Cricketer Virat Kohli is not only scoring big on the field, but his karisma is also rubbing off on the performance of Vedant Fashions, whose brand the cricketer endorses.
Cricketer Virat Kohli is not only scoring big on the field, but his karisma is also rubbing off on the performance of Vedant Fashions, whose brand the cricketer endorses. The retailer posted a profit of more than Rs 100 crore in FY17. Vedant Fashions saw its profit rise 23.4% to Rs 111.30 crore in FY17, according to a filings with the Registrar of Companies (RoC). Net revenue grew 21% to Rs 610.24 crore compared to a year ago. The company has two wholly owned subsidiaries – Mohey Fashions and Manyavar Creations. While Vedant Fashions reported a large profit, Mohey Fashions, which launched operations in 2016, posted a loss of Rs 95,366 in FY17. Founded by Ravi Modi in 1999, the Manyavar brand of garments has 450 stores spread across 170 locations in India, Bangladesh, the UAE, Nepal and the US. It has 100 flagship stores and 12 international stores. The stores are a mix of company- and franchisee-owned. Vedant Fashions is primarily engaged in the manufacturing and trading of ready-made garments like ethnic and party wears for males and females under the brand name Manyavar and Mohey.
The company is in the process of expanding more in foreign countries and will increase its business through exports in various parts of the world. The company is also evaluating inorganic growth and the board expects to sustain or even outdo the current growth rate in the next financial year, the filing said. Experts said despite the foreign Western wear brands like Zara and H&M entering the country, the demand for ethnic wear continues to remain strong. According to Deloitte, the total ethnic wear market in India is around Rs 70,000 crore, 70% of which is dominated by unorganised players. Rajat Wahi, partner, Deloitte, said, “Vedant Fashions, which roped in cricketer Virat Kohli and Bollywood actor Anushka Sharma, was very aggressive on ads, and this really helped it drive sales.
Apart from this, the branded ethnic wear demand is growing on the back of weddings, festive season and also demand from working women, who are looking at comfort wear to work. Brands like Vedant Fashions and Fabindia Overseas have bridged the gap for branded ethnic wear in the country.” Manyavar’s rise is comparable to that of another Indian ethnic wear players like Fabindia Overseas. Founded in 1960 by John Bissell, it was one of the early organised private sector retailers to link India’s cottage industry to a global audience.
Fabindia reported a gross revenue of Rs 1,037 crore in FY17, up 13.8% from a year ago. Its net profit surged 327% to Rs 97.2 crore. Fabindia sells ethnic wear for men, women and kids. Apart from apparel it also sells furniture, home decor, organic personal care and food items. In FY17, the company opened 17 new stores, relocated 14 stores and closed six stores. Total stores at the end of March 2017 rose to 240, compared to 211 in the previous year. The company has 245 stores in 94 cities across India. It also has 11 stores across countries such as Italy, Singapore, Malaysia, Nepal, Qatar, Mauritius, USA and UAE.