Cantabil’s Future Outlook: IPO and bigger family stores

Friday, 04 February 2011
Cantabil’s Future Outlook: IPO and bigger family storesWith plans to add another 200 stores by end 2011, which will include family stores with a bigger format in Tier I and II cities, Cantabil Retail is well on its way to capturing a larger share of the casual and formal apparel industry in India. Cantabil is well known for its denims and casual family wear. Cantabil Retail which started with a low turnover but soon achieved an average turnover of more than Rs 210 crores is now expecting a turnover of Rs 300crores in the fiscal ending March 2011.

Cantabil’s Future Outlook: IPO and bigger family stores Well-known for its vibrant range of casual, party and formal wear, denims, suits, jackets and pullovers tailored stylishly for both men and women in a price range starting from Rs 999, Cantabil is ready to launch its Valentine’s Day special collection. This will include party dresses, tunic, maxi dresses, and halter-neck tops for women and funky T-shirts, bright color shirts and trousers for men. The new spring/summer collection will then follow with a range of formal shirts and trousers for men with fine stripes, checks and plains in bright colors such as orange, purple, aqua, and peppermint, while the women’s collection will showcase gypsy or tunic-style dresses, skirts, cropped pants, chinos and boyfriend jeans in a variety of rich colors.

Cantabil’s styles in kid’s apparel include colorful glittery jeans, jackets, trousers, T-shirts, capris, spaghetti, halter tops, embroidered lenghas, sherwanis in various cuts and styles. For new born babies, cotton rules as it is the most comfortable, although it is reinforced with extra stretchability and manufactured from extra long-staple cotton. The quality parameters of kidswear are kept precise and are free of lead, nickel, and other such materials and are selling well.

“The apparel industry is booming in every country, but in India with the second largest population in the world, it has created a huge market. According to the ministry of textiles, total cloth production increased by 10.2 per cent during September 2010 as compared to September 2009. The highest growth was observed in the power loom sector (13.2 per cent), followed by hosiery sector (9.1 per cent). The total cloth production during April-September 2010 has increased by 2.1 per cent compared to the same period of the previous year,” points out Vijay Bansal, Chairman & Managing Director of Cantabil Retail.

With production units based in Bahadurgadh in Haryana and Delhi, the company produces three lakh pieces per month using raw materials from the domestic market and sourced from Italy. It plans to set up new facilities in the coming year and has revamped its existing plant to increase capacity to seven lakh pieces per month. Bansal says they are planning new bigger family stores as well, “We are coming up with family stores with a bigger format in Tier I-II cities. The new format will have a retail space of 1,200-1,500 sq. ft. in cities like Bangalore, Mumbai among others,” he informs. At the moment they have more than 400 EBOs of Cantabil & Lafanso and no MBO’s.

In the future, the company plans to focus on untapped semi-urban areas in India where it feels there is tremendous potential. “In year 2010, we have elaborate plans to launch an IPO by June /July 2010. Also, we have plans to add another 200 stores of Cantabil Retail by the end of 2011,” Bansal says.