Bang Overseas seeks big bucks in retail

IPO on January 28; to open 100 stores across the country

MUMBAI: Fashion fabrics and ready-to-wear company Bang Overseas plans to enter the retail business in a big way and will open 100 exclusive outlets pan-India by end-2009, a top company official said.

“Currently, we have 12 owned-outlets which we plan to scale up to 100 by end-2009. Besides, we are present through 157 point of sales outlets,” Bang Overseas managing director Brijgopal Bang said on Monday.

The company is also hitting the capital market on January 28 with its IPO and plans to raise Rs 72.45 crore. It has fixed price band for the issue at between Rs 200-207 per
equity share.

Bang Overseas, which has grown at over 50% CAGR over the last three years, is present in the men’s lifestyle segment through its brand, Thomas Scott.

“We will soon be entering the women’s segment as well through the brand, Miss Scott,” Bang said.

The company will also be upping its production capacity by 20,000 pieces per day. Currently, its capacity stands at 1.6-million pieces per annum. The additional capacity will be added by this year-end, he said.

An integrated manufacturing unit is being set up in Bangalore, at a cost of Rs 36 crore, Bang said, adding “for our retail expansion, we have earmarked Rs 11 crore.” 

The company which clocked a turnover of Rs 97 crore and a PAT of Rs 11 crore in FY07 earns 65-70% of its revenues from the domestic market and the remaining throughexports to markets in Scandinavia, the Middle-East and Europe.

“We import nearly 90% of our raw materials in dollars while our export contracts are mainly in euro and pound. Hence, the rupee appreciation vis-a-vis the dollar has not affected us,” Bang added.