Indian Terrain to list on March 11; plans expansion via franchising

Mar 10, 2011

Indian Terrain Fashions Ltd, which markets the eponymous brand of apparel, subsequent to its demerger from its parent company, Celebrity Fashions Ltd, will be listed on the BSE and NSE this Friday, March 11. Meanwhile, the company is also planning to expand its retail operations via franchise model.

The demerger of Indian Terrain from Celebrity took effect on April 1, 2010, and now that the process of shareholder approval and legal formalities are over, it is ready to be listed.

V Rajgopal, chairman of the company, said investors were keen to invest in a good brand story and Indian Terrain, a 10-year-old brand, has the potential to emerge among the top lifestyle and ‘sportswear' brands in the country. “We are, perhaps, the only sportswear brand in the men's apparel space to have a strong and committed supply chain linkage because of the parent company, Celebrity,” he explained. Sportswear as a category is not actual sports clothing, but office and casual wear which is defined by the fabric, the cuts and the washes the garments go through, he added.

The last four quarters have seen strong growth in sales for Indian Terrain, he said. The current year would witness a growth of a little over 50 per cent, he added. The company expects to end this FY with net revenues of Rs 120 crore, with a PAT of Rs 8.5 crore, up from Rs 80.15 crore in revenues the previous year. On an annualised basis for FY 2011, the EPS works out to Rs 15. Shareholders of Celebrity were given two shares of Indian Terrain for seven shares of Celebrity.

Rajgopal said the strong performance of its knitwear range helped its revenue growth.

Soon Indian Terrain, which has roped in Bollywood star Abhay Deol as its brand ambassador, expects to launch other accessories such as bags, belts, socks, and a premium denim range. For the next FY, he expects the company to target sales of Rs 150 crore and an EBITDA of 10 per cent.

Amitabh Suri, who will be the COO of Indian Terrain Fashions Ltd, said the company would open 30 more stores in the coming year, majority of them on a franchise basis.

At present, it has 71 exclusive brand outlets. Besides a presence in major multi-brand chains such as Lifestyle, Shoppers Stop, Central, and recently Westside, it has a shop-in-shop in Singapore's well-known Mustafa mall.