CHAPTER III

COMPANY PROFILE

3.1 INDUSTRY PROFILE

The apparel industry in India is one of the most flourishing industries among the other
industries. The domestic apparel industry includes five segments which are the kid’s
apparels, the men’s apparels, the women’s apparels, uniforms and unisex apparels. In
the women’s wear category, the western wears has witnessed a huge demand in the past
few years. Uniforms are among the most demanded products in the men’s segment. This
industry is a capital intensive industry which requires all types of labourers such as
skilled, semi-skilled and unskilled labourers.

Due to recession and slow down of the economy in the previous year, there has been a
substantial decrease in the production and sales of apparels in the country. There are
various institutes that train manpower for the manufacturing process of apparels. The
industry requires skilled labour force for the production of apparels. Unfortunately, it is
quite difficult to find skilled labour force in the country for the apparel industries. The
government has taken various steps to improve the existing condition of the apparel
industry.

The size of India’s textile market as of July 2017 was around US$ 150 billion, which is
expected to touch US$ 250 billion market by 2019, growing at a CAGR of 13.58 per
cent between 2009-2019.
  Apparel industry consists of

1. Textile Industry

The textile industry is primarily concerned with the design, production

and distribution of yarn, cloth and clothing. The raw material may be natural or
synthetic using products of the chemical industry.

2. Clothing Industry

Clothing industry or garment industry summarizes the types of trade and

industry along the production and life chain of clothing and garments, starting with the
textile industry (producers of cotton, wool, fur, and synthetic fibre) via fashion industry
to fashion retailers up to trade with second-hand clothes and textile recycling. The
producing sectors build upon a wealth of clothing technology some of which, like the
loom, the cotton gin, and the sewing machine heralded industrialization not only of the
previous textile manufacturing practices.

3. Fashion Industry

Fashion industry is a multibillion-dollar global enterprise devoted to the

business of making and selling clothes.

3.2 COMPANY PROFILE

3.2.1 History of the company

Brand Factory is a chain of retail stores operated by Future Group. Launched in

September 2006, it has 50 outlets across 22 cities in India as of 2017. It is India's largest
discount retail chain and offers a wide range of apparel brands in different categories for
men, women, infants, accessories, cosmetics, footwear, sportswear and luggage. The
retail chain has plans to expand its number of outlets to 100 by 2018.
3.2.2 Vision and Mission of the company

VISION:

To be the leading lifestyle fashion company in India by creating exceptional

brands and shopping experiences that will bring alive the Indian idiom of fashion.

MISSION:

We at Brand Factory Fashions aim to create a globally recognized fashion organization

here in India by bringing alive the Indian idiom of fashion. We thus strive to:

1) Be the most preferred fashion destination of India

2) Create the most preferred portfolio of fashion brands

3) Be as the most innovative, efficient, and profitable retailer

4) Be the preferred employer in the fashion space

5) Be the trendsetter in Indian fashion through superior understanding of the culture,

style code, passion and aspirations of Indian consumers

6) Create happiness for customers, colleagues, business partners and every stakeholder
3.2.3 Organisational structure
3.2.4Products Offered By the Company

 Brand factory is a subsidiary of Future Lifestyle Fashion whose main aim is to

provide their customers with a variety of apparels, updating with the new trends
in the fashion from all around the world. It offers a range of leading national and
international fashion brands in apparels, sportswear and accessories at a great
price. It is a one stop shop for the shopping needs of the complete family. Some
of the products offered by this company are as follows:
 Sportswear
Sportswear or active wear is clothing, including footwear, worn for sport or
physical exercise. Sport-specific clothing is worn for most sports and physical
exercise, for practical, comfort or safety reasons.
o Sportswear brands available in brand factory are Adidas, Nike, Reebok,
U.S. polo Assn. and many others
 Apparels
Apparels are a collective term for items worn on the body. Clothing can be made
of textiles, animal skin, or other thin sheets of materials put together. The
wearing of clothing is mostly restricted to human beings and is a feature of all
human societies. The amount and type of clothing worn depend on body type,
social, and geographic considerations. Some clothing can be gender-specific.
o Apparels brand offered by brand factory are Lee’s, Arrow, Wrangler ,
Pepe jeans and many others
 Accessories
A fashion accessory is an item used to contribute, in a secondary manner, to the
wearer's outfit, often used to complete an outfit and chosen to specifically
complement the wearer's look.
o Examples: Belts, Wallets, Socks, Ties, Handkerchief and many others
 Handbags
A handbag is a handled medium-to-large bag used to carry personal items.
o Examples: Lavie, Caprese
 Backpacks
A backpack is, in its simplest form, a cloth sack carried on one's back and
secured with two straps that go over the shoulders, but there can be variations to
this basic design.
 o Examples: Lavie, Fastrack, Wrangler and many others
 Some of the national and international brands offered by Brand Factory are as
follows:
INDIAN BRANDS
 Allen Solly
 Peter England
 Louis Philippe
 Provogue
 Indigo Nation
 Duke

FOREIGN BRANDS
 Arrow
 UMM
 Converse
 Adidas
 Buffalo
 Ginn & Jony
 Lee Copper
 DJ&C
 Calvin Kelvin
 Rig
 Forever 21
3.2.5 FINANCIAL GROWTH AND PERFORMANCE

Jun '18 Mar '18 Dec '17

Particulars
In crores
Net Sales/Income from operations 1,267.66 976.85 1,188.97
Other Operating Income -- -- --
Total Income From Operations 1,267.66 976.85 1,188.97
EXPENDITURE
Consumption of Raw Materials 1.65 1.68 3.47
Purchase of Traded Goods 872.33 479.62 796.17
Increase/Decrease in Stocks -46.13 107.92 -32
Power & Fuel -- -- --
Employees Cost 70.76 61.92 62.16
Depreciation 43.99 42.84 38.6
Excise Duty -- -- --
Admin. And Selling Expenses -- -- --
R & D Expenses -- -- --
Provisions And Contingencies -- -- --
Exp. Capitalised -- -- --
Other Expenses 265.77 237.4 254.82
P/L Before Other Inc. , Int., Excpt. Items & Tax 59.29 45.47 65.75
Other Income 9.13 9.77 11.37
P/L Before Int., Excpt. Items & Tax 68.42 55.24 77.12
Interest 25.11 25.17 22.46
P/L Before Exceptional Items & Tax 43.31 30.07 54.66
Exceptional Items -- -- --
P/L Before Tax 43.31 30.07 54.66
Tax 15 4.13 17.01
P/L After Tax from Ordinary Activities 28.31 25.94 37.65
Prior Year Adjustments -- -- --
Extra Ordinary Items -- -- --
Net Profit/(Loss) For the Period 28.31 25.94 37.65
Equity Share Capital 38.89 38.08 38.08
Reserves Excluding Revaluation Reserves -- -- --
Equity Dividend Rate (%) -- -- --
EPS Before Extra Ordinary
Basic EPS 1.5 1.48 1.99
Diluted EPS 1.49 1.48 1.98
EPS After Extra Ordinary
Basic EPS 1.5 1.48 1.99
Diluted EPS 1.49 1.48 1.98
Public Share Holding
No Of Shares (Crores) -- -- --
Share Holding (%) -- -- --
Promoters and Promoter Group Shareholding
a) Pledged/Encumbered
- Number of shares (Crores) -- -- --
- Per. of shares (as a % of the total sh. of prom. and promoter group) -- -- --
- Per. of shares (as a % of the total Share Cap. of the company) -- -- --
b) Non-encumbered
- Number of shares (Crores) -- -- --
- Per. of shares (as a % of the total sh. of prom. and promoter group) -- -- --
- Per. of shares (as a % of the total Share Cap. of the company) -- -- --
Notes |201806 |201803 |201712
3.2.6 Achievements & Awards

 Brand Factory won IMAGES Most Admired Multibrand Fashion Retailer of the
Year: Marketing and Promotions for the "Free Shopping Weekend" promotion

Future Lifestyle Fashions Ltd led the honourees’ list of outstanding achievers in Indian
fashion retailing at the 17th Annual IMAGES Fashion Awards (IFA), India’s biggest
honours for fashion companies and professionals, in Mumbai on the evening of April
13, 2017.

With five trophies in as many categories (for Indigo Nation, Central, Brand
Factory, Cover Story and Future Lifestyle Fashions Ltd), the company dominated the
spectacular ceremony, which witnessed United Colors of Benetton (UCB) and women
wear brand W receiving multiple trophies as well.

The awards evening, which was also the grand finale of the 17th edition of India
Fashion Forum(IFF), was attended by over 600 of India’s most prominent
organisational, business and category heads from the country’s leading fashion and
retail companies. Emceed by popular anchor Neha Sareen and stand-up comedian and
actor Ash Chandler, the ceremony recognised the achievements of outstanding fashion
brands and retailers across 25 unique categories.

Future Lifestyle Fashions was adjudged as IMAGES Most Admired Fashion Company
of the year, while its retail format Cover Story, which was launched in 2016, was
conferred with the title of IMAGES Most Admired Fashion Brand of the Year: New
Launch. Indigo Nation was adjudged as IMAGES Most Admired Fashion Brand of the
Year: Men’s Western wear, while IMAGES Most Admired Multi-Brand Fashion
Retailer of the Year: Marketing & Promotions went to ‘Free Shopping Weekend’ by
Brand Factory, and IMAGES Most Admired Design Concept of the year: Theme Store
went to Central in “High Definition”.

 Brand Factory won Best Digital Performance marketing campaign at India

content leadership awards for Free Shopping Weekend