Monte Carlo Fashions Ltd

Monte Carlo Fashions Ltd is one of the leading branded apparel companies. The company has a well diversified presence across various categories such as Cottons, Woollens, Home Furnishings and Kids etc. The company has created a comprehensive range of woollens, cottons, cotton blended, knitted and woven apparels for Men, Women and Kids under the umbrella brand Monte Carlo. The company has a strong distribution network with a wide presence across India through 2,500 plus Multi Brand Outlets (MBOs), 235 Exclusive Brand Outlets (EBOs) and 283 National Chain Stores (NCS) as at March 31, 2018. Majority of the companys revenues comes from MBOs and franchise EBOs where the company primarily sells on preorders and outright basis.Monte Carlo Fashions Ltd was launched in 1984 by Oswal Woolen Mills Ltd, the flagship company of Nahar group. The launch was a significant step in the evolution of branded garment industry in India. Since then, it has been catering to the evergrowing demands of the Clothing and Fashion industry.The brand has gained the ISO 9001: 2000 certifications and has been felicitated by the International Wool Secretariat with the prestigious Best Exhibited Product award. It has also emerged as the No. 1 brand in the mens wear category in a survey conducted in the summer of 2009 by ImagesORGMARG. In 2011, the branded apparel business of the parent company, Oswal Woollen Mills Ltd., was demerged into Monte Carlo Fashions Limited (MCFL), which retains the ownership of the brand Monte Carlo.In April 2014, the company commenced inhouse manufacturing of some of its cotton Tshirts, thermals and socks. In 2014, Monte Carlo was honored as one of ASIAS BEST MARKETING BRANDS by World Consulting Research Corporation (WCRC).During the year 2015 under review, the company launched first outlet in Hyderabad.During the financial year ended 31 March 2015, the company achieved an excellent growth in the sale of Cloak Decker the economy range launched by the company in 2014. The Company also commenced production of socks during the year. The company also expanded its sale net work by increasing its number of exclusive retail outlets/large format stores and distributors during the year.Monte Carlo Fashions shares were listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on 19 December 2014 pursuant to the successful completion of Initial Public Offering (IPO). This was an offer for sale by the existing shareholders of the company wherein the Private Equity Investor (Kanchi Investments Limited) and the Promoters divested 1646420 shares (7.58%) and 3786596 shares (17.42%) respectively, at a premium of Rs.635/ per equity share of Rs. 10/ each. The IPO of the Company received an overwhelming response from the Investors as it was oversubscribed by 7.83 times, thereby making this IPO a remarkable success. During the financial year ended 31 March 2016, the company achieved an excellent growth in the sale of Cloak Decker Tweens the economy range and the kids range respectively launched by the company in 2014. During the year under review, the company also introduced socks under the brand Monte Carlo and the response received is very encouraging. The company also expanded its sales network by increasing its number of exclusive retail outlets/large format stores and distributors during the year.Monte Carlo Fashions financial performance for the year ended 31 March 2017 was adversely impacted by demonetisation in the third quarter of financial year, which accounts. approximately 60% of its sales. To recover from lower sales in the third quarter, the Company started early discounts in the fourth quarter.During the financial year ended 31 March 2018, the company launched its Fitness and Fashion wear range in the name of ROCK IT. The basic idea behind it was to introduce garments having an ideal combination of fitness and fashion. Initially, the products were sold through the ecommerce platforms and after considering the acceptability of the products and also to push its sales the company has decided to market its new products through other distributing channels.