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Men's Clothing Company Investment Opportunity in Hyderabad, India

Seeking Investment: Retail chain offering linen-based fabrics and products for men under its brand name.

Established 5-10 year(s)
Employees 50 - 100
Legal Entity Private Limited Company
Reported Sales USD 540 thousand
Run Rate Sales USD 980 thousand
EBITDA Margin 15 %
Industries Men's Clothing
Locations  Hyderabad
Local Time 1:23 AM Asia / Kolkata
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
USD 590 thousand for 12.0% stake (Native Currency: INR 50,000,000)
Reason: The proceeds from the investment will be used for: - Increasing production and expanding our produc... View More
Includes physical assets worth USD 1.17 million
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Business Overview
- Our business is essentially a retail chain that offers a broad range of authentic linen-made products such as mens' t-shirts, shirts, trousers, accessories, linen fabric under our own brand name. We offer 10 different products in multiple designs and sizes.
- We do not manufacture the products ourselves. The production is outsourced from manufacturers in Andhra Pradesh and Telangana. They make the products and package them under our company brand name. The products are then brought back to our warehouse in Andhra Pradesh.
- Currently, we have 26 stores running under our brand company and brand name. These stores are located in different parts of Andhra Pradesh, Telangana, and Karnataka. Out of these 26 stores, 6 are completely company-operated. The remaining 20 stores have been distributed as franchisees with our company's majority controlling interest.
- All the 26 stores are rented and have an average area of 700 to 800 sq. ft. The average daily footfall at each store varies between 15 to 20 people. Every store has about 800 to 1,000 products across categories, designs and sizes.
- Each store is exclusive to our company's branded products only. The average order size is INR 1,800. The majority of our company's revenue is generated through the sale of linen fabrics and mens' clothing products.
- In the franchisee stores, the franchise owner has to hire the staff, pay their salaries, and open the store. The franchisee does not have to purchase products from us. We supply them with our branded products which they have to simply sell for us. The franchisee is paid around 35 percent of the top-line revenue. The remaining 65 percent is transferred to our company. Our company has a controlling interest in all the 20 franchisee stores.
- On the contrary, in the 6 company-operated stores, the entire revenue is transferred to our company and we are responsible for hiring the staff and selling the products. The revenue figures mentioned on the profile is the total revenue earned by our company through all 26 retail stores.
- The company is registered in Vijayawada, Andhra Pradesh but we are running operations from Hyderabad, Telangana.
- Our company's revenue has soared to an all-time high due to the large number of stores we have opened, our goodwill in the industry, and increasing high footfall per store. This is the reason why we assign a high value to our company. However, the valuation is based on our own estimate.
Products & Services Overview
Our company sells a range of linen products under our brand name such as:
- T-shirts, shirts and trousers for men.
- Linen fabrics of varied designs.
- Linen saree for women.
- Scarves and other linen-made accessories for men.
Assets Overview
Physical assets include:
- Company-owned office space.
- Company-owned products and SKUs in the retail stores and warehouse.
- Interior furnishings and furniture of the office space and retail stores.
- Air conditioners, CCTV cameras, laptops, computers, etc.
Facilities Overview
- The business runs operations from a company-owned facility spread across 2,000 sq. ft. in Hyderabad, Telangana. The facility is used as our corporate office.
- We have another facility which is rented and is spread across 4,000 sq. ft in Andhra Pradesh. The facility is used as our warehouse for storing inventory.
Capitalization Overview
Not Disclosed
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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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