By Phillip Capital
Suditi Industries (SIL) started as a fabrics processing plant and has gradually entered into value-added segments such as printing, finishing and garmenting. The company has retail presence through two own brands: Riot and Indianink along with licentiate rights with global football clubs and celebrities Yuvraj Singh and Anushka Sharma. SIL is targeting growth through franchisee and e-commerce with focus on design and brand development. Suditi would be one of the major beneficiaries of growing organised retail and e-commerce in India with its strong brand and product portfolio. Following are the key takeaways from the management meet. The company has moved from manufacturing to brand heavy business with focus on design team and brand development. Suditi launched ‘RIOT’ in 2010 as a casual fashion brand for the youth that offers contemporary clothing. RIOT’s products include denims, comfortable bottoms, cool jackets and stylish shirts for men and skirts, dresses, cardigans and tunics for women.
It forayed into women’s ethnic and fusion wear in 2015 under its retail brand ‘Indianink’. Management expects revenue growth of 20-25% in Indianink while growth in RIOT should improve with the focused marking strategy. The company has not done any major capital expenditure in the past and is focusing on retail expansion through asset light mode. SIL has discontinued company-owned exclusive business outlets (EBO) for RIOT and has 12 EBOs on franchise model for Indianink. The focus is now on large format stores (LFS) and multi-brand outlets (MBO) and online platform along with more licentiate brands.
Celebrity brands and licentiate agreement help the company penetrate into market faster with lower investment. The maintenance capex will be managed through internal accruals. The company is planning to reduce working capital through sourcing larger requirement at fabric level compared to current investment from yarn stage. The company has processing and garmenting unit at Navi Mumbai focused in knitted garments for casual wear and sportswear. It supply garments to Future Group, Mandhana, Raymond, Pantaloons etc. The promoter expertise of over two decades helps the company in designing products and managing distribution effectively.