18.8 C
New York

Vedant Fashions to expand in domestic, international markets



Shobha Roy | Kolkata, May 10 | Updated on: May 10, 2022

The parent company of Manyavar brand is also ramping up women’s ethnic wear brand Mohey

Vedant Fashions (VFL), which owns the ethnic wear brand Manyavar, is looking to enhance focus on the children’s segment and ramp up its presence both in domestic and international markets to drive growth. Plans are afoot to strengthen its women’s wedding and celebration wear under the brand Mohey by setting up standalone stores.

In its recent investor presentation for Q4-FY22, which has been uploaded on stock exchanges, the company said it will focus on opportunities in adjacent product categories within Indian wedding and celebration wear such as apparels and accessories and establish leadership position in women’s Indian wedding and celebration wear market like ‘Manyavar’.

As on FY20, the ethnic wear and celebration wear market in India is estimated to be close to ₹2,82,000 crore and likely to grow at a CAGR of around six per cent to touch ₹3,77,500 crore by FY25. The share of branded products in the total market, which was around 7 per cent in FY20 is likely to increase to 12 per cent by FY25, the company said highlighting the potential in the segment.

Large and growing Indian wedding and celebration wear market driven by an increased spending on such apparel would act as key drivers for growth of the brands. Increased penetration of branded players in Tier II and Tier III markets would further aid growth.

The women’s Indian wedding and celebration wear market is estimated to be close to ₹73,500 crore (as on FY20) and the penetration of branded players is around 15-20 per cent. The company would aim to establish a leadership position in women’s ethnic wear market.

The company plans to establish standalone ‘Mohey’ brand stores and increase the depth of product mix to an additional array of products, including accessories and cross-sell with ‘Manyavar’ brand as coordinated jodi, leveraging Manyavar’s leadership position.

Increasing expansion

The company will look at retail expansion both within and outside India. VFL operates a multi-channel retail distribution network across India and sells products through franchise-owned exclusive brand outlets (EBOs), multi-brand outlets (MBOs), large format stores (LFSs) and online platforms, including its own website.

“Will look at expansion in new geographies, increasing penetration in existing markets across existing cities and expand in new cities and towns in existing geographies,” it said in its investor presentation, and is planing to double EBO retail space footprint to 2.2 million sq ft from the current 1.3 million sq ft in the next few years. The company currently has 583 EBOs across 223 cities and towns in India and 12 EBOs overseas in USA, Canada and UAE.

The company will also lay emphasis on omni-channel strategy wherein customers have flexibility to access products through offline and online channels.

For the quarter ended March 31, 2022, the company witnessed 59 per cent growth in standalone revenue from operations at ₹289 crore, as compared with ₹182 crore in the same period last year. Its standalone net profit increased by 98 per cent at ₹87 crore, as against ₹44 crore same period last year.

Published on May 10, 2022

You May Also Like

Recommended for you

Related articles

Recent articles