India : Cantabil IPO to fund 150 new outlets

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Cantabil IPO to fund 150 new outlets

19
May '10

With the funds that would be generated from its upcoming initial public offering (IPO), New Delhi-based garment manufacturer and retailer, Cantabil announced that, it will launch about 150 outlets this fiscal as a part of its expansion plan. It will also open a new production unit in Bahadurgarh, Haryana.

As per Cantabil Retail India Managing Director, Vijay Bansal, the company intends to open about 150 new outlets by March 2011. These will be a combination of company-owned and franchise operated stores and an investment of Rs 250 million will be made for the same.

This investment will be funded by the company's IPO that is likely to hit the market by June. Currently, the company has about 381 outlets actors the country, which comprises of 206 family-wear brand 'Cantabil' and 175 exclusive men's wear stores, 'La Fanso'.

The company wants to maintain both its impetus post-IPO and wants to also sustain its growth agenda. Since five years, even during the 2008-09 economic meltdown the company developed at a yearly average of 75 percent. Bansal expects the company to maintain the impetus and take advantage of the reviving retail market.

In 2009-10, the company registered a turnover of Rs 2.02 billion. Also, the company though expects an increase in their volumes post the IPO, they dread that it might not be able to match the high growth rate of previous years but yet will witness a 35-40 percent yearly growth.

Fibre2Fashion News Desk - India

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