KEY EXECUTIVES

Nikhil Chaturvedi , Managing Director Salil Chaturvedi , Deputy Managing Director Deep Gupta , Whole-time Director Rakesh Rawat , Whole-time Director

 BSE: 532647 | NSE: PROVOGE | ISIN: INE968G01033 Market Cap: [Rs.Cr.] 134 | Face Value: [Rs.] 1 Industry: Textiles - Products

PROVOGUE
Provogue (India) Limited (PIL) was incorporated on 17th November 1997 as Acme Clothing Private Limited and commenced its operations as a manufacture and retailer of apparel for men under the brand Provogue. The Company's philosophy of `creating trends' in fashion, an aggressive marketing strategy, coupled with high profile promotional events and its distribution strategy of retailing through selective stores and malls has resulted in Provogue being now positioned as a leading fashion brand in India.

 The Company had launched the fashion brand Provogue' in March of the year 1998. The beginning of 1998 saw Provogue being launched in a Multi Brand Outlet, i.e. The Bombay Stores, Mumbai and progressing to 120 Multi Brand Outlets by the end of 1999. The first exclusive `Provogue' store was opened in Lokhandwala Complex, Andheri, Mumbai in the year 2000 . Promart, a division of Provogue launched its first store in Ahmedabad in May of the year 2007.

1997 * Acme Clothing Private Limited was incorporated on November 11, 1997 1998 * The Company launched its brand "Provogue" 1999 * John Abraham was projected as the brand ambassador for Provogue. * The Company introduced the brand "Provogue" in National Chain Stores like Piramyd, Shopper's Stop and Lifestyle 2000 * The Company opened the first "Provogue Studio" (an exclusive brand outlet) in Lokhandwala, Andheri, Mumbai

2001 * The Company opened its second Studio Store in Chandigarh

* The Company signed bollywood actor Fardeen Khan as the Brand Ambassador

 2002 * The Company set up its factory at Daman to manufacture apparel.

2003 * The Company introduced the concept of "Provogue Lounge" at High Street Phoenix, Mumbai
2004 * The Company acquired Acme Global which enabled it to enter into fabric processing business * The Company entered into a License Agreement with M/s. Rajni Frames for the manufacture and sale of eye wear products under its brand name * The Company acquired 15,906 shares of Acme Hotels & Hospitality Private Limited ("AHHPL") pursuant to which AHHPL became its subsidiary 2005 * The Company changed its name to Provogue (India) Limited

2000 IFA: Winner `Most Admired Product Launch' - Provogue

2000 IFA Hall of Fame: `Most Admired Apparel Company in India' - Acme Clothing
2001 IFA: Hall of Fame `Most Popular Fashion Campaign of The Year' - Provogue 2001 IFA Hall of Fame `Most Admired Apparel Company in India' - Acme Clothing

2001 IFA Hall of Fame: `Most Admired Brand Professional of The Year' - Nikhil Chaturvedi
2003 Lycra(R) IFA: Hall of Fame `Most Admired Fashion Campaign of The Year' - Provogue (for year 2002) 2003 Lycra(R) IFA Hall of Fame: `Most Admired Brand Professional of The Year' - Akhil Chaturvedi (for year 2002) 2003 Lycra(R) IFA: Winner `Most Admired Exclusive Brand Retail Chain Of The year' - Provogue (for year 2002) 2004 Lycra(R) IFA: Winner `Fashion Retail Concept Of The Year' - Provogue Lounge (for year 2003)

2004 Lycra(R) IFA: Hall of Fame `Most Admired Shirt Brand of The Year' - Provogue (for year 2003) 2004 Lycra(R) IFA: Hall of Fame `Most Recalled Fashion Campaign Of The Year' Provogue (for year 2003) 2004 Lycra(R) IFA: Winner `Most Admired Exclusive Brand Retail Chain Of The year' - Provogue (for year 2003) 2004 IFA: Hall of Fame `Retailer Of The Year in Fashion' - Provogue (for year 200304) 2004 Golden Scale Award for the Menswear Brand in Apparel by CMAI 2004 2004 DFU's inside Fashion brand award for excellence in retail performance

2005

-Lycra(R) IFA Winner: `Most Admired Fashion Forward Brand of the year' - Provogue
-Master Brand Award for Menswear Apparel -Provogue (India) Ltd signs an exclusive Licensee Agreement with M&B Footwear Pvt Ltd

2006
-Provogue India - WOS enters into MoU with Omaxe Construction, New Delhi

2008 - The Company has splits its face value from Rs10/- to Rs2/-. 2010 - Provogue (India) Ltd has inducted Mr. Punit Goenka into the Board of the Company and he shall be an Independent Non Executive Director of the Company.

PRODUCTS

Key Business Models for Provogue

Manufacturing Stage
Distribution Stage Branding Stage

Brand Owner may provide designs and / or raw materials

Outsourcing Manufacturing Brand Name Own Manufacturing Sell to a brand owner or Purchase brand

Distribute through own stores

Distribute through multi brand outlets

Distribution Strategy
Distribution Channels Owned Stores / Exclusive Brand Outlet Retailers

Discount Stores

Distributors

Exports

Multi Brand Outlets or Shopping Malls

Distributions Channels
Owned Stores / Exclusive Brand Outlets
Advantages direct medium of selling apparel high realization for the garment sold end-user feedback and knowledge of their preferences Disadvantages requires greater advertising expenditure greater fixed costs

Distributions Channels
Multi-Brands Outlets' or Shopping Malls
Organization sells apparels to multi-brand outlets, which in turn sell them through large retail space MBOs are located in prime locations of the various cities and towns ensuring maximum reach MBOs are chain of shopping malls having a presence in more than one location Realization from this channel is lower than those earned by selling to the retailers; as MBOs keep higher margins because their costs are higher

Distributions Channels
Distributors
This channel involves two middle agencies between the seller and the enduser Organization sells it to the distributor, who in turn sells to the Retailers or MBOs Realization from this channel are low

Discount Stores
For selling apparels at lower prices to attract larger volumes Used for selling apparels with minor defects or for selling slowmoving stocks Low realization from this channel as garments are old-fashioned or sold at low prices for gaining big volumes

Distributions Channels
Retailers
Company sells garment to Traders or Commission Agents Greater reach of the distribution channel Creation of a middle agency between the organization and the end-user Lower realizations from this channel

Distribution Channels
Low Realizations, but lower advertising and fixed costs Higher realizations than selling through distributors HIGH

Returns

MEDIUM

LOW

Advertising and fixed costs are lower

High realizations but advertising and fixed costs are high

Distribution Channels

Porters 5 Force Model

Porters 5 Force Model

Bargaining power of customers
Majority of the buyers are individual consumers With emergence of new brands consumers have vast range of garments Indias consumer profile is getting younger Economy of the country is improving so is the income level With increase in disposable income, the size of Indias middle class is also improving. Co existence of different players in the market tends to lower customer switching costs.

Cont
Bargaining power of Suppliers
Key suppliers are apparel manufactures, wholesalers and raw material suppliers Suppliers are mostly small to medium sized enterprises With option to choose number of retailers rise in raw material and inventory costs are also a threat. Since the cost of human labour is low, the supplier of man power have strong supplier power The overall supplier power is moderately high in this sector

Cont
Threat of new entrants
Industry is attracting national and international players to step up in the arena. There are diverse product lines, so product differentiation provided by new entrant is high Entry into industry requires low capital outlay so it is a growing stage which in turn eases up setting up individual retail stores. Low switching cost of the customers implies they can anytime easily switch from existing to new entry So entrance of new player in the market is high

Cont
Threat of substitute products
Purchases can be from manufactures, custom made garments and online sales. The option of tailor made is cheap but due to many options available, customers prefer retailers to fulfill their shopping needs. Thus overall threat from substitute is low.

Cont..
Competitive rivalry within industry
The industry is quite fragmented The low fixed costs, operational and maintenance costs make it easier for new player to enter into the market thus intensifying rivalry Due to changing trends in style and fashion, it is highly diverse with respect to product assortment and product width Major player tries to attain customers by competing on price, quality, product width and depth, designs, store ambience etc. All these factors make overall rivalry high

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SWOT Analysis
STRENGTHS Increasing disposable incomes of the people Brand conscious customers Availability of cheap finance Growing domestic market, increase in number of malls OPPORTUNITIES Increasing demand for luxury brands from the middle class Research and new product development can help the companies to move across the value chain

WEAKNESSES Predominance of unorganized sector Technological obsolescence in the supply chain

THREATS Increased competition in the domestic markets Cheaper imports Changing Governments policy on FDI