Readymade garment manufacturer and owner of Indian Terrain brand, Celebrity Fashions Ltd, has decided to restructure its operations ? it will spin off its various divisions into separate entities and may even hive off some of them in the future depending on the market conditions.
The company has roped in consultancy firm PricewaterhouseCoopers, Bangalore, and SBI Capital Markets to prepare a detailed report on the restructuring process, including advising the firm on hiving off of each of the division into separate entities and evaluate the possibilities of listing in future, S Surya Narayanan, executive director and CFO, Celebrity Fashions, told FE. “We expect to receive the report in the next six to eight weeks,” he added.
He said, “Tough market conditions and increasing competition in the US and elsewhere have affected our margins. We want to ensure that each of our divisions get due focus by making them separate entities.”
“We have no plans to dilute our stake or raise further funds for the company. Indian Terrain is doing well and the retail arm is expected to do a business of over Rs 80 crore in the current fiscal,” Narayanan said.
A dedicated managerial, technical and marketing resources team would be provided to take care of risks and opportunities in both domestic and overseas markets. The move would also help in creating different product/branding for both the markets apart from creating enterprise value for each of the entities, he pointed out.
On exports, Narayanan said, “We have orders worth Rs 100 crore in hand and continue to look at expanding our customer base in the US.?