Cantabil Retail India Ltd - Stock Valuation and Financial Performance

Cantabil Retail India was originally incorporated as “Kapish Sales” on February 09, 1989 under the Companies Act, 1956 with the registrar of companies NCT Delhi and Haryana. The name of the company was subsequently changed to “Kapish Products” pursuant to a fresh certificate of incorporation dated May 15, 1995. Pursuant to the scheme of amalgamation approved by the High Court of Delhi vide its order dated October 23, 2008, Cantabil International Private Limited was merged into the company with effect from April 01, 2007, being the appointed date for the amalgamation. The order of High Court was filed with the registrar of companies on December 08, 2008. The company had allotted equity shares to the members of Cantabil International Private Limited in the ratio of 3 equity shares of face value Rs 10 each of Cantabil Retail India Limited against every 2 equity shares of face value Rs 10 each held in Cantabil International Private Limited. The company has applied for the formal order of High Court in respect of the scheme of amalgamation. It shall apply for mutation of properties of the transferor company in its name on receipt of final order from the High Court containing schedule of properties. The name of the company was subsequently changed to “Cantabil Retali India Private Limited” pursuant to a fresh certificate of incorporation dated March 05, 2009. Subsequently the company was converted into public limited company and received fresh certificate of incorporation dated August 26, 2009 in the name of Cantabil Retail India Limited.

The company has started its garments manufacturing and retailing business in 2000 and opened its first Cantabil store in September, 2000 in New Delhi. The “CANTABIL” brand with 206 exclusive retail outlets offers the complete range of formalwear, party-wear, casuals and ultracasual clothing for men, women and kids in the middle to high income group. In the last 9 years, “CANTABIL” has become a complete family wear brand with addition of women’s wear segment in 2007 and Kidswear segment in 2008. The company has launched its second brand “La FANSO” on 25th October 2008 and has 175 exclusive outlets. The “La FANSO” brand caters to men’s segment in lower to middle income group and focuses on casual, ultra casual and formal wear. The company is also retailing various accessories like ties, belts, socks, caps and handkerchief under its brands.

At present, the company has 3 in-house manufacturing / finishing units and 4 warehouses located in Delhi. It also has 3 third party dedicated units manufacturing exclusively for us. It has fabricating arrangements with 94 manufacturing units to which it outsource cutting and stitching. The company’s manufacturing and finishing facilities are sufficiently backed by facilities for product development, design, fabric testing to ensure quality apparels for its customers. The company is setting up a garment washing unit at Sonipat at a cost of Rs 2.21 crore, which is under advance stage of implementation and is slated to start operation by end of March 2010. In order to meet its growth plans and to reduce its dependence on third party fabricators, it is proposing to set up a large integrated manufacturing facility at Bahadurgarh.

The company has two chains of exclusive retail outlets under the brand name “Cantabil” and “La FANSO” which display and sell the respective brands exclusively. To enhance visibility and to ensure maximum footfalls, its stores are situated at malls and at prominent locations of the major metros, mini metros, large cities and other Tier II cities. Such metros and cities includes Delhi, Mumbai, Kolkatta, Bangalore, Hyderabad, Pune, Jaipur, Ahemdabad, Vadodra, Lucknow, Kanpur, Patna, Ranchi, Dehradun, Meerut, Ludhiana, Jalandhar, Udaipur, Agra, Ghaziabad and Gurgaon etc.

Business area of the company

The company is in the business of designing, manufacturing, branding and retailing of apparels under the brand names of “CANTABIL” and “La FANSO”. It has a network of 381 exclusive retail outlets (as of August 31, 2009) spread across India.

History

• 1989: Incorporation of Company and started the wholesale business of garment accessories
• 2000: Launched the brand “CANTABIL” and Selling business through MBO and EBO
• 2002: Resorted to the business model of EBO
• 2007: Launched womens’ wear under the brand “CANTABIL”
• 2008: Amalgamation of Cantabil International Private Limited and launched the brand ‘La FANSO’ exclusively for men and launched Kids’ wear under the brand ‘CANTABIL’
• 2009: Change in the name of our Company from Cantabil Retail India Private Limited to Cantabil Retail India Limited