Final Report On B G

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: Mr. Syed Ali Arshad Lecturer SMS-VARANASI

Submitted By: Omprakash Kumar RM/02/28 PGRM

INDUSTRIAL ANALYSIS REPORT ON

BRANDED GARMENTS: A CAMPARATIVE STUDY OF MAJOR PLAYERS IN INDIA

Submitted To: Mr. Syed Ali Arshad Lecturer SMS-VARANASI

Submitted By: Omprakash Kumar RM/02/28 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 cooperation 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, PalladumTirupur-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 brandsRaymond 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

Raymond Apparel Ltd. .

CMIE database

Registered office

Address

Street

New Hind House, N.M. Marg, Ballard Estate,

City

Mumbai

State

Maharashtra

Email address

[email protected]

Website

www.raymondindia.com

Telephone numbers

and

fax

Country code

91

Tel no.

022-66609999

Fax no.

Pincode

400001

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.HeinrichDietrich 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 the World

Total

Segment Revenue 9,339 12,165 Carrying cost of Segment Asset 12,916 2,694 Addition to Fixed Assets 721 -

21,504 15,610 721

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.

Sales & other Income Profit Before Taxation Provision for Taxation Current Tax Wealth Tax Deferred Tax Fringe Benefits Tax Profit After Taxation Short Provision for Taxation Profit for the Year Balance of Profit Brought forward Profit Available for Appropriation Appropriations Transfer to General Reserve Interim Dividend Tax on Dividend (on Interim)

(Rupees in Crores) 2006-07 2005-06 216.85 178.67 23.70 13.22 7.85 0.02 1.40 0.35 14.08

4.00 0.03 (0.21) 0.38 9.02

(0.01) 14.09

0.01 9.01

46.58

43.34

60.67

52.35

*1.50 4.18 0.59

1.00 -

Proposed Final Dividend Tax on Proposed Final Dividend Balance Carried Forward Total

0.84 0.14 *53.43 *60.67

4.18 0.59 46.58 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 [email protected] Email address www.zodiaconline.com Website Telephone numbers Country code

and

fax 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 trendsetting 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 1997 1998 1999 Provogue. 2000 2001 2002

Milestones � Acme Clothing Private Limited was incorporated on November 11, 1997 � The Company launched its brand “Provogue” � John Abraham was projected as the brand ambassador for � The Company introduced the brand “Provogue” in National Chain Stores like Piramyd, Shopper’s Stop and Lifestyle � The Company opened the first “Provogue Studio” (an exclusive brand outlet) in Lokhandwala, Andheri, Mumbai � The Company opened its second Studio Store in Chandigarh � The Company signed bollywood actor Fardeen Khan as the Brand Ambassador 51 � The Company set up its factory at Daman to manufacture apparel.

2003 2004

Hospitality became its 2005

� The Company introduced the concept of “Provogue Lounge” at High Street Phoenix, Mumbai � 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 & Private Limited (“AHHPL”) pursuant to which AHHPL subsidiary � 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 2000

IFA: Winner ‘Most Admired Product Launch’ – Provogue IFA Hall of Fame: ‘Most Admired Apparel Company in India’- Acme Clothing IFA: Hall of Fame ‘Most Popular Fashion Campaign of The Year’ Provogue IFA Hall of Fame ‘Most Admired Apparel Company in India’ – Acme Clothing IFA Hall of Fame: ‘Most Admired Brand Professional of The Year’Nikhil Chaturvedi Lycra(R) IFA: Hall of Fame ‘Most Admired Fashion Campaign of The Year’ – Provogue (for year 2002) Lycra(R) IFA Hall of Fame: ‘Most Admired Brand Professional of The Year’- Akhil Chaturvedi (for year 2002) Lycra(R) IFA: Winner ‘Most Admired Exclusive Brand Retail Chain Of The year’ – Provogue (for year 2002) Lycra(R) IFA: Winner ‘Fashion Retail Concept Of The Year’ – Provogue Lounge (for year 2003) Lycra(R) IFA: Hall of Fame ‘Most Admired Shirt Brand of The Year’ - Provogue (for year 2003) Lycra(R) IFA: Hall of Fame ‘Most Recalled Fashion Campaign Of Year’ - Provogue (for year 2003) Lycra(R) IFA: Winner ‘Most Admired Exclusive Brand Retail Chain Of The year’ – Provogue (for year 2003)

2001 2001 2001 2003 2003 2003 2004 2004 2004 The 2004

2004 2004 2004 2005 2005

IFA: Hall of Fame ‘Retailer Of The Year in Fashion’ - Provogue (for year 2003-04) Golden Scale Award for the Menswear Brand in Apparel by CMAI 2004 DFU’s inside Fashion brand award for excellence in retail performance Lycra(R) IFA Winner: ‘Most Admired Fashion Forward Brand of the year’- Provogue 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 City Maharashtra State

Email address www.provogue.net Website Telephone numbers

Country code

and

fax

91 02230620000

Tel no. 30680570 Fax no.

400053 Pincode

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 2001

2002 2003 2004 2006

Milestone * Incorporated as Vishal Retail Private Limited * Acquired the proprietorship firm Vishal Garments & The Vishal Garments * Opened first store outside Kolkata * Opened first Store in Delhi * Acquired Vishal Apparels, a manufacturing unit. * Set up a manufacturing unit in Gurgaon * 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 * 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

Total Retail Industry Growth Rate Organised Penetration Organised Retail Y-O-Y growth

2004-05 E 2005-06 P 2006-07P 2007-08 P

Rs. billion 9990 Per Cent 6.7 Rs. Billion 350 Per Cent 3.5 Per Cent

E-Estimated, P-Projected

24

10659 6.7 441 4.1

11374 6.7 556 4.9

26

26

12136 6.7 700 5.8 26

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 TierII 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 Category

Organised Retail Market size Market Share Market size

(Rs, billion)

(per sent) (Rs, billion)

Food beverage and tobacco Clothing and textile Consumer durables Jewelleries Home decor and furnishing Beauty care products Footwear Books, music and gifts Total

(per sent)

7.738 75.8 716 7 416 4.1 416 4.1 300 2.9 214 2.1 104 1 87 0.8 9,990 100

Market Share Penetration (per sent)

65 141 43 25 25 7 32 11 349

19 40 13 7 7 2 9 3

1 20 10 6 8 3 31 13

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) Clothing, textile and

2005

2002 CAGR (per cent)

fashion accessories 141 Footwear 32 Jewelleries and watches 25 Food and grocery 65 Durables 43 Books, music and gifts 11 Home decor 25 Beauty care products 7

50 20 25 20 15 5 5 n.a.

41.3 17.0 0.0 48.1 42.1 30.1 71.0

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 200607. 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 City

Pincode Delhi

State

Email address www.vishalmegamart.net Website Telephone numbers

Country code

and

fax

91 01130622002

Tel no. 011-30622008 Fax no.

110037

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 numbers

Country code

and

fax

91 11-65451320

Tel no.

Fax no.

11-23414602

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

Total Cr.)

income

Mar 2004

Mar 2005

(Rs.

Sales PAT PBT

Mar 2006 222.55

Mar 2007 256.97

180.5 173.49

176.63 175.6

186.85 185.81

202.17

255.32

7.82

3.65

12.37

23.08

16.46

6.52

2.33

7.95

14.86

10.73

300 250 To tal income (Rs. Cr.) Sa le s

200 150

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 (%) Total income

Mar 2003 21.175212

PAT

NA

Mar 2004 42.830031

Mar 2005 32.825434

Mar 2006 17.688168

Mar 2007 32.052699

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

180 160 140 120 100 80 60 40 20 0

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

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 Ltd.

Co. Mar 2003

Total income (Rs. Cr.)

Mar 2004

Mar 2005

Mar 2006

Mar 2007

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 PAT

100

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 -50

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 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 To tal income

200

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 (%) Total income

Mar 2003 NA

Mar 2004

Mar 2005

Mar 2006

Mar 2007

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 Tota l in co me

1500

P AT

1000

Net worth

500

Tota l a sse ts

0 -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 Ltd.

Retail Mar 2005

Total income (Rs. Cr.)

147.12

Mar 2006 289.1

Mar 2007 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 Total income (Rs. Cr.)

23.57

Mar 2004 38.01

Mar 2006 158.38

Mar 2007 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

450 400 350 300 250 200 150 100 50 0

Total income Sales PAT PBT

Interpretation 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

400 300

Net worth 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

123.25

166.64

165.98

179.05

216.99

NA

NA 147.12

289.1

608.24

158.38

405.02

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

NA 23.57

38.01

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

Raymond Apparel Ltd. Provogue (India) Ltd.

Mar 2004

Mar 2005

Mar 2006

Mar 2007

173.49

175.6

185.81

202.17

255.32

40.78

27.39

115.02

156.41

238.67

122.12

164.31

161.48

173.66

210.43

NA

NA 147.03

288.93

603.77

158.34

402.4

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

NA 23.55

37.83

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

Raymond Apparel Ltd. Provogue (India) Ltd.

Mar 2004

Mar 2005

Mar 2006

Mar 2007

7.82

3.65

12.37

23.08

16.46

2.98

4.61

9.27

14.09

23.2

4.82

13

11.37

13.2

23.71

NA

NA 4.97

18.61

39.27

20.88

52.07

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

NA 0.58

1.2

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

Raymond Apparel Ltd. Provogue (India) Ltd.

Mar 2004

Mar 2005

Mar 2006

Mar 2007

6.52

2.33

7.95

14.86

10.73

1.88

4.4

7.22

11.93

19.6

3.18

9.03

7.44

9

14.09

NA

NA 3.01

12.39

25.07

13.62

33.95

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

NA 0.47

0.9

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 5 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

Raymond Apparel Ltd. Provogue (India) Ltd.

Mar 2003

Mar 2004

Mar 2005

Mar 2006

Mar 2007

17.3831046

2.14404432

5.63324464

19.2785936

15.4661874

NA

127.347555

86.6871563

36.3226757

52.9523931

68.997669

35.2048682

0.39606337

7.8744427

21.1896118

NA

NA

NA

96.5062534

110.390868

NA

61.264319

NA

104.127367

155.726733

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

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 Raymond Apparel Ltd. Provogue (India) Ltd.

Mar 2003

Mar 2004

Mar 2005

Mar 2006

Mar 2007

492.727273

-64.2638037

241.201717

86.918239

-27.7927322

2091.03667

-17.9545455

65.2354571

64.2917016

183.962264

-17.6079734

20.9677419

56.5555556

311.627907

102.340597

289.015852

149.265786

Zodiac Clothing Co. Ltd. -33.1932773

Vishal Retail Ltd. NA

Koutons Retail India Ltd. 91.4893617

Comparative Analysis of Growth (%) in PAT 2500 2000 Raymond Apparel Ltd.

1500

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 Raymond Apparel Ltd. Provogue (India) Ltd.

Mar 2003

Mar 2004

Mar 2005

Mar 2006

Mar 2007

17.3054588

6.46039604

19.1118345

93.6170213

10.4950096

333.352511

305.514019

150.702927

133.949255

12.1175523

59.2100539

4.43166441

8.6707699

140.251157

74.3603851

117.66789

689.42261

Zodiac Clothing Co. Ltd. 9.81432361

Vishal Retail Ltd. Koutons Retail India Ltd. 26.4534884

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 Raymond Apparel Ltd. Provogue (India) Ltd.

Mar 2003

Mar 2004

Mar 2005

Mar 2006

Mar 2007

-8.38724949

-22.0652829

0.05525472

65.4959134

52.3424987

10.4998829

131.726513

103.608576

91.7587573

8.69084476

41.363174

9.73661485

10.8138239

147.420758

175.810098

141.494845

272.409231

Zodiac Clothing Co. Ltd. 51.8213866

Vishal Retail Ltd. Koutons Retail India Ltd. 24.4266667

Comparative Analysis of Growth (%) in Total Assets 300 250 200

Raymond Apparel Ltd. Provogue (India) Ltd.

150

Zodiac Clothing Co. Ltd. 100

Vishal Retail Ltd. Koutons Retail India Ltd.

50 0 -50

Mar 2003

Mar 2004

Mar 2005

Mar 2006

Mar 2007

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 20032007. 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 20032007.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) Total income Sales Income from financial services

12 mths

12 mths

12 mths

12 mths

12 mths

12 mths

153.77 152.02 1.1

180.5 173.49 6.7

176.63 175.6 0.6

186.58 185.81 0.54

222.55 202.17 1.08

256.97 255.32 1.14

Total expenses Raw material expenses Power, fuel & water charges Compensation to employees Indirect taxes Selling & distribution expenses Other operational exp. of indl. enterprises Other oper. exp. of non-fin. service enterprises

169.81 46.74 1.43 9.21 16.39 27.73 0.69 0

169.68 54.07 1.55 11.85 14.1 31.22 0.61 0

166.4 53.18 1.78 11.05 12.77 37.75 0.73 0

172.34 61.85 1.65 11.02 2.55 38.96 0.83 0

221.31 88.85 1.85 14.6 0 40.85 1.08 0

251.91 73.85 2.38 17.95 0 50.91 1.43 0

5.27 2.71 1.73 1.1

12.93 9.01 7.82 6.52

7.48 5.06 3.65 2.33

14.93 13.73 12.37 7.95

26.23 25.17 23.08 14.86

24.04 21.01 16.46 10.73

Net worth Paid up equity capital (net of forfeited capital) Reserves & surplus

34.44 2 32.44

40.95 2 38.95

43.28 2 41.28

51.23 2 49.23

99.19 2 62.89

109.6 2 73.3

Total borrowings Current liabilities & provisions

56.87 34.36

41.33 31.8

19.99 26.14

9.86 27.86

18.83 29.8

82.35 35.06

Total assets Gross fixed assets Net fixed assets Investments Current assets Loans & advances

126.74 15.42 9.16 15.81 101.38 0.39

116.11 18.02 10.82 0.56 101.66 1.6

90.49 18.79 10.58 0.55 78.14 0.95

90.54 20.25 10.72 0.55 77.17 2.1

149.84 32.75 21.49 34.84 93.06 0

228.27 53.31 37.99 63.48 126.13 0.01

Total income

7.58413209

5.63324464

19.2785936

15.4661874

Total expenses

3.56971154

28.4147615

99.5989305

75.6865372

PAT Net worth

19.7616193 68.4431138 86.7310012 0.34965035

17.3831046 0.07655615

241.201717 19.1118345

86.918239 93.6170213

13.8267588 8.34921845 27.7927322 10.4950096

Total assets

40.0906378

0.05525472

65.4959134

52.3424987

PBDITA PBDTA PBT PAT

Growth (%)

PBDITA

Profitability ratios (%)

145.351044 492.727273 17.3054588 8.38724949

2.14404432 1.93305045 42.1500387 64.2638037 6.46039604 22.0652829

PBDITA Net of P&E/Total income net of P&E PAT Net of P&E/Total income net of P&E PAT Net of P&E/Avg. net worth PAT/Avg. net worth PAT Net of P&E/Avg. total assets PAT/Avg. total assets

3.28295987 0.56670141 2.53054101 3.19953461 0.80106809 1.01284471

7.12741784 3.57479355 17.1110227 17.2967237 5.31192094 5.36956969

4.13714933 1.21847549 5.10506945 5.53247062 2.08131655 2.25556631

7.97233541 4.23010937 16.6966459 16.8236165 8.71678727 8.78307463

7.55918136 2.19749128 6.19598458 19.7580109 3.87719444 12.3637574

9.5197289 4.33529389 10.6614301 10.27827 5.88717569 5.67559705

Liquidity ratios (times) Current ratio Debt to equity ratio Interest cover Debtors (days) Creditors (days)

1.69730454 1.65127758 1.5859375 74.4189909 70.7653061

3.15322581 1.0230198 2.97704082 74.971324 65.6632716

1.90585366 0.46477563 2.4338843 63.6879271 53.3454557

2.17319065 0.19246535 11.2583333 51.7513858 59.6726028

2.05930516 0.18983769 13.1509434 44.7380917 47.6684951

1.92977356 0.75136861 6.56435644 38.0982688 50.2824123

Efficiency ratios (times) Total income / Avg. total assets Total income / Compensation to employees

1.41586483 16.6959826

1.48988857 15.2320675

1.71668772 15.9846154

2.06439478 16.9310345

1.85165155 15.2431507

1.35923409 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) Total income Sales Income from financial services

12 mths

12 mths

12 mths

12 mths

12 mths

12 mths

72.93 72.06 0.8

123.25 122.12 0.65

166.64 164.31 1.48

165.98 161.48 0.84

179.05 173.66 1.53

216.99 210.43 2.58

Total expenses Raw material expenses Power, fuel & water charges Compensation to employees Indirect taxes Selling & distribution expenses Other operational exp. of indl. enterprises Other oper. exp. of non-fin. service enterprises

67.6 34.38 0.74 8.52 0 7.44 0 0

124.25 41.63 1.4 13.22 3.71 17.56 0 0

156.53 57.69 1.97 18.42 4.26 25.15 0 0

156.9 59.13 2.13 23.37 1.28 25.18 0 0

174.75 61.46 2.61 26.07 0.46 25.19 0 0

204.88 69.25 3.03 30.76 1.05 29.11 0 0

PBDITA PBDTA

7.14 6.36

6.54 5.58

14.61 14.05

13.64 12.92

16.79 15.5

28.51 26.93

PBT PAT

5.77 4.76

4.82 3.18

13 9.03

11.37 7.44

13.2 9

23.71 14.09

Net worth Paid up equity capital (net of forfeited capital) Reserves & surplus

45.4 3.39 42.01

49.77 3.39 46.34

55.78 3.43 52.35

88.69 4.18 84.51

92.61 8.36 84.25

100.64 8.36 92.28

Total borrowings Current liabilities & provisions

3.05 9.71

14.73 24.63

16.33 23.95

15.69 32.4

22.63 34.49

29.24 35.9

Total assets Gross fixed assets Net fixed assets Investments Current assets Loans & advances

59.57 11.9 8.94 27.82 18.7 3.64

90.44 18.4 14.46 17.11 58.14 0.64

98.3 31.71 24.62 17.1 56.06 0

138.96 36.52 27.42 44.71 61.48 4.39

152.49 45.19 33.83 27.58 69.87 19.5

168.98 52.95 38.08 27.18 82.18 20.8

6.59163987 10.7289107 26.9191402 37.6146789 4.98955674 1.24065262

68.997669 83.8017751 8.40336134 33.1932773 9.81432361 51.8213866

35.2048682 25.9798793

7.8744427 11.376673

21.1896118 17.241774

23.0938416

69.8034544

183.962264 12.1175523 8.69084476

0.39606337 0.23637641 6.63928816 17.6079734 59.2100539 41.363174

20.9677419 4.43166441 9.73661485

56.5555556 8.6707699 10.8138239

Profitability ratios (%) PBDITA Net of P&E/Total income net of P&E PAT Net of P&E/Total income net of P&E PAT Net of P&E/Avg. net worth PAT/Avg. net worth PAT Net of P&E/Avg. total assets PAT/Avg. total assets

10.2250892 6.95855065 11.4279274 10.7291784 8.56346592 8.0398615

5.26016722 2.53267311 6.55668803 6.68277819 4.15972269 4.23971735

8.94113403 5.58595394 17.6030317 17.1103742 9.84423016 9.56871887

8.03609278 4.2814752 9.78749913 10.2997162 5.95970665 6.27160078

9.01275496 4.63561274 9.10093767 9.92829564 5.66134843 6.17601647

13.2309537 6.58088913 14.7684347 14.5821475 8.87796684 8.76598127

Liquidity ratios (times) Current ratio

1.46551724

1.48429921

1.3917577

1.27843627

1.25665468

1.31888942

Growth (%) Total income Total expenses PBDITA PAT Net worth Total assets

123.394495

Debt to equity ratio Interest cover Debtors (days) Creditors (days) Efficiency ratios (times) Total income / Avg. total assets Total income / Compensation to employees

0.06741821 8.79487179 31.7082986 35.798961

0.29649758 5.95833333 32.9073862 58.6093409

0.29317774 24.6785714 43.1509038 51.3431525

0.17692828 16.2777778 42.4831248 58.7944343

0.24435806 10.6511628 33.5343487 54.6234117

0.29054054 16.1202532 33.9623628 50.1633086

1.23599695 8.55985915

1.64596688 9.32299546

1.76740733 9.04668838

1.39967112 7.10226786

1.22872632 6.86804756

1.349986 7.05429129

Financials at a Glance of Provogue (India) Ltd. Executive Summary

(CMIE Database)

Provogue (India) Ltd. Rs. Crore (Non-Annualised) -

Sep 2003 12 mths

Mar 2004 6 mths

Mar 2005 12 mths

Mar 2006 12 mths

Mar 2007 12 mths

Total income Sales Income from financial services

41 40.78 0.05

30.91 27.39 0.03

115.41 115.02 0.26

157.33 156.41 0.84

240.64 238.67 1.3

Total expenses Raw material expenses Power, fuel & water charges Compensation to employees Indirect taxes Selling & distribution expenses Other operational exp. of indl. enterprises Other oper. exp. of non-fin. service enterprises

44.6 24.55 0.15 1.24 2.64 4.6 0 0

31.39 17.62 0.13 1.05 1.78 6.29 0 0

115.3 75.39 0.26 2.51 2.27 15.37 0 0

166.22 110.17 1.07 5.27 2.27 20.24 0 0

238.98 153.73 1.99 8.67 4.15 28.77 0 0

8.42 7.4 2.98 1.88

6.24 5.19 4.61 4.4

12.88 11.07 9.27 7.22

20.05 17.57 14.09 11.93

32.61 28.07 23.2 19.6

Net worth Paid up equity capital (net of forfeited capital) Reserves & surplus

13.63 2.5 11.13

10.71 2.5 7.06

43.74 12.15 31.59

108.88 16.2 92.68

254.49 19.1 235.39

Total borrowings Current liabilities & provisions

11.18 10.7

20.22 9.46

33.02 17.07

53.36 29.38

63.11 50.27

Total assets Gross fixed assets Net fixed assets Investments Current assets Loans & advances

38.68 8.41 7.26 0 22.93 0

40.66 10.89 9.36 0 31.29 0

94.22 22.05 18.87 0.02 74.84 0.12

191.84 33.43 27.1 22.07 138.91 3.6

367.87 50.28 39.47 120.24 197.77 10.12

Growth (%) Total income Total expenses PBDITA

127.347555 98.1403406 119.687318

36.3226757 44.1630529 55.6677019

52.9523931 43.7733125 62.6433915

PAT Net worth Total assets

2091.03667 333.352511 10.4998829

86.6871563 83.6572157 3.20512821 17.9545455 305.514019 131.726513

65.2354571 150.702927 103.608576

64.2917016 133.949255 91.7587573

20.6399609 4.66536395 0 0

10.1348888 3.42690485 7.72391126 36.1544782 2.36954878 11.0915049

11.246859 6.34260463 26.8870523 26.5197429 10.8540925 10.7058126

12.9807387 7.8189562 16.1184642 15.6335998 8.59959449 8.3409075

13.622008 8.21559176 10.8814707 10.7879021 7.06437262 7.00362688

1.30358158 2.17509728 3.95098039

1.61872737 1.88971963 2.0952381 65.9638554 109.810903

2.00751073 0.76100484 6.17679558 40.4603547 45.3814651

2.34486833 0.49053135 6.83064516 61.6539863 51.4343583

2.0315357 0.24798617 6.14757709 63.0610257 61.5531098

0.87267081

1.71587868

1.10171212

0.86002752

PBDITA PBDTA PBT PAT

Profitability ratios (%) PBDITA Net of P&E/Total income net of P&E PAT Net of P&E/Total income net of P&E PAT Net of P&E/Avg. net worth PAT/Avg. net worth PAT Net of P&E/Avg. total assets PAT/Avg. total assets Liquidity ratios (times) Current ratio Debt to equity ratio Interest cover Debtors (days) Creditors (days) Efficiency ratios (times) Total income / Avg. total assets

97.4683043

Total income / Compensation to employees

33.0645161

29.4380952

45.9800797

29.8538899

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

159.48

317.41

749.38

Total expenses

27.7554787

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

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

Growth (%)

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

0.08211331

0.06347616

26.0731554

13.1679878

2.58644599

2.03275182

19.1203704

20.2679107

Debtors (days) Creditors (days)

23.8183422

Efficiency ratios (times) Total income / Avg. total assets Total income / Compensation to employees

20.6339411

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

104.12736 7 123.20914 5 195.50625 289.01585 2

155.72673 3 201.69270 2 172.70161 3 149.26578 6

117.66789 141.49484 5

689.42261 272.40923 1

7.4717179 7 2.3677979 5 23.047375 2 23.047375 2 4.2775665 4 4.2775665 4

15.686769 8 8.6264603 7

16.664189 1 8.3197066 5 36.505952 1 36.908191 6

1.3836065 6 2.2620689 7 1.9448818 9

1.3601648 9 2.0320232 9 8.1643835 6

Growth (%) Total income

61.264319 48.937756 2 98.601398 6 91.489361 7 26.453488 4 24.426666 7

Total expenses PBDITA PAT Net worth Total assets Profitability ratios (%)

PAT Net of P&E/Total income net of P&E

6.0670343 7 1.9940602 5

PAT Net of P&E/Avg. net worth

0

PAT/Avg. net worth

0

PBDITA Net of P&E/Total income net of P&E

PAT Net of P&E/Avg. total assets PAT/Avg. total assets

0 0

10.44869 10.563818 5

Liquidity ratios (times) Current ratio Debt to equity ratio Interest cover Debtors (days)

1.3929159 8 1.7848837 2 1.9666666 7

45.106397

1.7500473 0.9995083 5.5350877 2 13.029883 2

Creditors (days)

130.19470 4

85.105624 5

31.851351 4

1.8074179 7 29.465116 3

134.58035 2

105.04843 2

29.939508 5

1.2615480 5 38.869481 8

Efficiency ratios (times) Total income / Avg. total assets Total income / Compensation to employees