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Arafa focuses on luxury sector
Dec '10
Arafa, the Egyptian clothing manufacturer dominates 12 percent of the suit retail market of United Kingdom by means of the Baird Group, in which it has more than 50 percent of the equity capital.

The company has employed around 8,000 workers and has moved a long way from its initial status as a fabric retailer in the region at the start of the last century.

The company had initiated an extraordinary business model, starting first from selling and then producing textiles and later, ready-to-wear garments. Finally, it had entered the retail business through acquisitions.

The group has registered a gross profit of US $44 million in the first six months of the current year. It operates in three sectors – formal, casual and luxury. It even produces suits for leading Italian brands like Pal Zileri, Valentino and Cerruti. It also owns 35 percent equity capital of Zileri.

The retail policy of the company, currently, emphasizes on luxury segment of the market.

The company was incorporated under the public sector in 2006 and had been under pressure owing to stock liquidity.

Majority of its shareholders are institutional and the quantum traded has also been low, showing low share prices after the global recession. But now, it has been able to enhance its operations by allocating its dividends.

The company is trying to penetrate the market as distributor and retailer in the luxury clothing sector in China, in the long-run. However, it is only in its initial stage, at present.

Fibre2fashion News Desk - India

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