Vedant Fashions Limited: history, ownership, mission, how it works & makes money

A Brief History of Vedant Fashions Limited

Vedant Fashions Limited, established in 2002, is a prominent player in the Indian ethnic wear segment, known for its flagship brand, Manyavar. With over 500 retail stores across India and international locations, it has become synonymous with wedding and festive attire.

In 2021, Vedant Fashions went public with an IPO that raised approximately ₹3,149 crore (about USD 421 million). The IPO was oversubscribed by more than 198 times, reflecting strong market demand.

For the fiscal year 2022, Vedant Fashions reported a total revenue of ₹1,042 crore, marking a growth of 61% from the previous year. The net profit for the same period stood at ₹220 crore, a significant increase compared to ₹36 crore in the prior year.

The company’s EBITDA for FY22 reached ₹356 crore, resulting in an EBITDA margin of approximately 34.2%.

Vedant Fashions has also expanded its product offerings over the years, introducing new sub-brands such as Mohey, which caters specifically to women’s ethnic wear. This diversification strategy contributed significantly to the company's overall revenue growth, with Manyavar alone generating about 80% of total sales in recent years.

As of March 2022, Vedant Fashions had a robust balance sheet, with total assets amounting to ₹1,098 crore, while total liabilities were ₹360 crore, showcasing a healthy asset-to-liability ratio.

In line with its growth plans, the company has earmarked significant investments in expanding its store network and enhancing its online presence. The management aims to increase the number of stores from 500 to over 1,000 over the next few years, targeting tier-1 and tier-2 cities across India.

Vedant Fashions maintains a strong brand equity with an extensive marketing strategy that includes celebrity endorsements and participation in major cultural events. This branding strategy has propelled Manyavar to be recognized as one of the top brands in the ethnic wear sector in India.

The company’s stock, listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), has performed well post-IPO, reflecting investors' confidence. As of the latest data in October 2023, the share price was trading around ₹950, significantly higher than its IPO issue price of ₹866.

A Who Owns Vedant Fashions Limited

Vedant Fashions Limited, known for its brand "Manyavar," is a prominent player in the Indian ethnic wear market. As of the latest filings, the ownership structure of Vedant Fashions Limited reflects a mix of institutional and individual shareholders.

Shareholding Pattern

The promoter group, led by Chairman and Managing Director, Vedant Agarwal, holds a significant share, ensuring the company's strategic direction remains under the influence of its founders.

Key Shareholders

The key stakeholders within the promoter group include:

• Vedant Agarwal - Chairman & Managing Director
• Rishi Agarwal - Director
• Vivek Agarwal - Director

As of October 2023, the family collectively holds approximately 57.26% of the total shares, indicating a strong control over company policies and operations.

Institutional Ownership

Institutional investors have shown significant interest in Vedant Fashions Limited:

• Foreign Institutional Investors hold 10.43% of the total shareholding.
• Domestic Institutional Investors account for 5.67%.

This blend of institutional and promoter ownership signifies a balanced approach to corporate governance, enabling the company to attract capital while maintaining control.

Recent Stock Performance

As of October 2023, Vedant Fashions Limited has witnessed a stock price of approximately ₹1,021 per share. The market capitalization stands around ₹8,000 crore, reflecting investor confidence in the brand's growth trajectory.

Conclusion of Ownership Dynamics

The ownership dynamics at Vedant Fashions Limited illustrate a robust foundation for sustained growth, driven by a strong promoter presence and increasing institutional interest.

Vedant Fashions Limited Mission Statement

Vedant Fashions Limited, known for its ethnic wear under the brand "Manyavar," operates with a clear focus on providing high-quality traditional apparel that caters to a diverse range of consumers. The company's mission emphasizes creating a lasting impression through its products while promoting Indian traditions and culture.

The company's mission statement is centered around the following key principles:

• Quality Commitment: To deliver the highest quality products that reflect the authenticity of Indian craftsmanship.
• Consumer Satisfaction: To ensure exceptional customer experiences, fostering brand loyalty and trust.
• Innovation: To continuously innovate in design and technology, setting trends in the ethnic wear market.
• Sustainability: To engage in sustainable practices throughout its production and supply chain.
• Community Development: To contribute positively to the communities in which it operates, through employment and skill development initiatives.

As of the latest financial data, Vedant Fashions Limited reported the following key figures for the financial year 2022-2023:

With these numbers, Vedant Fashions Limited demonstrates robust financial health and a strong positioning in the market. The company's commitment to innovation is seen in its latest collection, which includes a blend of traditional and contemporary designs, appealing to the younger demographic.

In terms of market expansion, Vedant Fashions has been actively increasing its footprint. As of October 2023, the company has over 600 stores across India and is looking to expand into international markets, tapping into the growing demand for ethnic wear among the Indian diaspora.

Furthermore, the company has implemented a strong digital strategy, with significant investments in e-commerce. In FY 2022-2023, online sales accounted for approximately 30% of total revenue, highlighting a shift in consumer shopping behavior.

Vedant Fashions' mission is not only to sustain growth but also to ensure that its operations contribute positively to society and the environment, reinforcing its role as a leader in the ethnic apparel sector.

How Vedant Fashions Limited Works

Vedant Fashions Limited, known primarily for its flagship brand, Manyavar, operates within the ethnic wear segment of the Indian textile and apparel industry. The company specializes in the design, retail, and manufacturing of traditional attire, particularly for weddings and festive occasions.

Business Model

Vedant Fashions follows a multi-channel retail strategy, encompassing both exclusive brand outlets (EBOs) and online platforms. The company has over 1,200 stores across multiple cities in India. This presence allows for a broad reach into domestic markets, capitalizing on the increasing demand for ethnic wear.

Revenue Streams

The primary revenue sources for Vedant Fashions include:

• Direct sales from exclusive brand outlets.
• E-commerce sales through its website and third-party platforms like Amazon and Flipkart.
• B2B sales to other retailers.

In FY 2023, Vedant Fashions reported a revenue of ₹1,145.4 crore, an increase from ₹809.0 crore in FY 2022, showcasing a growth of approximately 41.5%.

Financial Performance

Market Trends

The Indian ethnic wear market is projected to reach ₹1.5 trillion by 2026, driven by factors such as rising disposable incomes, changing consumer preferences, and growing awareness of traditional fashion. Vedant Fashions stands to benefit from these trends, particularly in the wedding segment, which accounts for a substantial portion of its revenue.

Operational Insights

Vedant Fashions has focused on enhancing customer experience through modern retail practices. The company employs a combination of digital marketing strategies and promotional events. In recent years, it has launched various collections that cater to contemporary fashion sensibilities while maintaining traditional aesthetics.

Sustainability Practices

Recognizing the importance of sustainability, Vedant Fashions has implemented eco-friendly practices across its supply chain. These initiatives include using sustainable materials and minimizing water wastage during manufacturing processes, contributing to its appeal among environmentally conscious consumers.

Future Outlook

With plans to increase its store count by 15% annually, Vedant Fashions aims to capture greater market share. New product lines and partnerships are expected to support this growth trajectory further. The emphasis on digital sales is also projected to boost overall earnings, as online retail becomes increasingly prominent in the fashion industry.

How Vedant Fashions Limited Makes Money

Vedant Fashions Limited, listed on the Bombay Stock Exchange (BSE) under the ticker VEDANTFASH, operates primarily in the ethnic apparel segment in India. The company is best known for its flagship brand, Manyavar, which specializes in men's ethnic wear, including sherwanis, kurtas, and accessories.

In fiscal year 2022, the company reported a revenue of ₹1,579 crores, showing a growth of approximately 43% year-over-year. A significant portion of this revenue comes from retail sales through their extensive network of stores, which totals over 900 outlets across more than 200 cities in India.

The company's revenue is generated through various streams:

• Retail Sales: Over 75% of revenue comes from retail sales.
• Online Sales: In FY 2022, online sales contributed approximately 15% to the total revenue, driven by a growing e-commerce strategy.
• Wholesale Distribution: The wholesale segment accounts for nearly 10% of total revenue, with products supplied to multi-brand outlets and regional distributors.

Vedant Fashions has focused on expanding its product offerings. The company's portfolio includes traditional and fusion wear for women and children, further diversifying its income sources. The introduction of new lines, such as bridal collections, has also boosted sales.

Additionally, the company has invested in marketing campaigns and brand collaborations, enhancing its visibility and brand equity. In the recent fiscal year, marketing expenses were approximately ₹75 crores, contributing to a robust 5% increase in foot traffic to their physical stores.

Vedant Fashions has also leveraged digital platforms to reach a broader audience. The launch of their dedicated e-commerce portal, along with partnerships with major online retailers, has resulted in a 60% increase in online traffic and improved conversion rates.

In FY 2022, the company reported a net profit of ₹341 crores, reflecting a net profit margin of approximately 22%. This profitability is indicative of a strong operational framework and efficient cost management strategies. The company’s EBITDA margin stood at 35%, a testament to its ability to maintain healthy earnings before interest, taxes, depreciation, and amortization.

Overall, Vedant Fashions Limited has established a multifaceted revenue model, capitalizing on both traditional retail and modern e-commerce platforms to drive consistent financial performance.