Koutons to raise Rs 40 crore

Friday, 24 September 2010

Koutons Retail India plans to raise Rs 400 crores in the form of a preferential allotment. The company’s board recommended a dividend of 2 per cent for the last fiscal year. It plans to start a cotton business. The manufacturer-turned-retailer’s debt stands at Rs 570 crores, including a working capital limit of Rs 425 crores. The bulk of its working capital is being used for the manufacturing division. Its total inventory is Rs 675 crores, including Rs 330 crores at stores.

Koutons was incepted in 1991 as Charlie Creations. It started primarily as a denim brand but today manufactures and sells complete men’s, women’s and kids’ wardrobe under the brand name Koutons, Les Femme and Koutons Junior. Another brand from their stable is Charlie Outlaw, which caters to teens with jeans, T-shirts, jackets etc. Koutons caters to the upper and upper middle class between 18 to 60 years. It has more than 1,400 outlets across India. It moved up the value chain from a garment manufacturer to a retailer by opening up its own stores in 2002.