About the Company:
Brand Concepts (Incorporated in the year 2007) is engaged in the business of selling licensed fashion and lifestyle brands in category – travel gears, bags and accessories.
Brand Concepts is an offshoot from IFF Overseas, which specialises in the manufacturing of bags, backpacks & fashion accessories for the Indian & International markets.
Company represents a wide mix of International and domestic brands, including but not limited to Tommy Hilfiger, HEAD, AND and Global Desi.They have exclusive franchise of Tommy Hilfiger and Trademark licenses of HEAD, AND and Global Desi.
The brand “Tommy Hilfiger” contributed about 80.77% and 91.12% of our revenues for period ended June 30, 2017 and the year ended March 31, 2017 respectively.
In addition to the licensed brands, Company has also launched two of own brands i.e. Sugarush (ladies hand bags) and The Vertical (backpacks).
Company’s business has grown over the years, so have its product offerings.They launched with travel gears, but now they have added bags, backpacks small leather goods, and ladies hand bags to their product portfolio.
With a dedicated team of in-house professionals that include merchandisers, account specialists and retail planners, Brand Concept services its key retail relationships with unmatched execution and program management.
The team is backed by strong sourcing network, in-house trend-spotting and design teams, coupled with robust logistics and warehousing network.
They do retail sale of the products through Company owned/ franchisee exclusive brand outlets (EBOs) and multi brand outlets (MBOs) across the country.Company has 12 EBOs and 10 MBOs, which are present across the country.
Company’s products are also sold at Large departmental stores and on e-commerce website apart from though dealer distribution network.
They have distributors in about 13 cities across India for distribution of the products. These distributors are responsible for supplying to various mom and pop stores.
Company Sells Products from following Brands:
- Tommy Hilfiger.
- HEAD
- AND
- Global Desi.
- Sugarush. (Own brand)
- The Vertical (Own Brand)
Parent Group Company:
IFF Overseas Pvt. Ltd. is one of the leading manufacturers & exporters of Cotton canvas bags, Hand bags, Denim bags, Canvas bags with leather trims, Polyester / Nylon Bags, Jute Bags and Other Textile Made-ups and Garments.
Brand wise Revenue Breakup: (in crores)
| Brand Name | 30th June 17 | FY 17 |
|---|---|---|
| Tommy Hilfiger Travel Gears | 3.21 | 28.42 |
| Tommy Hilfiger Small Leather Goods | 4.30 | 23.59 |
| Sugarush | 0.44 | 0.87 |
| The Vertical | 0.36 | 0.99 |
| AND | 0.74 | —– |
| Global Desi | 0.46 | —– |
| Head | 0.07 | —– |
Top Customers and Revenue Breakup:
| Name | Revenue (in crores) | % as to sales |
|---|---|---|
| Myntra Designs Private Limited | 11.32 | 18.16 |
| Shoppers Stop Ltd. | 7.28 | 11.68 |
| Tommy Hilfiger Arvind Fashion Pvt. Ltd. | 6.68 | 10.72 |
| Flipkart India Pvt Ltd | 4.78 | 7.67 |
| Lifestyle International Pvt.Ltd. | 3.33 | 5.35 |
| Jade Eservices Private Limited | 2.93 | 4.71 |
| Central A Division Of FLFL (Future Group) | 2.68 | 4.30 |
Management Team:
- Mr. Prateek Maheshwari (Designation: Managing Director)
- Mr. Abhinav Kumar (Designation: Whole-time Director and Chief Financial officer)
- Ms. Annapurna Maheshwari (Designation: Non- Executive Director)
Promoters Average Acquisition Cost:
| Name of the Promoter | No. of Shares held | Average Acquisition Cost (in Rs.) |
|---|---|---|
| IFF Overseas Private Limited | 5,88,000 | 18.33 |
| Pradeep Maheshwari(HUF) | 9,00,000 | 11.11 |
| Mr. Pradeep Maheshwari | 25,25,000 | 10.30 |
Objectives of the Issue:
- To meet the working capital requirements of the Company;
- General Corporate Purpose;
- Issue Expenses.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Working Capital requirements | 8.51 |
| General Corporate Expenses | 2.50 |
| Issue Expenses | 1.61 |
| Net Proceeds | 12.62 crores |
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th June 17 |
|---|---|---|---|---|---|---|
| Revenue | 33.31 | 28.25 | 38.74 | 50.66 | 62.46 | 10.87 |
| Net Profit | (-1.6) | (-4.94) | 1.32 | 0.91 | 1.44 | (-0.92) |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio |
|---|---|---|---|
| Brand Concepts Limited | 10 | 2.05 | 21.95 |
| VIP Industries Limited | 2 | 5.38 | 65.97 |
| Safari Industries (India) Limited | 2 | 23.41 | 23.26 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 29th December 2017 |
| Issue Closes on:. | 2nd January 2018 |
| Issue Price | Rs.45 |
| Face Value | Rs.10 |
| Minimum Lot | 3000 |
| Minimum Investment | Rs.1,35,000 |
| Issue Constitutes | 26.51% |
| Issue Size | Rs.12.62 cr |
| Market Cap | Rs.47.62 cr |
| Listing at | NSE SME |
| Total Equity Shares Offered (Fresh) | 28,05,000 |
| Equity Shares Prior | 77,77,800 |
| Equity Shares after the issue | 1,05,82,800 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 2.05 | 21.95 | 14.07% | 14.59 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Neutral | NA | NA |
| Check IPO Allotment Status: |
|---|
Bigshare Website (Click on the Below Link)http://www.bigshareonline.com/bssipoapplicationstatus.aspx |
| Company Contact Info: |
|---|
| BRAND CONCEPTS LIMITED F-55, First Floor, R City Phase 2, Opp. Presidential Towers, 146, Lal Bahadur Shastri Marg, Ghatkoper (West), Mumbai-400086, Maharashtra, India Tel:022-25175221 Email: swati.gupta@brandconcepts.in Website: www.brandconcepts.in |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED Bharat Tin Works Building, 1st Floor, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai – 400059 Tel: +91 22 62638200 Fax: +91 22 62638299 E-mail: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| SARTHI CAPITAL ADVISORS PRIVATE LIMITED 159/11, Amar Brass Compound, Vidyanagari Marg, Kalina, Santacruz (E), Mumbai – 400098 Tel: +91 22 26528671/72 Fax: +91 22 26528673 Investor Grievance Email: ipo@sarthiwm.in Website: www.sarthi.in |
