In Brief

Provogue plans major expansion in product development, distribution

Provogue (India) is firming up a major plan to expand its present manufacturing and product development facilities in order to explore the opportunities in the changed business scenario. Moreover, it is also adding around 500,000 sq feet of space to its existing distribution network in the next few years.

"We want to continue our focus on the fashion segment of the apparel business keeping in mind the fast-changing consumer base in the country. The total approach of the Indian middle class is undergoing a see change with more and more consumers becoming brand conscious and preferring ready-to- wear clothing. This is also well supported by the changing retail market. We see a huge opportunity in the domestic market with our brand quite price competitive and well accepted," said Mr Nikhil Chaturvedi, managing director while announcing its recent IPO, aimed at raising funds for the company's above plan.

The company entered entered the capital market on June 10, 2005, with its maiden initial public offering of 40,49,402 equity shares of Rs 10 each for cash at a premium to be fixed through the book building process. Price band for the issue was fixed between Rs 130 and Rs 150. The issue constituted 25 per cent of the fully diluted post-issue paid-up equity capital of Rs 1619.76 lakh.

Company's key business is to design, manufacture and sell branded ready-made garments and other accessories under the brand name "Provogue". The company currently has its manufacturing unit at Daman with a capacity to manufacture 2000 shirts per day. The company plans to expand its shirt manufacturing capacity to 3000 shirts per day. Besides this the company is also setting up a trouser-making unit with a capacity to manufacture 1000 trousers per day. Hitherto the company has been outsourcing trousers, it sold through its outlets.

"Provogue also plans to invest substantially into product development facilities and training centre with a view to stay abreast of fashion trends and also retain its premium market position," said a company official.

The company intends to add 40 new small Provogue studios and 21 mega stores to its existing network of 40 stores spread across 19 cities.