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Indian Terrain Fashion (ITFL), the demerged entity of Chennai-based Celebrity Fashions, on Friday received an encouraging response on its debut on the stock exchanges. Opening at Rs 40 a share on BSE, it rose to a high of Rs 93 before closing at Rs 85.
Post-demerger, Celebrity Fashions had issued 55.81 lakh shares to investors in the ratio of two shares of ITFL for every seven shares of Celebrity Fashions.
Mr Venky Rajgopal, Managing Director, ITFL, said given the aggressive growth plan, the demerger would enable the company to raise funds at an appropriate time. “Besides, it lead to better benchmarking and help the company to focus on delivering better value to stakeholders,” he added.
Product range
Launched in 2000, Indian Terrain is a domestic focussed ready-to-wear men's garment brand of Celebrity Fashions, which caters largely to export markets.
Started with a product offering of shirts and trousers, its expanded product range now include shirts, trousers, t-shirts, shorts, sweaters, knits and jackets. Mr Charath Narsimhan, Chief Executive Officer, Celebrity Fashions, said the company has proposed to increase its branded outlets from 70 to 100 by end of next fiscal.
The company is close to signing agreement for opening five branded stores in Mumbai, Lucknow and down South, he added.
The brand is also retailed in more than 450 multi-brand outlets, apart from being sold in major large format retailers such as Lifestyle, Shoppers Stop, Westside and Central.
The company expects to achieve revenue of Rs 120 crore this fiscal and has set target of Rs 150 crore for next fiscal. It has been investing 10 per cent of its turnover on advertising and brand promotion activities through the years.
On the rising input cost and consequent increase in garment prices, Mr Narsimhan said, the company will be effecting a price hike of 15 to 18 per cent across product range this summer, and will wait for the customers response to gauge the impact.
“We have been very conservative on the price hike and I am confident that the nominal price hike will not impact demand for our offerings,” he said.
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