proprietors of clubs, baths,
dressing rooms, laundries, reading writing and newspaper rooms, libraries, ground
and places of amusements, recreation, sports, entertainment, and instruction of all
kinds.
The main objects clause of the Memorandum of Association enables the Company to
undertake the activities for which the funds are being raised for the issue and also the
activities, which the Company has been carrying on till date.
Contact Information

Provogue (India) Ltd. CMIE

database

Registered office

Address
105/106, Provogue House, 1st Floor,
Off. New Link Road, Andheri (West),
Street

Mumbai 400053
City Pincode

Maharashtra
State

Email address

www.provogue.net
Website

Telephone and fax

numbers

Country code 91
022-
30620000
Tel no.

30680570
Fax no.
 Vishal Retail Ltd.
Company History - Vishal Retail

Our Company was incorporated on July 23, 2001 under the Companies Act, 1956 as
Vishal Retail Private Limited. Our Company was converted to a public limited
company on February 20, 2006.At the time of incorporation, the registered office of
our Company was situated at 4, R. N. Mukherjee Road, Kolkata 700 001Subsequently
our registered office was shifted to 54/4C, Strand Road, Kolkata 700 006 on August
1, 2001 and on February 14 2004,our registered office was shifted to Mouza Kuch
Pukur, P.S. Bhangore,24 Paragnas (South), West Bengal. On December 29, 2005, our
registered office was shifted to RZ-A-95 & 96, Road No. 4, Street No. 9, Mahipalpur
Extension, New Delhi 110 037, which is the present registered office of our
Company.
Acquisition of Business from M/s Vishal Garments and M/s The Vishal Garments
Vide a business purchase agreement dated November 23, 2001 executed between our
Company and Mr. Ram Chandra Agarwal (carrying on proprietorship business in the
name of M/s The Vishal Garments) and Mrs. Uma Agarwal (carrying on
proprietorship business in the name of M/s Vishal Garments), we acquired the
business of M/s The Vishal Garments and M/s Vishal Garments, and the said
businesses were transferred to our Company as a going concern with effect from
December 15, 2001.
Acquisition of manufacturing unit from M/s Vishal Fashions Private Limited
Vide a business purchase agreement executed between our Company and M/s Vishal
Fashions Private Limited, we acquired the business of manufacturing of readymade
garments as a going concern with effect from March 31, 2003. Our Company went
into backward integration be acquiring a manufacturing unit for readymade garments.

Acquisition of manufacturing unit from M/s Vishal Apparels Vide a business

purchase agreement dated March 31, 2003 executed between our Company and Mr.
Ram Chandra Agarwal (HUF) (carrying on its business in proprietorship in the name
of M/s Vishal Apparels), we acquired the manufacturing unit of M/s Vishal Apparels
and the said manufacturing unit was transferred to our Company as a going concern
with effect from March 31, 2003.
Major Events:

A chronology of some key events in the history of the Company is set forth below:

Year Milestone

2001 * Incorporated as Vishal Retail Private Limited

* Acquired the proprietorship firm Vishal Garments & The Vishal
Garments
* Opened first store outside Kolkata
2002 * Opened first Store in Delhi
2003 * Acquired Vishal Apparels, a manufacturing unit.
* Set up a manufacturing unit in Gurgaon
2004 * Started our largest store of at Mathura Road, New Delhi having an
area of 80,000 square feet
* Nominated for the Images Retail Awards' 2004
2006 * Our Company was converted into a public limited company
* Implementation of production and retail module of SAP
* Broadband connectivity with each and every location
* Increased our presence to an aggregate of 17 States

INDUSTRY EVALUATION

Indian Retail Industry is ranked among the ten largest retail markets in the world. The
attitudinal shift of the Indian consumer in terms of "Choice Preference", "Value for
Money" and the emergence of organised retail formats have transformed the face of
Retailing in India. As per CRIS INFAC Report, 2005, the Indian retail industry is
currently estimated to be a US$ 200 billion industry and organised Retailing
comprises of 3 per cent (or) US$6.4 Billion of the retail industry. With a growth over
20 percent per annum over the last 5 years, organised retailing is projected to reach
US$ 30 Billion by 2010.

Retailing in India is gradually inching its way to becoming the next boom industry.
The whole concept of shopping has altered in terms of format and consumer buying
behaviour, ushering in a revolution in shopping. Modern retail has entered India as
seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer
shopping, entertainment and food all under one roof.

Retail is India's largest industry, accounting for over 10 percent of the country's GDP
and around 8 percent of employment. Retail in India is at the crossroads. It has
emerged as one of the most dynamic and fast paced industries with several players
entering the market.

The Indian retailing sector is at an inflexion point where the growth of organised retail
and growth in the consumption by Indians is going to adopt a higher growth
trajectory. The Indian population is witnessing a significant change in its
demographics. A large young working population with median age of 24 years,
nuclear families in urban areas, along with increasing working-women population and
emerging opportunities in the services sector are going to be the key growth drivers of
the organised retail sector.

Organised retail in India is on a high growth trajectory and is growing at the rate of
24-26% annually. The size of the total retail industry market is estimated to be around
Rs. 9,990 billion in 2004-05, with organised retailing accounting for a mere 3.5% of
the India's total retail market. In its Annual Review, CRIS INFAC,2005 estimated the
organised retail penetration to increase to 8% by 2010 at a CAGR of 26%. The
organised retail penetration is projected to increase to 5.8% by 2007-08.

Organised Retail Penetration

Rs. Billion Units 2004-05 E 2005-06 P 2006-07P 2007-08 P

Total Retail Industry Rs. billion 9990 10659 11374 12136

Growth Rate Per Cent 6.7 6.7 6.7 6.7
Organised Rs. Billion 350 441 556 700
Penetration Per Cent 3.5 4.1 4.9 5.8
Organised Retail
Y-O-Y growth Per Cent 24 26 26 26

E-Estimated, P-Projected Source: CRIS INFAC, 2005

DRIVERS FOR GROWTH IN RETAILING

Higher Disposable Income

The disposable income of Indian consumers has increased steadily. The proportion of
the major consuming class (population that has an annual income that is higher than
Rs. 90,000) is expected to grow at a CAGR of 9.3 per cent (2002-2010) over the next
8 years and will result in higher spending capacity and eventually into greater
consumption

Higher level of working women

According to the 2001 census report, the population of working women has increased
from 22 per cent in 1991 to 26 per cent in 2001. The purchasing habit of a working
woman is different from that of a housewife, since the former has lesser time to
devote to the task. Working women would prefer a one-stop shop for purchasing their
regular products. Also, a working woman's propensity for spending is higher than that
of a housewife
Increase in nuclear families
In the recent past, nuclear families as a percentage of the total household population
have increased. Average household sizes have decreased from 5.57 in 1991 to 5.36 in
2001. Per capita consumption increases in the case of a nuclear family. The rise in the
number of nuclear families will, thus, drive consumption and boost the retail industry.
Baby boomer effect

There has been a strong demographic shift in India's population distribution. The
percentage of the earning population (15 to 60 yrs) in the total population is rising.
This will increase the overall purchasing capacity in the country, propelling growth in
the retail segment.

Higher growth in urban population

At present, organised retailing is focused in metros and is expected to expand to Tier-

II and Tier-III cities. For the next 10 years, growth in organised retailing is expected
to take place in urban areas. Thus, the target market for organised retail players is the
urban population.

Urbanisation has increased at a rate of 2.7 per cent over the last 10 years (1990-2000)
and is expected to increase at 2.4 per cent from 2000 to 2015. In 2015, the population
in urban areas is expected to touch 401 million, accounting for about 32.2 per cent of
the total population

HIGHER INCOME LEVELS IN URBAN POPULATION

Greater growth in the numbers of the urban middle class and strong growth in income
levels augurs well for the growth of organised retailing, as we believe that in the
medium term organised retailing will be restricted to the urban areas of India.

The proportion in total population of the segment with an annual income higher than
Rs 90,000 (that is, the major consuming class) has increased from 20.4 per cent in
1995-96 to 28.1 per cent in 2001-02. However, the share of the major consuming
class in the urban region has increased at a higher rate, from 45 per cent in 1998-99 to
51 per cent in 2001-02, and it is expected to touch 63 per cent by 2009-10. Further,
the income levels of the urban middle class are also expected to register a strong
growth in the medium term.

Change in outlook on branded products and Growth in the number off retail
malls

In the last 4-5 years, Indian markets have witnessed a strong shift towards branded
products as Indian consumers have started feeling that branded goods offer better
quality and greater value for money. This increase in the awareness of branded goods
has been the highest in the case of apparel. Increased exposure to international
consumerism trends and fast changing lifestyles can result in a.10-15 per cent growth
in branded goods, which will, in turn, provide a platform for the growth of organised
retail.

The last 2-3 years have also witnessed a proliferation in malls in India, particularly in
the metros and mini metros. The growth in retail malls provides more options for
retailers, as it reduces the time required to set up a retail outlet. It also provides retail
space, which can be leased by retailers instead of investing in building up their own
store. This significantly reduces the capital intensity of the retail industry. Typically, a
retail chain would prefer to lease store space in a mall instead of setting up a stand
alone store, since this reduces capital investment, which can be employed in their core
business of retailing. Increased use off credit cards and availability off cheap finance

The use of plastic money (credit and debit cards) has increased significantly in the last
4-5 years. In fact the ease of payments (ability to spend without cash) due to the use
of credit and debit cards, has also led to an increase in total spending on shopping and
eating out.

With the acceptance of and the increase in the number of electronic data converter
machines installed in retailing outlets, we believe credit and debit cards will provide
further fillip to organised retail.

Segments in Retail

Retail as a whole can be broken into various categories, depending on the types of
products serviced. Food and groceries has the biggest share in the retail pie,
accounting for the around 76%. However, it has the lowest organised retail
penetration. This is indicative of the opportunity for organised retail growth in this
segment. The footwear and clothing segments have the highest penetration of
organised retail.

Total Retail Organised Retail

Category Market size Market Share Market size Market Share
Penetration
(Rs, billion) (per sent) (Rs, billion) (per sent) (per sent)

Food beverage and tobacco 7.738 75.8 65 19 1

Clothing and textile 716 7 141 40 20
Consumer durables 416 4.1 43 13 10
Jewelleries 416 4.1 25 7 6
Home decor and furnishing 300 2.9 25 7 8
Beauty care products 214 2.1 7 2 3
Footwear 104 1 32 9 31
Books, music and gifts 87 0.8 11 3 13
Total 9,990 100 349

Home decor and food and grocery are emerging as the fastest-growing segments. The
proliferation of hyper markets and supermarkets has led to a growth in food and
grocery retail; thus, value retailing is seen to be gaining ground in India. The other
high growth verticals are apparel and durables. Impulse goods like books and music
are also gaining a larger share in the organised retail market, with players making
stores more accessible to consumers.

(Rs. in billion) 2005 2002 CAGR (per cent)

Clothing, textile and

fashion accessories 141 50 41.3
Footwear 32 20 17.0
Jewelleries and watches 25 25 0.0
Food and grocery 65 20 48.1
Durables 43 15 42.1
Books, music and gifts 11 5 30.1
Home decor 25 5 71.0
Beauty care products 7 n.a.

Source: CRIS INFAC Annual Review, 2005

BUSINESS EVALUATION

We are a leading player in the Indian Retail Industry focused on value retailing in Tier
II and Tier III cities of the country. Our business is modeled on the on the concept of
value for money' retailing and has established a strong customer connect with the
middle and lower middle income consumer groups. Our Key strategy is to offer
quality products, at the minimum possible cost, with a focus on private label and
quassi private label products an fashion at affordable price.

We started as a retailer of ready-made apparels in Kolkata in 2001. In 2003, we

acquired the manufacturing facilities from Vishal Fashions Private Limited and M/s
Vishal Apparels. Subsequently, with evolution of retail industry in India and change
in consumer aspirations, we diversified our portfolio of offerings to include other
retail goods. Currently, we sell ready-made apparels and a wide range of household
merchandise and other consumer goods such as footwear, toys, watches, toiletries,
grocery items, sports items, crockery, gift and novelties.

In order to reduce costs and take advantage of economies of scale we have embarked
on backward integration of our products. Our apparel manufacturing plant is located
at Gurgaon, Haryana. For ensuring efficiency in supply chain, we have set up seven
regional distribution centres located around Kolkata (West Bengal), Thane
(Maharashtra), Jaipur (Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab),
Gurgaon (Haryana) and Delhi. Further, we have focussed on developing a cost and
time efficient distribution and logistics network, which currently comprises seven
distribution centers and a fleet of trucks for transportation.

We achieved total sales of Rs. 6,026.53 million for fiscal 2007, as opposed to a
turnover of Rs. 2,884.43 million for fiscal 2006 and Rs. 1,463.12 million for fiscal
2005. During the same period our profit after tax was Rs. 249.83 million, Rs. 124.74
million and Rs. 30.20 million, respectively. As a result, our sales increased between
fiscal 2004 and fiscal 2007 at a CAGR of 89.83% and our profit after tax increased
between fiscal 2004 and fiscal 2007 at a CAGR of 302.89%.

Segment Wise Performance

Category Fiscal 2007 Fiscal 2006 % growth

Apparel 3,800,968,337 2,043,676,792 85.98%
FMCG 905,884,507 257,489,344 251.32%
Non Apparel 1,314,429,767 580,538,128 124.41%
Grand Total 6,021,282,611 2,882,064,264 108.92%

OUR COMPETITIVE STRENTHS

We believe that the following are our principal competitive strengths which have
contributed to our current position in the retail sector in India:

Understanding off the 'value retail' segment

Our business plan involves implementation of the concept of the 'value retailing',
targeting the middle and lower middle income groups, which constitute majority of
the population in India. We intend to provide quality products at competitive prices.
Our emphasis has been to maximise the value that the customers derive in spending
on goods bought in our stores. We endeavour to continuously reduce our costs
through a variety of measures, such as, in-house production of apparels, procurement
of goods directly from the small and medium size vendors and manufacturers,
efficient logistics and systems along with customized product mix at our stores
depending on the regional customer behaviour and preferences. Central to our value
retail strategy is to pass on the benefits of cost reduction measures to our customers.

Supply chain management

Our supply chain management involves planning, merchandizing sourcing,

standardization, vendor management, production, logistics, quality control, 'pilferage'
control replacement and replenishment. Our supply chain management provides us
flexibility to adapt to changing patterns in consumer behaviour and our ability to add
value at various steps/levels. In particular, our supply chain management gains
strength from our ability to undertake in-house manufacture, design and development
of apparels.

Logistics and distribution network

Our distribution and logistics network comprises seven distribution centres. Besides,
we have our own fleet of 41 trucks, which helps us to transport and deliver our
products in a cost and time efficient manner. We believe that our distribution and
logistics set up is well networked and allows us to fulfil the store requisition within
short time period of generation and receipt of order, which has helped us to optimize
in store availability of merchandise and minimize transportation costs. Our strong
distribution and logistics network has enabled us to dispense with the requirement of a
dedicated storage space at every store, which is an industry practice, and instead
undertake periodical replenishment of depleted stock. Due to adoption of an efficient
racking system, we are able to benefit from optimum utilization of the space allocated
for display in our stores. This provides us assistance in maintaining a low working
capital requirement and less carrying cost.
Geographical spread

Our stores and distribution centers are spread in various parts and regions of the
country. This has not only enabled us to build our brand value but also facilitated us
to explore cost-effective sourcing from different locations, identify potential markets
and efficiently establish new stores in different locations. An aggregate of 45 of 53 of
our existing stores are located in Tier II and Tier III cities, which, we believe, enables
us to capture market share in locations where a majority of our target customers are
located.

Identifying new locations

We believe that we possess the ability to identify locations with potential for growth,
in particular in Tier II and Tier III cities. We have an exclusive site identification and
assessment team, which undertakes systematic analysis of the business prospects,
taking into account factors such as population, literacy levels,nature of occupation,
income levels, accessibility, basic infrastructure and establishment and running costs.
Further, we have a dedicated warehouse for the purposes of storing the materials
essential for setting up of new stores.

Information technology systems

We are constantly upgrading our technology and has invested around Rs. 50 mn in the
implementation of SAP in the organisation. This package, implemented by Tata
Consultancy Services is capable of supporting 1,000 users, thus providing enough
scope to scale up our operations. To further ensure the profitability and sustained
growth, the company is in the process of revamping its current IT set up to implement
more advanced applications and integrate all its business process right from planning
to implementation and material management, to finance.

The stores and warehouses facilities are linked through a company vide Virtual
Network Connection together with hotlines to ensure online connectivity. All of our
stores are linked with broadband technology for online and video conferencing
connectivity to ensure proper centralized and control over stores and monitoring of
inventory, ensuring a pilferage level of less than 1.5%.

Sales promotion and Customer Service

Our Category management team planes promotional schemes on a weekly basis.

Apart from general sales promotion, the category management team formulates
promotional plans for 'slow movers'. In addition, to promote sales, the company
focuses on the layout of its stores and positioning, presentation and display of
merchandise, in order to appeal to the customers. Under arrangements and
merchandise manufactures, we also receive payment on account of display of their
products.

Focus on private labels

Our objective has always been to offer quality products at the minimum possible cost.
Thus, the company strives to offer differentiated products that are not available
elsewhere at very competitive prices, by either manufacturing them in house or
directly sourcing them from manufacturers. Our Core strength lies in garment
manufacturing and the ability to understand the apparel business, which has translated
into an active and strong Private label offering. Further, in house manufacturing
(private labels) contributed 9.68% of our total sales in fiscal 2007 aggregating Rs.
583.58 million.

Experienced and skilled management team

We have an experienced management team which is complemented by a committed

workforce. Our management team comprises of talented professionals who are skilled
in the retail sector. This has assisted us in management of our stores. We believe we
have created the right balance of performance bonuses and other incentives for our
employees.

CONCERNS

Execution Risks
Although the Industry growth potentially appears to be immense and we are having a
tract record of capturing such opportunities, we have to steadily keep up with the pace
of Industry growth. We face two type of Execution Risk
* The pace of New Stores Roll out

* Managing the profitability of these stores

Retaining existing talent and acquiring new talent will present a huge challenge

The Organised Retail Industry is expected to reach US$ 30bn by 2010, for which it
will be requiring 0.5mn of people. With the entry of new big players into the market,
such as Wal-Mart, Reliance and the huge expansion of existing big Retailers, we
would be witnessing a huge amount of poaching leading to an increase in employee
cost thereby impacting margins.

Concentrated Geographical Presence

Currently, we are having strong presence in central and northern India, wherein we
derive 61.93% of our revenues. Further all our manufacturing and warehousing
facilities are located in this region. Our Aggressive plans for the next two years in
other regions of the country may pose a concern in terms of the company's execution
skills and logistic set up.

Increase in competition to impact Margins

Considering the industry's huge growth potential, new players, both domestic and
international, are likely to enter the market. Groups such as Reliance Industries,
Bharti etc., and foreign players like Wal Mart, Tesco, Carrefour and Metro have
already expressed their keenness to operate in India. Increased Competitive pressure
is likely to alter the dynamics of business quite dramatically, further staining land and
manpower resources. Further, the advent of competition may also dent the high level
of profitability enjoyed by us.
Retail Landscape

According to Images 2006, organised retail is set to grow at a 35% CAGR over the
next few years and will reach US 30bn by 2010. However, in order to reach this
target, several initiatives and huge investments would be required on the part of
retailers. We estimate that Retail Industry would be requiring 145-060 mn sq.ft. of
space to reach this target. Further, in view of large expansion plans of Pantaloon,
Reliance and Wal Mart making a foray into Indian Retail Industry with Bharti,
prominent land space would be a big threat to the industry.

FUTURE OUTLOOK

Today, our country is in grip of retail revolution with big retailers like Wal-Mart
eager to take over Indian markets. Even within our country, big business houses like
TATA, Reliance, Bharti have already made there foray into the retail market, At this
time of blood thirsty competition we aspire to distinguish our selves in the retail
industry by the competitive strengths we offer. Our concept of 'value retailing' i.e.
targeting on the needs of the middle and lower income group has been our foremost
strength which has enabled us cling the focus of the market. Our prime concern has
been to establish our base structure in Tier II and Tier III cities and to serve to their
needs at the best. Our continuous aim is to evolve ourselves to meet the demands of
the highly dynamic society. To accomplish this goal we have been introducing private
labels, identifying new and globally distributed locations to set up new show rooms
and hire experienced and skilled management team.

We have aggressive Roll out plans for the future. We would be opening stores under
the new Retail Formats such as Convenient Stores, Speciality Stores to cater to the
demand of existing and forthcoming stores, which will contribute significantly to our
revenues and our customer base.

We are targeting to achieve a turnover of Rs. 5,000/- (Rupees five thousand only)
Crores by the financial year ending March 2010 and become the leading Retailers in
India. For this, we are planning to enter into tie ups with branded manufacturers,
suppliers, service providers for diversifying our operations and unleashing more
opportunities for the growth of our business and providing our stakeholders, the value
for their money.

OPPORTUNITIES
Presence in Tier II and Tier III cities

We are operating 45 Stores out of 53 Stores in India in the Tier II and Tier III cities.
We are having strong presence in these cities. Big players have not ventured into
these cities. In Future, we would be operating more stores in such cities and aid in the
development of the organised Retail Industry in such cities
New Retail Format

We are in the process of launching Convenient Stores and Speciality Stores all over
India, by which we would be able to reach every consumer and also gain a wide
spread geographical presence all over the India. These stores would be spread in the
area of approximate 5,000-10,000 Sq. Ft. We have already identified some of the
suitable locations for the same and have entered into Memorandum of Understanding
with some of the owners for running these stores from their premises.

Booming Industry Scenario

The Retail Industry, which was a few time back at the nascent stage, is progressively
moving forward to become the biggest industry contributing a large chunk of
resources in the development of economy. The Industry is having a CAGR of 25%,
which is supposed to increase further. We, being one of the major Retailers in the
Industry, will be garnering a strong share in the Retail Industry growth and providing
value for money to our stakeholders.

Private Labels

Our objective has always been to offer quality products at the minimum possible
costs. Thus, we strives to offer differentiated products that are not available elsewhere
at very competitive prices, by either manufacturing them in house or directly sourcing
them from manufacturers. We have a number of in house brands which are
contributing significantly to our total revenues.

We would be launching more products under our private labels, which will pave the
way for our margins and create a strong value for our stakeholders.

De risking our Business Model

We are working on de-risking our business model. While keeping our products range
wide, we have ensured a balanced mix of in house manufactured products (private
labels) and products sourced from manufactureres (quasi private labels) to optimize
margins and minimize risks.

Currently, apparels contribute a significant portion to our revenues. In order to reduce

our dependence on the apparels business and de-risk our business from the seasonality
of apparel retailing, we are focusing more on non-apparels and FMCG retailing. This
segment would be contributing significantly to our revenues in future, thereby
minimizing the risk.

HUMAN RESOURCES

Our human resource policies are aimed towards creating a skilled and motivated
workforce. We have 6,801 employees both employed in our stores as well as in our
manufacturing unit and other facilities, on April 30, 2007.

The following tables provide a classification of our employees on the basis of their
age and education.
Age No. of Employees

18-24 3,793
25-35 2,178
35 and above 830

Total 6,801

Education No. of Employees

Under Graduates 4,060

Graduates 2,498
Post Graduates 243
Total 6,801
Compensation and Performance
Based Incentives

Our compensation policy is performance based and we believe it is competitive with

industry standards in India. We endeavour to recognise talent and potential in our
employees and encourage them to take additional responsibilities. Based on
performance, we calibrate our employees and reward loyalty by preferring in-house
promotions.

Training

Our Key focus has been to change the mindset from 'human resource utilization' to
'nurturing and leveraging talent'. We believe in investing in people competencies for
the business requirements of tomorrow. In essence, we wish to train our employees to
become next generation entrepreneurs, who can effectively lead the growth of our
business.

We have created a favourable work environment that encourages innovation and

meritocracy. We are in the process of putting up a scalable recruitment and human
resource management process, which will enable us to attract and retain high caliber
employees & meet the challenges of the Retail Industry.

Internal Control System and their adequacy

The company has installed adequate internal control systems and procedures
commensurate with the size and nature of the business. The Company has
implemented SAP to ensure that proper checks and balances are in place to ensure the
functioning of Internal Control Systems. The discrepancies pointed out by our Internal
Control System are taken care of and proper actions are taken on the same, after
taking approval of the Audit Committee on the same

Comparison of Fiscal year 2007 and Fiscal year 2006

Some of the significant events that took place during the Fiscal year 2007 were as
follows:
1. 27 new stores were opened, aggregating to an area of 770,890 square feet. Our
store at Hyderabad has been shifted to another location at the same place with a
higher area and also we have closed our operations at Siliguri First store and have
opened another store "Siliguri Second" with a higher area. Our stores located at
Meerut, Agra were closed due to fire in such store.

2. We have made preferential allotment of 1,450,000 Equity Shares in month of June

and July 2006 at an issue price of Rs. 200 per Equity Share.

3. During Fiscal year 2007 we have tested and partly implemented SAP ERP package
for management information system. During the transition face from old information
package to new ERP system, we faced operational difficulties in terms of delayed and
improper receipt of operational data particularly of sales. This has even led to over
stocking of the materials to overcome the replenishment requirements of the
company.

Profit after Tax

Net profit increased by 102.36% to Rs. 250.67 mn in Fiscal year 2007 from Rs.
123.87 mn in Fiscal year 2006-07. The increase was mainly on account of increase in
sales due to opening of new stores, change in sales mix with an increase sales mix of
non apparel goods with better net margins and FMCG products.

Other Income

Other income earned in Fiscal year 2007 was Rs. 23.90 million in comparison to Rs.
6.46 million in Fiscal year 2006, an increase of 254.80%. This increase was mainly on
account of increase in display charges on, account of FMCG goods, receipt of
commission on account of issuance of credit card under the co-branded card
agreement with SBI Cards & Payment Services Private Limited

Capital Employed

* The total capital employed in the business increased by Rs. 242,208,720/- in 2006-
07. This is reflected in the liabilities side of the balance sheet of the company through
an increase in borrowing by Rs. 1,881,592,013/- and an increase in share capital by
Rs. 540,616,707/-.

Capital Structure

* The Company has authorised equity share capital of Rs. 25.00 Crores comprising
2.50 Crores equity shares of Rs. 10/- each and authorised preference share capital of
Rs. 5.84 Crores divided into 4.00 Lacs preference shares of Rs.146/- each.

* The paid up equity share capital of the Company increased from Rs.164,906,050 in
financial year 2005-06 to 183,247,950/- in 2006-07. Further 3,84,190 Preference
Shares of Rs. 146/- were converted in to equity shares at a price of Rs. 146/- each
during the year under review. The company has issued and allotted 12,50,000 equity
shares of Rs. 10/- each at a premium of Rs. 190/- each to 49 investors on July 02,
2006 and further 2,00,000 equity shares of Rs.10/- each were allotted to H D F C Ltd.
at a premium of 190/-each

Loan Profile
Loans increased from Rs. 550,480,922/- to Rs. 2,432,072,935/- during the financial
year 2006-07. The secured loans increased from Rs. 476,105,922/- in 2005-06 to Rs.
2,162,954,208/- in the financial year 2006-07. The unsecured loans increased from
Rs. 74,375,000/- in 2005-06 to Rs. 269,118,727/- in 2006-07 the secured loan is
primarily on account of working capital facility and cash credit limit to finance the
operations and to maintain the liquidity of the company

The total Debt equity ratio stood at 1.71 : 1 in 2006-07 as compared to 0.76 : 1 in
2005-06. The debt is primarily consists of working capital facility and cash credit
limit

Capital Expenditure

During 2006-07, the Company incurred Capital expenditure of Rs. 885,786,143/-

(inclusive of addition to WIP). The capital expenditure incurred during the year is
primarily on account of adding up new stores to the Company's Portfolio of Stores
and renovating existing stores.

Intra Group Transaction

There were no Intra group transactions during the financial year 2006-07

Gross Block Size and Nature of Assets

* The Company's gross block of assets increased from Rs. 459,934,501/- in the
financial year 2005-06 to Rs. 1,329,272,543/- exclusive of Capital work in progress.
The Capital Work in progress decreased from Rs. 46,404,301/- in the financial year
2005-06 to Rs. 10,877,703/- in the financial year 2006-07.

The ratio of sales to gross block has declined from 6.24 in 2005-06 to 4.53 in 2006-07
Depreciation

The Company provided for depreciation of Rs.152,928,667/- in the financial year

2006-07 as compared to Rs. 53,612,792/- in the financial year 2005-06. The
accumulated depreciation of the company comprised 19.38% of its gross assets. The
Company uses Written down Value Method for computing depreciation on the
company's assets.

Staff Costs

Staff costs increased in Fiscal year 2007 to Rs. 274.08 million as compared to Rs.
135.44 million in Fiscal year 2006. The increase in employee cost is mainly on
account of recruitment of employees for new stores opened during fiscal year 2007
and administrative staff in the head office. As a percentage of total sales, it decreased
from 4.70% in Fiscal year 2006 to 4.55 % in Fiscal year 2007.

Manufacturing and Administrative Expenses

Manufacturing and administrative expenses increased in Fiscal year 2007 to Rs.

301.94 million as compared to Rs. 179.90 million in Fiscal year 2006. As a
percentage of total sales, it decreased from 6.24% in Fiscal 2006 to 5.01 % in Fiscal
year 2007. This is mainly due to decrease in overall fabrication and other
manufacturing expenses from 4.44% (as percentage of sales) in fiscal year 2006 to
3.39% (as percentage of sales) in fiscal year 2007.

Interest Outflow

Interest and finance charge has increased from Rs. 29,115,275/- in the Fiscal year
2006 to Rs. 147,536,359/- in the Fiscal year 2007. The increase is due to loans taken
from the banks/Financial Institutions for financing the future expansion plans of the
Company.

Foreign exchange earnings and outgo:

* There were no foreign exchange earnings during the last year under review.

* The Company has incurred foreign outgo Rs. 36,58,25,813/- (Rupees Thirty Six
Crores fifty Eight Lacs Twenty five thousand and Eight hundred Thirteen only) in the
Fiscal year 2007, which was primarily on account of capital goods and purchase of
goods

Earning per Share

* During Fiscal year 2007, Basic Earning per Share (EPS) was Rs. 13.97 as
compared to Rs. 7.92 in Fiscal year 2006.

* The diluted earning per share (DPS) during Fiscal year 2007 was Rs. 13.97 as
compared to Rs. 7.83 in Fiscal year 2006.
Contact Information
Vishal Retail Ltd.
CMIE
database

Registered office

Address
RZ-A95 & 96, Road No. 4, Street No.
9, Mahipalpur Ext.,
Street
New Delhi 110037

City Pincode
Delhi
State

Email address

www.vishalmegamart.net
Website

Telephone and fax

numbers

Country code 91
011-
30622002
Tel no.

011-30622008
Fax no.
Koutons industry

Overview
We are an integrated apparel manufacturing and retail company in India. We are in
the business of designing, manufacturing and retailing apparel under the “Koutons”
and “Charlie Outlaw” brands through a network of 999 exclusive brand outlets (as of
August 20, 2007) across India. We started our business with the formation of a
partnership firm “M/s. Charlie Creations”. We established a manufacturing unit
(having a capacity to manufacture approximately 20,000 pieces of apparel per annum)
in Delhi in 1993. In 1994, our Promoters with the vision of broadening operations
incorporated our Company, as a private limited company i.e. “Charlie Creations
Private Limited”. Our Company started its operations by taking over the business of
the erstwhile partnership firm.
As of August 20, 2007 we had 18 in-house manufacturing/finishing units and 14
warehouses which are spread across various locations in and around Gurgaon,
Haryana. We have increased our annual finishing and manufacturing capacity from
3,000,000 and 600,000 pieces of apparel, respectively as of March 31, 2005 to
22,920,000 and 12,360,000 pieces of apparel, respectively as of March 31, 2007. We
have also entered into fabricating agreements with various manufacturing units to
which we outsource stitching of certain apparel. Our manufacturing and finishing
facilities are backed by adequate facilities for product testing, apparel development,
design studio and sampling infrastructure to ensure high quality apparel for our
customers.

Our brand “Koutons” has contributed to the success of our business. Sales from our
brand “Koutons” has increased from Rs. 516.32 million in fiscal 2005 to Rs. 3,726.91
million in fiscal 2007 and has contributed 99.11% and 92.34% of our total income in
fiscal 2006 and 2007, respectively. We have positioned the “Koutons” brand in the
middle to high fashion segment, offering a complete range of a man’s wardrobe (in
the age group of 22 to 45 years) ranging from formal to casual and party wear. We
have recently reinvented and re-launched our old premier brand “Charlie” as
“Charlie
Outlaw”. The “Charlie Outlaw” brand is a casual brand targeted at fashion conscious
youngsters in the age group of 14 to 25 years and is positioned as a fashionable and
contemporary, value for money brand.

We marketed our apparel through a network of distributors spread all over India till
fiscal 2002. However, in fiscal 2002 with a view to improve marketing efficiencies,
we introduced the model of retailing on a consignment basis through exclusive
franchisee stores. Our first exclusive store was launched in 2002. As of August 20,
2007, 2007, the “Koutons” brand was sold on a total floor area of approx. 482,966 sq.
ft. and our “Charlie Outlaw” brand was sold on a total floor area of approx. 360,738
sq. ft. Our restated total income and restated profit after taxes for the years ended
March 31, 2003, 2004, 2005, 2006 and 2007 are summarized below:(In Rs. Million)
Year ended Year ended Year ended Year ended Year ended
March 31, March 31, March 31, March 31, March 31,
2003 2004 2005 2006 2007
Total 223.18 317.53 581.46 1, 583.85 4, 036.17
Income
Profit 4.32 8.82 19.29 131.98 344.87
after tax

Competitive Strengths

We believe that we are well positioned to capture the growth opportunities in India’s
apparel manufacturing and retail sectors, because of our following key strengths:

Exclusive Brand Outlets.

The majority of the apparel manufacturers cum retailers in India operate through a
combination of retailing through exclusive outlets, national chain stores and multi
brand outlets. This entails supplies being managed directly and through distribution
agents. We operate on a model of marketing our apparel directly
through a chain of exclusive brand outlets and thus are independent of external
marketing pressures attributable to the national chain stores, multi brand outlets and
other intermediaries. This enables us to focus our strategies and efforts towards
quality maintenance and customer satisfaction without the interference of any external
agency. This model also enhances the brand equity and recall value of our brands
“Koutons” and “Charlie Outlaw” and also allows us to undertake line extensions, as
the shelf space on each of the exclusive brand outlets is controlled by us.

Wide network of Exclusive Brand Outlets.

We have an extensive network of exclusive brand outlets for our brands “Koutons”
and “Charlie Outlaw”, which are spread across the metros, tier I and tier II towns of
India. As of August 20,2007, the “Koutons” brand was sold through 566 exclusive
brand outlets and the “Charlie Outlaw” brand was sold through 433 exclusive brand
outlets. For our “Koutons” brand, we have an established network in north/north
western India and are in the process of expanding our network in western and eastern
India. We have also opened our exclusive brand outlets in southern India and are
working towards expanding our presence there. We have executed letters of
intent/MoU’s with a number of developers to book various locations where we plan to
open our exclusive brand outlets. The wide coverage of our exclusive brand outlets
from metros to tier II towns and through the various regions in India, allows us the
flexibility to hedge against fashion changes given the general time lag in fashion
trends between metro and tier II towns.

Integrated player with low-cost sourcing capabilities.

We are an integrated apparel manufacturing and retail company with capabilities

across the entire value chain of manufacturing and retailing. One of our major
strengths includes our in-house finishing facilities and rigid quality controls. We
source our raw materials through intermediaries (who procure raw materials from
various markets). We also employ extensive logistics and supply chain management
systems to maintain maximum flexibility, which enables us to meet our needs in an
efficient manner without relying on any one vendor, factory or country. By virtue of a
centralized purchasing system, we have also achieved standardization in quality
control systems which enables us to be consistent in the quality of our apparel that we
manufacture and market. Our sourcing team closely monitors our suppliers and
provides strict quality assurance analysis that allows us to consistently maintain the
quality of our apparel for our customers. Because of our sourcing expertise,
capabilities and relationships, we believe that we are well positioned to take
advantage of the dynamics of the apparel manufacturing and retail sectors in India.

Unique brand positioning.

We position ourselves as a ‘High Fashion Value for Money’ brand. Our “Koutons”
brand is positioned in the middle to high fashion segment, offering a complete range
of man’s wardrobe (in the age group of 22
to 45 years) ranging from formal to casual and party wear. Our “Charlie Outlaw”
brand is a casual brand targeted at fashion conscious youngsters in the age group of
14 to 25 years. We believe in providing our customers value for their money and
position our apparel at a reasonable price with a focus on volume sales. We believe
that fashion and style statements are not restricted to high income segment and there
is an untapped market in the middle income segment which is both brand conscious
and aspirational in nature. We believe that this segment will be one of the fastest
growing segments in the Indian apparel industry, having an increasing level of
disposable income.

Design and merchandising expertise, with a pulse on fashion.

We have a team of designers and merchandisers who are supported by a staff of 40

professionals, including assistant designers and technical designers. We have
specialized design teams for each of our apparel categories, ensuring that each of our
design teams has specialized skill sets. We design our apparel range keeping in mind
our target customers as well as the latest fashion trends across the world in terms of
fashion, fabric, wearability, stitch, embellishments and also pricing. Our in-house
design staff designs our apparel. Our marketing and merchandising teams keep
themselves abreast of the various fashion developments and mixes it with the
creativity of professionally qualified designers working for us to create a distinct
style statement at affordable prices.

Experienced and efficient management.

Our Company is managed by a team of experienced and professional managers,
exclusively focused on different aspects of the apparel industry such as design,
merchandising, manufacturing, sourcing, marketing, quality control, logistics and
finance. Our promoters and management have substantial experience in apparel
sector. We also have a second layer of key executives who are capable of creating
and facing the challenges of growth within our Company and our sector. Some of the
key growth drivers in our business include the, identification of optimal locations for
our exclusive brand outlets and managing logistics. The proactive and aggressive
approach of our management team towards the above core factors has led to the
growth of our Company from 74 exclusive brand outlets (as of March 31, 2005) to
566 exclusive brand outlets of “Koutons” and 433 exclusive brand outlets of “Charlie
Outlaw” (as of August 20, 2007).
Wide apparel range.
We have a wide apparel portfolio which ranges from shirts, non denim trousers,
denims, suits,blazers, T- shirts, cargos, capris, sweaters etc. We manufacture and
retail a complete range of men’s apparel through our exclusive brand outlets and are
in the process of launching a range of apparel for women and children. We have in
fiscal 2005, launched ultra light weight fabric and thereafter in fiscal 2006 we added
compact cotton to our existing range of apparel portfolio. Our wide apparel portfolio
allows us to cater to the diverse demands of our customers and also allows us to
consolidate and establish our presence across diverse regions.

IT Infrastructure.
We use a state of the art information flow system to maintain records relating to sales
and inventory and integrate key work flows. We are currently maintaining our sale,
records and store inventories on specially developed computer applications. These
softwares enable us to maintain mirror images of the data base at our head office and
our stores across various locations. All daily transactions at either end are updated
through pooling of incremental data of new transactions. This helps us to maintain
complete control from the head office over all the stocks and sales on a daily basis. In
August, 2006 we installed a state of the art enterprise resource planning system
developed by Ramco Systems, which became operational in April, 2007. This system
will ensure the optimum usages of current resources given the systems strength in
financial postings and analysis. It also gives us an edge in our inventory management
through the creation of a detailed virtual warehouse with bins and sections along with
a logistics solution.

Our Strategy

Principal elements of our strategy are the following:

Increase geographic penetration by spreading our network of exclusive
brand outlets.
We will focus on maintaining and reinforcing the image of our existing exclusive
brand outlets and also introduce our apparel to new geographic areas and consumer
sectors that are presently less familiar with our apparel. For the “Koutons” brand, we
have an established network in north/north western India and are expanding our
network in western and eastern India. We have also opened our exclusive brand
outlets in southern India. Further, we have recently launched exclusive brand stores
under “Charlie Outlaw” brand and have opened exclusive brand outlets in the
northern and north-west region. We plan to consolidate our presence across all
regions in India and also seek to increase our business with our existing customers by
offering them apparel that are in line with latest fashion trends and by capitalizing on
our relationships with them by offering them at affordable prices.

Enhancing manufacturing capacities.

We are focused on establishing and increasing our in-house manufacturing facilities
as this allows us to exercise due control over both the manufacturing costs and the
quality of the apparel being manufactured. As of August 20, 2007 we had an in-house
capacity to manufacture 12,360,000 pieces of apparel and finishing capacity of
22,920,000 pieces of apparel, per annum. We intend to expand the finishing and
manufacturing capacity of our existing in-house manufacturing facilities, as well as
establish a new integrated manufacturing facility. We have been allotted
approximately 13,000 square meters of land by the Haryana Urban Development
Authority in Gurgaon, Haryana, where we propose to establish a new integrated
manufacturing facility. We have placed purchase orders for plants and machinery to
increase the finishing and manufacturing capacity of our existing units Prospectus.
We believe that an increase in manufacturing capacity will also help us to enhance
economies of scale, and this would eventually translate to an improvement in the price
competitiveness of our apparel.

Target the growing segments.

We are focused on providing a complete menswear range in the middle to high
fashion segment at affordable prices. This business strategy and brand positioning is
in line with our target market, which is India focused. The Indian market is very
different from mature markets as it has a rapidly growing population and a
demographic profile with a young population. While the “Koutons” brand is focused
on the 22 to 45 age bracket, the “Charlie Outlaw” brand is positioned to cater to the
14 to 25 year age bracket. We are focused on a fast growing segment of branded
fashion wear for the young. We intend to consolidate our position by capitalizing on
the growing young population which has increased spending capacity. We also intend
to continue to expand the range of our product lines, thereby capitalizing on the name
recognition and popularity of our brands. We are introducing a line of women’s
apparel under the “Les Femme” brand and are also introducing a brand “Koutons
Junior” which is targeted at children. We intend to continue to undertake line
extensions which are within the sphere of our core competence.

Strengthen the competitive position and recognition of our brands.

We intend to continue to enhance the recognition of our brands by aggressively
marketing our brands to both consumers and franchisees. We have made a strategic
decision to focus on branded apparel and to market the same through exclusive brand
outlets. Our brand and marketing strategy for our brands “Koutons” and “Charlie
Outlaw” will continue to focus on advertisements in print and broadcast media, as
well as direct marketing to consumers through billboards, event sponsorships,
celebrity sponsorships, special event advertisements and advertisements in selected
periodicals. In addition, we will continue to have a strong presence at trade shows and
events throughout the country.
Further improving our cost structure. We believe in providing quality apparel at
affordable prices. We have improved our operating margins and cost structure by
consolidating our manufacturing and distribution operations, reducing our
selling, general and administrative costs, and by actively seeking efficient sources of
production, whether through internal sources of supply or through outsourcing. We
intend to continue to:
(a) identify efficient manufacturing operations and improved raw material sourcing;
and
(b) maintain and enhance a low cost infrastructure and a flexible supply chain.
Pursuing potential strategic acquisitions to complement our existing
brand portfolio.
We believe that, over the long term, attractive opportunities will exist to increase
revenues and earnings in our core operating units with acquisitions of complementary
product lines and businesses. In addition to our plans to expand our in-house
manufacturing capacities, we also look forward to acquiring or merging with
businesses with synergetic possibilities for our designing, manufacturing and retail
operations. We intend to pursue these opportunities, in a disciplined manner, to the
extent that they become available. As part of the active management of our brands, we
will also continue to assess our brand portfolio and may choose to rationalize certain
assets over time.
Exports of apparel under our “Koutons” and other brands. Till Fiscal
2005, we had been exporting garments and discontinued the same to concentrate on
our present business model of establishing our exclusive brand outlets throughout
India. We believe that our apparel would also have an acceptance outside India and
consequently, as a part of our strategy, we intend to enter the overseas market as a
possible business thrust.

Our Business Processes

We have set out below our business processes for:

(a) our manufacturing; and
(b) our sales operations.
Manufacturing processes

Our business model for manufacturing of apparel involves

conceptualization and designing,
finalizing the product and design,
procuring raw material,
manufacturing apparel either through our in-house manufacturing/
finishing units or through third-party sourcing,
finishing and packaging, and
storing in warehouses.

Our Company has entered into agreements with various entities in India to market and
sell its apparel under the “Koutons” and “Charlie Outlaw” brands. The franchise
arrangement of the Company is essentially structured on three models namely:
(a) locations which are Company owned/ leased and Company operated (COCO);
(b) franchise locations which are Company owned/ leased and franchisee operated
(COFO); and
(c) franchise locations which are franchisee owned/leased and franchisee operated
(FOFO).
Our Brands
Koutons

The focus market for our “Koutons” brand is the male population from 22 to 45 years
of age, living in metros, Tier-I (roughly corresponding to State capitals and important
cities like Lucknow, Hyderabad, Chandigarh, Ahmedabad), and Tier-II cities (roughly
corresponding to district headquarters) and lying within socio-economic classes
namely Sec-A and Sec-B of the population. Our Company has registered the trade
mark “Koutons” under the Trade Marks Act, 1999.

Charlie Outlaw

With our “Charlie Outlaw” brand, we have targeted the fashion conscious age group
from 14 to 25 years including
school goers and young professionals. This range is also priced at affordable levels
with a fashion first approach. Our Company has filed an application dated July 24,
2006 before the Trade Marks Registry, New Delhi for trademark registration of the
mark “Charlie Outlaw” under the Trade Marks Act of 1999.

Our Products

Our product range caters to the men’s wear fashion requirements of the middle
income segment. The range includes the following:
Trousers Formal trousers
Chinos
Casual
Cargos
Capris
Denimwear Jeans
Shirts
Jackets
Suits and Blazers Formal and party wear
Jackets
Shirts Formal
Semi formal
Casual
Party wear in a wide range of fabrics and designs
Knit wear T-Shirts
Sweaters
Pullovers
Track suits
Sweat shirts
Plant and Machinery
Our manufacturing facilities have more than 3,500 machines mainly comprising of
sewing machine, over lock machines, washing machine, kaz machines, bar tech,
button machine, topper, spotting gun machine, edge cutter, belt attachment
machine, electro pneumatic pressing machines, repit machine, steam press, loop
maker, fusing cutting and pasting machine, belt folder machine, vacuum iron tables,
checking tables, shirt folding tables, cad/cam plotter machine, hydro expeller,
tumbler, compressor, boiler, transformer and other miscellaneous machines.

Human Resources
We believe that our employees are key contributors to the success of our business. To
achieve this, we focus on hiring and retaining the best talent in the industry. We have
a policy of hiring fresh graduates and training and developing newly hired
professionals. We view this process as a necessary tool to maximize the performance
of our employees.
Our work force consists of:
our permanent employees; and
consultants who are engaged by us on a contractual basis.
The third party manufacturers with whom we have entered into fabrication
agreements also employ workers on a contractual basis.

The table below provides details of our permanent employees as of March 31, 2005,
March 31, 2006 and March 31,
2007:
As of March 31 2005 As of March 31 2006 March 31, 2007
316 356 622

We conduct periodic reviews of our employees’ job performance, and determine

salaries and discretionary bonuses based upon those reviews. In addition, we offer
internal training programs tailored to different job requirements to enhance our
employees’ talents and skills. We believe that we maintain a good working
relationship with our employees and we have not experienced any strikes or lockouts
or other significant labour disputes. Typically, our employees are not subject to any
collective bargaining agreements or represented by labour unions.

Corporate Social Responsibility

We are aware of our corporate social responsibilities and have made significant
efforts to preserve the environment in and around our manufacturing facilities. As a
socially responsible company, we believe that great emphasis should be placed on
social and community service. This attitude has allowed us to engage in numerous
social activities with the wholehearted support of our employees. From time to time
we have organized free community kitchens on festive occasions.

Insurance
Our operations are subject to hazards and risks inherent in the process of
manufacturing, such as mechanical failure of equipment at our facilities and natural
disasters. In addition, many of these operating and other risks may cause personal
injury and loss of life, severe damage to or destruction of our properties and the
properties of others and environmental pollution, and may result in suspension of
operations and the imposition of civil or criminal penalties.
We may also be subject to claims arising from defects in our apparel. However, we do
not maintain any insurance policies to cover such claims. We generally maintain
insurance covering our assets and operations at levels that we believe to be
appropriate for our business at reinstatement values. As of August 20, 2007, the
Company has made insurance claims aggregating to Rs. 2.62 million, which are
currently pending with the relevant insurance companies.

Information Technology
We believe that business pre-eminence can be achieved only through efficiency that
gives you a competitive edge and a state of art information flow system. We are
currently maintaining our sale and store inventories on a specially developed
computer application. Mirror images of the data bases are maintained at the head
office and the different stores. All daily transactions at either end are updated through
pooling of incremental data of new transactions. This helps us to maintain a complete
control from the Head Office over all the stocks and sales on a daily basis.
In order to take the data flow and automation to a further level, we have taken a state
of the art enterprise resource planning system developed by Ramco Systems, which
will ensure optimum usages of current resources through well mapped and transparent
practices. This system is extremely strong in financial postings and analysis. It also
gives an edge to us in our inventory management through the creation of a detailed
virtual warehouse with bins and sections along with a logistics solution.

Competition
The apparel manufacturing and retail industry in India is highly fragmented, with a
large number of small and medium sized manufacturers. Most of the established
brands in men’s wear cater to either one or the other product line but do
not cover the entire gamut of products catering to the entire need of this class of
customer. We have a product mix in the men’s segment which is comprehensive and
which covers formal wear, semiformal wear, party wear and casual wear including
trousers, denim jeans, denim shirts, shirts, t-shirts, jackets, sweaters, pullovers, shorts,
blazers, suits, cargos, track suits etc. Accordingly, we face product-wise competition
from established Indian and international brands
operating in India. This trend is likely to continue with our diversification into other
segments like women’s and youngsters’ wear.

Property
Our corporate office is located at 274-275, Udyog Vihar, Phase-VI, Sector-37,
Gurgaon 122001 (Haryana), India. In addition to the above, we also have 18 in house
manufacturing units and 14 warehouses which are located in and around Gurgaon,
Haryana, India. For details of our manufacturing units/warehouses see section titled
“Our Business-
Collaborations
The Company has not entered into any collaborations or submitted any performance
guarantees to any collaborator with respect to its business, including its marketing
activities.
Contact Information

Koutons Retail India Ltd. CMIE

database

Registered office

Address
T-60/1, D C M School Road, New Rohtak Road,
Karol Bagh,

Street
New Delhi
110005
City Pincode
Delhi

State

Email address

www.koutons.com
Website

Telephone and fax

numbers

Country code 91
11-65451320

Tel no.

11-23414602
Fax no.

RESEARCH OBJECTIVES
To compare the income of different Garment industries.

To compare the sale of different Garment industries.

PBT of major players can be analysed.

PAT of major players can be analysed.

Growth percent of Total Income of Garment manufacturing industries can be

compared.

Growth percent of PAT of Garment manufacturing industries can be compared.

Growth percent of Net worth of Garment manufacturing industries can be compared.

Growth percent of Total Assets of Garment manufacturing industries can be

compared.
 INDIVIDUAL PERFORMANCE
OF
COMPANIES

Performance of Raymond Apparel Ltd.

Raymond Apparel
Ltd. Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
Total income (Rs. 222.55 256.97
Cr.) 180.5 176.63 186.85
173.49 175.6 185.81 202.17 255.32
Sales
7.82 3.65 12.37 23.08 16.46
PAT
6.52 2.33 7.95 14.86 10.73
PBT

300

250
To tal income
200
(Rs. Cr.)
Sa le s
150
PAT
100

50

0
Mar 2003 M ar 2004 Mar 2005 Mar 2006 Mar 2007

Interpretation
In this graph we can see that Total Income, Sales, PBT, PAT is given. By analysing
this graph we can find that there is an increase in total income and total sales of
Raymond Apparel Ltd. over a period of 2003-2007.There is a constant increase in
Total Income and sales .But there is fluctuation in PBT and PAT over this period.

Company performance
Growth (%) Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
21.175212 42.830031 32.825434 17.688168 32.052699
Total income

PAT NA 170.01433 52.645803 23.600792 25.154361

Net worth 4.139453 39.122356 14.611036 34.284172 24.327034

Total assets 2.0689121 22.888959 35.875348 16.917307 20.892225

180
160
140
120 Tota l in co me
100 P AT
80 Net worth
60 Tota l a sse ts
40
20
0
Mar 2003 Mar 2004 Mar 20 05 Mar 2006 Mar 2007

Interpretation

In this graph we can se that Growth (%) in Total Income, PAT, Net Worth and Total
Assets is given. By analysing this graph we can find that there is a vast increase in
PAT in the year 2004 and there is

Performance of Zodiac Clothing Co. Ltd.

Zodiac
Clothing Co.
Ltd.
Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
Total income (Rs.
Cr.) 123.25 166.64 165.98 179.05 216.99
Sales 122.12 164.31 161.48 173.66 210.43
PAT 4.82 13 11.37 13.2 23.71
PBT 3.18 9.03 7.44 9 14.09

250

200
Total in co me
150 Sales

100 PAT
PBT
50

0
Mar 2003 M ar 2004 Mar 2005 Mar 2006 Mar 2007

Interpretation
In this graph we can se that Total Income, Sales, PBT, PAT is given. By analysing
this graph we can find that there is an increase in total income and total sales of
Zodiac Clothing Co. Ltd. over a period of 2003-2007.But there is fluctuation in PBT
and PAT over this period.

Company performance

Growth (%) Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Total income 68.997669 35.2048682 -0.39606337 7.8744427 21.1896118

PAT -33.1932773 183.962264 -17.6079734 20.9677419 56.5555556

Net worth 9.81432361 12.1175523 59.2100539 4.43166441 8.6707699

Total assets 51.8213866 8.69084476 41.363174 9.73661485 10.8138239

 200

150
Total incom e
100 PAT
N et w orth
50
Total assets
0
Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
-50

Interpretation

In this graph we can se that Growth (%) of Total Income, PAT, Net Worth and Total
Assets is given. By analysing this graph we can find that there is a vast increase in
PAT in the year 2004. The company has faced a negative growth total income &
assets in the year 2003-05.There is a negative trend in growth % of total income.
Year 2004 is best year for the company.

Performance Provogue (India) Ltd.

Provogue Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
(India) Ltd.

Total income (Rs.

Cr.) 41 30.91 115.41 157.33 240.64
Sales 40.78 27.39 115.02 156.41 238.67
PAT 1.88 4.4 7.22 11.93 19.6
PBT 2.98 4.61 9.27 14.09 23.2

300

250

200 To tal income

Sa le s
150
PAT
100 PB T
50

0
Mar 2003 M ar 2004 Mar 2005 Mar 2006 Mar 2007

Interpretation
In this graph we can se that Total Income, Sales, PBT, PAT is given. By analysing
this graph we can find that there is an increase in total income and total sales of
Provogue (India) Ltd. over a period of 2003-2007.Total income , sales, PBT and PAT
has also in increasing trend.

Company performance

Growth (%) Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Total income NA 127.347555 86.6871563 36.3226757 52.9523931

 PAT NA 2091.03667 -17.9545455 65.2354571 64.2917016

Net worth NA 333.352511 305.514019 150.702927 133.949255

Total assets NA 10.4998829 131.726513 103.608576 91.7587573

2500

2000

1500 Tota l in co me
P AT
1000
Net worth
500 Tota l a sse ts

-500 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Interpretation
In this graph we can se that Growth (%) of Total Income, PAT, Net Worth and Total
Assets is given. By analysing this graph we can find that there is a growth% of PAT is
very high in2004 as compared to other year. Growth % in net worth also decresed
from the year 2004 to 2007.

Performance Vishal Retail Ltd.

Vishal Retail
Ltd.
Mar 2005 Mar 2006 Mar 2007
Total income (Rs.
Cr.) 147.12 289.1 608.24
 Sales 147.03 288.93 603.77
PAT 3.01 12.39 25.07
PBT 4.97 18.61 39.27

700
600
500 To tal income
400 Sa le s
300 PAT
200 PB T

100
0
Mar 2005 Mar 2006 Mar 2007

Interpretation
In this graph we can se that Total Income, Sales, PBT, PAT is given. By analysing
this graph we can find that there is an increase in total income and total sales of
Vishal retail Ltd. over a period of 2003-2007.Total income , sales, PBT and PAT has
also in increasing trend. Year 2007 is very good for company.

Company performance

Growth (%) Mar 2005 Mar 2006 Mar 2007

Total income NA 96.5062534 110.390868

PAT NA 311.627907 102.340597

 Net worth NA 140.251157 74.3603851

Total assets NA 147.420758 175.810098

350
300
250 Tota l in co me
200 P AT
150 Net worth
100 Tota l a sse ts

50
0
Mar 2005 Mar 2006 Mar 2007

Interpretation
In this graph we can se that Growth (%) of Total Income, PAT, Net Worth and Total
Assets is given. By analysing this graph we can find that PAT has showed a vast
growth in 2006 as compared to the other year.Total income and total assets has
showed increased in growth%. While PAT and net worth has showed negative trend.

Performance of Koutons Retail India Ltd.

Koutons Retail
India Ltd.
Mar 2003 Mar 2004 Mar 2006 Mar 2007
Total income (Rs.
Cr.) 23.57 38.01 158.38 405.02
 Sales 23.55 37.83 158.34 402.4
PAT 0.47 0.9 13.62 33.95
PBT 0.58 1.2 20.88 52.07

450
400
350
300 Total income
250 Sales
200 PAT
150 PBT
100
50
Interpretation
0
Mar 2003 Mar 2004 Mar 2006 Mar 2007

Interpretation:-
In this graph we can se that Total Income, Sales, PBT, PAT is given. By analysing
this graph we can find that there is an increase in total income and total sales of
Koutons Retail India Ltd. over a period of 2003-2007.Total income , sales, PBT and
PAT has also in increasing trend. Year 2007 is very good for company.

Company performance

Growth (%) Mar 2003 Mar 2004 Mar 2006 Mar 2007

Total income NA 61.264319 104.127367 155.726733

PAT NA 91.4893617 289.015852 149.265786

 Net worth NA 26.4534884 117.66789 689.42261

Total assets Na 24.4266667 141.494845 272.409231

800
700
600
Tota l in co me
500
P AT
400
Net worth
300
Tota l a sse ts
200
100
0
Mar 2003 Mar 2004 Mar 2006 Mar 2007

Interpretation

In this graph we can se that Growth (%) of Total Income, PAT, Net Worth and Total
Assets is given. By analysing this graph we can find that Growth % of Net worth in
the year 2007 has increased a lot as compared to 2006. Total income and assets has an
increasing trend. But PAT has dropped down in 2007 to 2006 year 2007 is very good
for the company.

COMPARITIVE
 ANALYSIS
OF
MAJOR PLAYERS
IN
GARMENT
INDUSTRY

Comparative Analysis of Total Income

Total Income(Rs. Crore)

Years Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Raymond Apparel Ltd. 180.5 176.63 186.58 222.55 256.97

Provogue (India) Ltd.
41 30.91 115.41 157.33 240.64
Zodiac Clothing Co. Ltd.
123.25 166.64 165.98 179.05 216.99
Vishal Retail Ltd. NA NA
147.12 289.1 608.24
Koutons Retail India Ltd. NA
23.57 38.01 158.38 405.02

Comparative Analysis of Total Income

700
Interpretation

600
By analysing this graph we can find that in year 2007 –Is the best for
vishal retail Ltd. As it has a maximum growth as compared to other
Raymond and Provogue has showing increasing trend.

500
Comparative Analysis of Total Sales

400
Total Sales

Years Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Raymond Apparel Ltd. 173.49 175.6 185.81 202.17 255.32

Provogue (India) Ltd.
40.78 27.39 115.02 156.41 238.67
Zodiac Clothing Co. Ltd.
122.12 164.31 161.48 173.66 210.43
Vishal Retail Ltd. NA NA
147.03 288.93 603.77
Koutons Retail India Ltd. NA
23.55 37.83 158.34 402.4

Comparative Analysis of Total Sales

700

600

500 Raymond Apparel Ltd.

400 Provogue (India) Ltd.

Zodiac Clothing Co. Ltd.
300 Vishal Retail Ltd.
200 Koutons Retail India Ltd.

100

0
Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Interpretation:

By comparative analysing this graph we find that Sale in year 2007 is a good year for
vishal retail. It has reached to 603.77 crore in 2007 . Provogue has also observed an
increasing trend.

Comparative Analysis of PBT

PBT(Rs Crore)

Years Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Raymond Apparel Ltd. 7.82 3.65 12.37 23.08 16.46

Provogue (India) Ltd.
2.98 4.61 9.27 14.09 23.2
Zodiac Clothing Co. Ltd.
4.82 13 11.37 13.2 23.71
Vishal Retail Ltd. NA NA
4.97 18.61 39.27
Koutons Retail India Ltd. NA
0.58 1.2 20.88 52.07

Comparative Analysis of PBT

60

50

Raymond Apparel Ltd.

40
Provogue (India) Ltd.
30 Zodiac Clothing Co. Ltd.
Vishal Retail Ltd.
20
Koutons Retail India Ltd.

10

0
Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Interpretation
By comparative analysis this graph we come to know that Koutons retail India Ltd.has
perfume well as its PBT was maximum in 2007.PBT of provage is also increasing
from 2003-2007. earlier Raymond has also showed growth but it had decrease in
2007.
 Comparative Analysis of PAT

PAT(Rs Crore)

Years Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Raymond Apparel Ltd. 6.52 2.33 7.95 14.86 10.73

Provogue (India) Ltd.
1.88 4.4 7.22 11.93 19.6
Zodiac Clothing Co. Ltd.
3.18 9.03 7.44 9 14.09
Vishal Retail Ltd. NA NA
3.01 12.39 25.07
Koutons Retail India Ltd. NA
0.47 0.9 13.62 33.95

Comparative Analysis of PAT

40

35

30
Raymond Apparel Ltd.
25 Provogue (India) Ltd.
20 Zodiac Clothing Co. Ltd.

15 Vishal Retail Ltd.

Koutons Retail India Ltd.
10

0
Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Interpretation
By comparayive analyses of this graph we can conclude that Raymond has increase in
2003,2005,2006 but it decrease in 2003 & 2007,in the case of provogue it is
increasing it is increasing every year, zodic also have fluctuing graph,vishal & kutons
have a increasing grap in every year.
 Comparative Analysis of Growth (%) in Total Income

Growth (%) in Total Income

Years Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

-
Raymond Apparel Ltd. 17.3831046 2.14404432 5.63324464 19.2785936 15.4661874
Provogue (India) Ltd.
NA 127.347555 86.6871563 36.3226757 52.9523931
Zodiac Clothing Co. Ltd. -
68.997669 35.2048682 0.39606337 7.8744427 21.1896118
Vishal Retail Ltd.
NA NA NA 96.5062534 110.390868
Koutons Retail India Ltd.
NA 61.264319 NA 104.127367 155.726733

Comparative Analysis of Growth (%) in Total Income

180
160
140
120 Raymond Apparel Ltd.
100 Provogue (India) Ltd.
80 Zodiac Clothing Co. Ltd.
60 Vishal Retail Ltd.
40 Koutons Retail India Ltd.

20
0
-20 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Interpretation
From the above graph we can see that growth % in total income of Provogue,zodiac is
an decreasing trend and in case of Koutons & vishal has a increasing trend but
raymond has a fluctuating graph.
Comparative Analysis of Growth (%) in PAT

Growth (%) in PAT

Years Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Raymond Apparel Ltd. 492.727273 -64.2638037 241.201717 86.918239 -27.7927322

Provogue (India) Ltd.
2091.03667 -17.9545455 65.2354571 64.2917016
Zodiac Clothing Co. Ltd.
-33.1932773 183.962264 -17.6079734 20.9677419 56.5555556
Vishal Retail Ltd.
311.627907 102.340597
Koutons Retail India Ltd. NA
91.4893617 289.015852 149.265786

Comparative Analysis of Growth (%) in PAT

2500

2000

1500 Raymond Apparel Ltd.

Provogue (India) Ltd.
1000 Zodiac Clothing Co. Ltd.
Vishal Retail Ltd.
500 Koutons Retail India Ltd.

0
Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
-500

Interpretation
From the above graph we can see that PAT % is decreasing order only in 2006 it is
increasing with Raymond, Provogue, zodiac ,vishal ,Koutons.
 Comparative Analysis of Growth (%) in Net Worth

Growth (%) in Net Worth

Years Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Raymond Apparel Ltd. 17.3054588 6.46039604 19.1118345 93.6170213 10.4950096

Provogue (India) Ltd.
333.352511 305.514019 150.702927 133.949255
Zodiac Clothing Co. Ltd.
9.81432361 12.1175523 59.2100539 4.43166441 8.6707699
Vishal Retail Ltd.
140.251157 74.3603851
Koutons Retail India Ltd.
26.4534884 117.66789 689.42261

Comparative Analysis of Growth (%) in Net Worth

800

700

600
Raymond Apparel Ltd.
500 Provogue (India) Ltd.
400 Zodiac Clothing Co. Ltd.

300 Vishal Retail Ltd.

Koutons Retail India Ltd.
200

100

0
Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Interpretation
From the above graph we can see that net worth of Raymond is increasing in 2006 but
it decrease in 2007 ,in case of Provogue it has a decreasing trend but in case of
Koutons it is increasing in 2006,2007.

Comparative Analysis of Growth (%) in Total Assets

 Growth (%) in Total Assets
Years Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Raymond Apparel Ltd. -8.38724949 -22.0652829 0.05525472 65.4959134 52.3424987

Provogue (India) Ltd.
10.4998829 131.726513 103.608576 91.7587573
Zodiac Clothing Co. Ltd.
51.8213866 8.69084476 41.363174 9.73661485 10.8138239
Vishal Retail Ltd.
147.420758 175.810098
Koutons Retail India Ltd.
24.4266667 141.494845 272.409231
Comparative Analysis of Growth (%) in Total Assets

300

250

200
Raymond Apparel Ltd.
150 Provogue (India) Ltd.
Zodiac Clothing Co. Ltd.
100 Vishal Retail Ltd.
Koutons Retail India Ltd.
50

0
Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
-50

Interpretation
From the above graph we can see that the total assets of Provogue and vishal is
increasing in 2006,2007 but in case of and zodiac it has a decreasing trend.

FINDINGS
1.Performance of total income
By comparative analysing the graph we can find that in year 2007 –Is the
best for vishal retail Ltd. As it has a maximum growth as compared to
other Raymond and Provogue has showing increasing trend.
On the basis of performance of total income
2.Performance of total sales
By comparative analysing the graph we find that Sale in year 2007 is a good year for
vishal retail. It has reached to 603.77 crore in 2007 . Provogue has also observed an
increasing trend.

3. Performance of PAT
By comparative analyses of the graph we can conclude that Raymond has increase in
2003,2005,2006 but it decrease in 2003 & 2007,in the case of provogue it is
increasing it is increasing every year, zodic also have fluctuing graph,vishal & kutons
have a increasing graph in every year.

4. Performance of PBT
By comparative analysis we come to know that Koutons retail India Ltd.has perfume
well as its PBT was maximum in 2007.PBT of provage is also increasing from 2003-
2007. earlier Raymond has also showed growth but it had decrease in 2007.
5. Growth (%) in Total Income
Growth% in the total income of five branded companies during the period 2003-
2007.From the comparative analysis of graph we can see that growth % in total
income of Provogue, zodiac is an decreasing trend and in case of Koutons & vishal
has a increasing trend but Raymond has a fluctuating graph.
6. Growth (%) in PAT
PAT of five branded companies during the period 2003-2007.From the comparative
analysis of graph we can see that PAT % is decreasing order only in 2006 it is
increasing with Raymond, Provogue, zodiac ,vishal ,Koutons.
7. Growth (%) in Net Worth
Net Worth of five branded companies during the period 2003-2007.From the
comparative analysis of graph we can see that net worth of Raymond is increasing in
2006 but it decrease in 2007 ,in case of Provogue it has a decreasing trend but in case
of Koutons it is increasing in 2006,2007.

8. Growth (%) in Total Assets

Growth (%) in total assets of five companies during the period 2003-2007.From the
comparative analysis of graph we can see that the growth% in total assets of Provogue
and vishal is increasing in 2006,2007 but in case of and zodiac it has a decreasing
trend.

CONCLUSION
I would like to conclude that there are many branded garment companies in garment
industry but some main players are –
In above companies Vishal Retail Ltd. overall capture the maximum percentage of
market share and customer loyalty towards their product line.
LIMITATION

Though this study providing better knowledge about this field but still it
have some limitation

Due to short time span, study could not be so deep.

Due to data collected much earlier of submission of report, the most
current data could not be well presented.
BIBLIOGRAPHY

CMIE –Centre of Monitoring Indian Economy

IAS
PROWESS

www.raymondindia.com

www.provogue.com

www.zodiac.com

www.vishalmegamat.com

www.koutons.com

Reference Book

Principles of Statistics-Ramendu Roy

Statistical Methods-S P Gupta
ANNEXURE

Financials at a Glance of Raymond Apparell Ltd.

Executive Summary (CMIE Database)

Raymond Apparel Ltd. Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
-
Total income 153.77 180.5 176.63 186.58 222.55 256.97
Sales 152.02 173.49 175.6 185.81 202.17 255.32
Income from financial services 1.1 6.7 0.6 0.54 1.08 1.14

Total expenses 169.81 169.68 166.4 172.34 221.31 251.91

Raw material expenses 46.74 54.07 53.18 61.85 88.85 73.85
Power, fuel & water charges 1.43 1.55 1.78 1.65 1.85 2.38
Compensation to employees 9.21 11.85 11.05 11.02 14.6 17.95
Indirect taxes 16.39 14.1 12.77 2.55 0 0
Selling & distribution expenses 27.73 31.22 37.75 38.96 40.85 50.91
Other operational exp. of indl. enterprises 0.69 0.61 0.73 0.83 1.08 1.43
Other oper. exp. of non-fin. service enterprises 0 0 0 0 0 0

PBDITA 5.27 12.93 7.48 14.93 26.23 24.04

PBDTA 2.71 9.01 5.06 13.73 25.17 21.01
PBT 1.73 7.82 3.65 12.37 23.08 16.46
PAT 1.1 6.52 2.33 7.95 14.86 10.73

Net worth 34.44 40.95 43.28 51.23 99.19 109.6

Paid up equity capital (net of forfeited capital) 2 2 2 2 2 2
Reserves & surplus 32.44 38.95 41.28 49.23 62.89 73.3

Total borrowings 56.87 41.33 19.99 9.86 18.83 82.35

Current liabilities & provisions 34.36 31.8 26.14 27.86 29.8 35.06

Total assets 126.74 116.11 90.49 90.54 149.84 228.27

Gross fixed assets 15.42 18.02 18.79 20.25 32.75 53.31
Net fixed assets 9.16 10.82 10.58 10.72 21.49 37.99
Investments 15.81 0.56 0.55 0.55 34.84 63.48
Current assets 101.38 101.66 78.14 77.17 93.06 126.13
Loans & advances 0.39 1.6 0.95 2.1 0 0.01

Growth (%)
-
Total income 7.58413209 17.3831046 2.14404432 5.63324464 19.2785936 15.4661874
- -
Total expenses 19.7616193 0.07655615 1.93305045 3.56971154 28.4147615 13.8267588
- - -
PBDITA 68.4431138 145.351044 42.1500387 99.5989305 75.6865372 8.34921845
- - -
PAT 86.7310012 492.727273 64.2638037 241.201717 86.918239 27.7927322
Net worth 0.34965035 17.3054588 6.46039604 19.1118345 93.6170213 10.4950096
- -
Total assets 40.0906378 8.38724949 22.0652829 0.05525472 65.4959134 52.3424987

Profitability ratios (%)

 PBDITA Net of P&E/Total income net of P&E 3.28295987 7.12741784 4.13714933 7.97233541 7.55918136 9.5197289
PAT Net of P&E/Total income net of P&E 0.56670141 3.57479355 1.21847549 4.23010937 2.19749128 4.33529389
PAT Net of P&E/Avg. net worth 2.53054101 17.1110227 5.10506945 16.6966459 6.19598458 10.6614301
PAT/Avg. net worth 3.19953461 17.2967237 5.53247062 16.8236165 19.7580109 10.27827
PAT Net of P&E/Avg. total assets 0.80106809 5.31192094 2.08131655 8.71678727 3.87719444 5.88717569
PAT/Avg. total assets 1.01284471 5.36956969 2.25556631 8.78307463 12.3637574 5.67559705

Liquidity ratios (times)

Current ratio 1.69730454 3.15322581 1.90585366 2.17319065 2.05930516 1.92977356
Debt to equity ratio 1.65127758 1.0230198 0.46477563 0.19246535 0.18983769 0.75136861
Interest cover 1.5859375 2.97704082 2.4338843 11.2583333 13.1509434 6.56435644
Debtors (days) 74.4189909 74.971324 63.6879271 51.7513858 44.7380917 38.0982688
Creditors (days) 70.7653061 65.6632716 53.3454557 59.6726028 47.6684951 50.2824123

Efficiency ratios (times)

Total income / Avg. total assets 1.41586483 1.48988857 1.71668772 2.06439478 1.85165155 1.35923409
Total income / Compensation to employees 16.6959826 15.2320675 15.9846154 16.9310345 15.2431507 14.3158774

Financials at a Glance of Zodiac Co. Ltd.

Executive Summary (CMIE Database)

Zodiac Clothing Co. Ltd. Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
-
Total income 72.93 123.25 166.64 165.98 179.05 216.99
Sales 72.06 122.12 164.31 161.48 173.66 210.43
Income from financial services 0.8 0.65 1.48 0.84 1.53 2.58

Total expenses 67.6 124.25 156.53 156.9 174.75 204.88

Raw material expenses 34.38 41.63 57.69 59.13 61.46 69.25
Power, fuel & water charges 0.74 1.4 1.97 2.13 2.61 3.03
Compensation to employees 8.52 13.22 18.42 23.37 26.07 30.76
Indirect taxes 0 3.71 4.26 1.28 0.46 1.05
Selling & distribution expenses 7.44 17.56 25.15 25.18 25.19 29.11
Other operational exp. of indl. enterprises 0 0 0 0 0 0
Other oper. exp. of non-fin. service enterprises 0 0 0 0 0 0

PBDITA 7.14 6.54 14.61 13.64 16.79 28.51

PBDTA 6.36 5.58 14.05 12.92 15.5 26.93
PBT 5.77 4.82 13 11.37 13.2 23.71
PAT 4.76 3.18 9.03 7.44 9 14.09

Net worth 45.4 49.77 55.78 88.69 92.61 100.64

Paid up equity capital (net of forfeited capital) 3.39 3.39 3.43 4.18 8.36 8.36
Reserves & surplus 42.01 46.34 52.35 84.51 84.25 92.28

Total borrowings 3.05 14.73 16.33 15.69 22.63 29.24

Current liabilities & provisions 9.71 24.63 23.95 32.4 34.49 35.9

Total assets 59.57 90.44 98.3 138.96 152.49 168.98

Gross fixed assets 11.9 18.4 31.71 36.52 45.19 52.95
Net fixed assets 8.94 14.46 24.62 27.42 33.83 38.08
Investments 27.82 17.11 17.1 44.71 27.58 27.18
Current assets 18.7 58.14 56.06 61.48 69.87 82.18
Loans & advances 3.64 0.64 0 4.39 19.5 20.8

Growth (%)
-
Total income 6.59163987 68.997669 35.2048682 0.39606337 7.8744427 21.1896118
Total expenses 10.7289107 83.8017751 25.9798793 0.23637641 11.376673 17.241774
- - -
PBDITA 26.9191402 8.40336134 123.394495 6.63928816 23.0938416 69.8034544
- - -
PAT 37.6146789 33.1932773 183.962264 17.6079734 20.9677419 56.5555556
Net worth 4.98955674 9.81432361 12.1175523 59.2100539 4.43166441 8.6707699
Total assets 1.24065262 51.8213866 8.69084476 41.363174 9.73661485 10.8138239

Profitability ratios (%)

PBDITA Net of P&E/Total income net of P&E 10.2250892 5.26016722 8.94113403 8.03609278 9.01275496 13.2309537
PAT Net of P&E/Total income net of P&E 6.95855065 2.53267311 5.58595394 4.2814752 4.63561274 6.58088913
PAT Net of P&E/Avg. net worth 11.4279274 6.55668803 17.6030317 9.78749913 9.10093767 14.7684347
PAT/Avg. net worth 10.7291784 6.68277819 17.1103742 10.2997162 9.92829564 14.5821475
PAT Net of P&E/Avg. total assets 8.56346592 4.15972269 9.84423016 5.95970665 5.66134843 8.87796684
PAT/Avg. total assets 8.0398615 4.23971735 9.56871887 6.27160078 6.17601647 8.76598127

Liquidity ratios (times)

Current ratio 1.46551724 1.48429921 1.3917577 1.27843627 1.25665468 1.31888942
 Debt to equity ratio 0.06741821 0.29649758 0.29317774 0.17692828 0.24435806 0.29054054
Interest cover 8.79487179 5.95833333 24.6785714 16.2777778 10.6511628 16.1202532
Debtors (days) 31.7082986 32.9073862 43.1509038 42.4831248 33.5343487 33.9623628
Creditors (days) 35.798961 58.6093409 51.3431525 58.7944343 54.6234117 50.1633086

Efficiency ratios (times)

Total income / Avg. total assets 1.23599695 1.64596688 1.76740733 1.39967112 1.22872632 1.349986
Total income / Compensation to employees 8.55985915 9.32299546 9.04668838 7.10226786 6.86804756 7.05429129

Financials at a Glance of Provogue (India) Ltd.

Executive Summary (CMIE Database)

Provogue (India) Ltd. Sep 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007
Rs. Crore (Non-Annualised) 12 mths 6 mths 12 mths 12 mths 12 mths
-
Total income 41 30.91 115.41 157.33 240.64
Sales 40.78 27.39 115.02 156.41 238.67
Income from financial services 0.05 0.03 0.26 0.84 1.3

Total expenses 44.6 31.39 115.3 166.22 238.98

Raw material expenses 24.55 17.62 75.39 110.17 153.73
Power, fuel & water charges 0.15 0.13 0.26 1.07 1.99
Compensation to employees 1.24 1.05 2.51 5.27 8.67
Indirect taxes 2.64 1.78 2.27 2.27 4.15
Selling & distribution expenses 4.6 6.29 15.37 20.24 28.77
Other operational exp. of indl. enterprises 0 0 0 0 0
Other oper. exp. of non-fin. service enterprises 0 0 0 0 0

PBDITA 8.42 6.24 12.88 20.05 32.61

PBDTA 7.4 5.19 11.07 17.57 28.07
PBT 2.98 4.61 9.27 14.09 23.2
PAT 1.88 4.4 7.22 11.93 19.6

Net worth 13.63 10.71 43.74 108.88 254.49

Paid up equity capital (net of forfeited capital) 2.5 2.5 12.15 16.2 19.1
Reserves & surplus 11.13 7.06 31.59 92.68 235.39

Total borrowings 11.18 20.22 33.02 53.36 63.11

Current liabilities & provisions 10.7 9.46 17.07 29.38 50.27

Total assets 38.68 40.66 94.22 191.84 367.87

Gross fixed assets 8.41 10.89 22.05 33.43 50.28
Net fixed assets 7.26 9.36 18.87 27.1 39.47
Investments 0 0 0.02 22.07 120.24
Current assets 22.93 31.29 74.84 138.91 197.77
Loans & advances 0 0 0.12 3.6 10.12

Growth (%)
Total income 127.347555 86.6871563 36.3226757 52.9523931
Total expenses 98.1403406 83.6572157 44.1630529 43.7733125
PBDITA 119.687318 3.20512821 55.6677019 62.6433915
-
PAT 2091.03667 17.9545455 65.2354571 64.2917016
Net worth 333.352511 305.514019 150.702927 133.949255
Total assets 10.4998829 131.726513 103.608576 91.7587573

Profitability ratios (%)

PBDITA Net of P&E/Total income net of P&E 20.6399609 10.1348888 11.246859 12.9807387 13.622008
PAT Net of P&E/Total income net of P&E 4.66536395 3.42690485 6.34260463 7.8189562 8.21559176
PAT Net of P&E/Avg. net worth 0 7.72391126 26.8870523 16.1184642 10.8814707
PAT/Avg. net worth 0 36.1544782 26.5197429 15.6335998 10.7879021
PAT Net of P&E/Avg. total assets 2.36954878 10.8540925 8.59959449 7.06437262
PAT/Avg. total assets 11.0915049 10.7058126 8.3409075 7.00362688

Liquidity ratios (times)

Current ratio 1.30358158 1.61872737 2.00751073 2.34486833 2.0315357
Debt to equity ratio 2.17509728 1.88971963 0.76100484 0.49053135 0.24798617
Interest cover 3.95098039 2.0952381 6.17679558 6.83064516 6.14757709
Debtors (days) 65.9638554 40.4603547 61.6539863 63.0610257
Creditors (days) 97.4683043 109.810903 45.3814651 51.4343583 61.5531098

Efficiency ratios (times)

Total income / Avg. total assets 0.87267081 1.71587868 1.10171212 0.86002752
 Total income / Compensation to employees 33.0645161 29.4380952 45.9800797 29.8538899 27.7554787

Financials at a Glance of Vishal Retail Ltd.

Executive Summary (CMIE Database)

Vishal Retail Ltd. Mar 2005 Mar 2006 Mar 2007

Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths
-
Total income 147.12 289.1 608.24
Sales 147.03 288.93 603.77
Income from financial services 0.06 0.05 0.2

Total expenses 159.48 317.41 749.38

 Raw material expenses 20.22 31.62 34.98
Power, fuel & water charges 5.43 8.68 17.28
Compensation to employees 7.13 15.12 30.01
Indirect taxes 4.59 14.87 34.38
Selling & distribution expenses 5.11 10.53 31.3
Other operational exp. of indl. enterprises 0 12.8 20.45
Other oper. exp. of non-fin. service enterprises 0 0 0

PBDITA 8.88 26.7 67.81

PBDTA 7.9 23.98 54.56
PBT 4.97 18.61 39.27
PAT 3.01 12.39 25.07

Net worth 30.31 72.7 126.76

Paid up equity capital (net of forfeited capital) 14.82 16.49 18.32
Reserves & surplus 15.49 50.6 108.44

Total borrowings 21.26 55.92 262.49

Current liabilities & provisions 11.65 29.31 47.88

Total assets 64.36 159.24 439.2

Gross fixed assets 24.02 50.64 134.01
Net fixed assets 18.58 40.05 108.24
Investments 0 0 0
Current assets 45.73 119.14 330.69
Loans & advances 0 0 0

Growth (%)
Total income 96.5062534 110.390868
Total expenses 99.0280913 136.092121
PBDITA 200.675676 153.970037
PAT 311.627907 102.340597
Net worth 140.251157 74.3603851
Total assets 147.420758 175.810098

Profitability ratios (%)

PBDITA Net of P&E/Total income net of P&E 6.05628059 9.27713762 10.7216052
PAT Net of P&E/Total income net of P&E 2.0663404 4.32540918 3.65760941
PAT Net of P&E/Avg. net worth 0 24.2694884 22.1899128
PAT/Avg. net worth 0 24.0559169 25.1378723
PAT Net of P&E/Avg. total assets 11.1806798 7.395896
PAT/Avg. total assets 11.0822898 8.37845064

Liquidity ratios (times)

Current ratio 1.85743298 1.7167147 1.75376538
Debt to equity ratio 0.70257766 0.76918845 2.07076365
Interest cover 6.10204082 7.88235294 3.74188679
Debtors (days) 0.08211331 0.06347616
Creditors (days) 23.8183422 26.0731554 13.1679878

Efficiency ratios (times)

Total income / Avg. total assets 2.58644599 2.03275182
Total income / Compensation to employees 20.6339411 19.1203704 20.2679107
Financials at a Glance of Koutons Retail India
Ltd.
Executive Summary (CMIE Database)

Koutons Retail India Ltd. Mar 2003 Mar 2004 Mar 2006 Mar 2007
Rs. Crore (Non-Annualised) 12 mths 12 mths 12 mths 12 mths
-
Total income 23.57 38.01 158.38 405.02
Sales 23.55 37.83 158.34 402.4
Income from financial services 0.02 0.18 0.01 1.22

Total expenses 26.83 39.96 199.09 600.64

Raw material expenses 13.67 14.69 92.8 267.67
Power, fuel & water charges 0.19 0.3 1.15 4.45
 Compensation to employees 0.74 1.29 5.29 10.42
Indirect taxes 1.51 3 0.54 3.04
Selling & distribution expenses 4.79 11.53 31.34 94.41
Other operational exp. of indl. enterprises 1.04 1.27 7.9 33.86
Other oper. exp. of non-fin. service enterprises 0 0 0 0

PBDITA 1.43 2.84 24.8 67.63

PBDTA 0.83 1.57 21.88 56.23
PBT 0.58 1.2 20.88 52.07
PAT 0.47 0.9 13.62 33.95

Net worth 3.45 4.36 20.65 163.32

Paid up equity capital (net of forfeited capital) 0.99 0.99 4.99 27.34
Reserves & surplus 2.11 3.01 15.66 135.98

Total borrowings 6.14 9.84 41.88 162.62

Current liabilities & provisions 9.16 9.13 73.31 178.81

Total assets 18.75 23.33 136.06 506.7

Gross fixed assets 3.18 3.66 13.62 50.48
Net fixed assets 1.83 2.05 10.64 43.56
Investments 0 0 0 0
Current assets 16.91 21.1 125.38 462.52
Loans & advances 0 0 0 0

Growth (%)
104.12736 155.72673
Total income 61.264319 7 3
48.937756 123.20914 201.69270
Total expenses 2 5 2
98.601398 172.70161
PBDITA 6 195.50625 3
91.489361 289.01585 149.26578
PAT 7 2 6
26.453488
Net worth 4 117.66789 689.42261
24.426666 141.49484 272.40923
Total assets 7 5 1

Profitability ratios (%)

6.0670343 7.4717179 15.686769 16.664189
PBDITA Net of P&E/Total income net of P&E 7 7 8 1
1.9940602 2.3677979 8.6264603 8.3197066
PAT Net of P&E/Total income net of P&E 5 5 7 5
23.047375 36.505952
PAT Net of P&E/Avg. net worth 0 2 0 1
23.047375 36.908191
PAT/Avg. net worth 0 2 0 6
4.2775665
PAT Net of P&E/Avg. total assets 4 10.44869
4.2775665 10.563818
PAT/Avg. total assets 4 5

Liquidity ratios (times)

1.3929159 1.3836065 1.3601648
Current ratio 8 6 9 1.7500473
1.7848837 2.2620689 2.0320232
Debt to equity ratio 2 7 9 0.9995083
1.9666666 1.9448818 8.1643835 5.5350877
Interest cover 7 9 6 2
13.029883
Debtors (days) 45.106397 2
 130.19470 85.105624 134.58035 105.04843
Creditors (days) 4 5 2 2

Efficiency ratios (times)

1.8074179 1.2615480
Total income / Avg. total assets 7 5
31.851351 29.465116 29.939508 38.869481
Total income / Compensation to employees 4 3 5 8