Saturday, May 23, 2015
Be it Apple, Microsoft, Nestle or P&G , If we closely track the history of huge wealth creating stocks around the globe, in majority cases we can find out one common factor – the company owns or entitled to use one or more successful brands. Indian market is not an exception . We have many examples like Page Industries ( Jockey), Jubilant Foodworks ( Dominos) ,Eicher Motors ( Royal Enfield) , Whirlpool ,Laopala ..etc. The new kid on this block is Pantaloon Fashion Retails. Ltd. Let us look into this which I consider as a true multi bagger in making for long term investors.
It came into existence by joining the fashion arms of erstwhile Pantaloon Retail and Future Ventures .By virtue of its name ,many investors still considering PFRL as a company belongs to the debt ridden future group led by Kishore Biyani.But in reality , now this company belongs to Kumar Mangalam Birla led Aditya Birla Group . Earlier Biyani sold it to Aditya Birla group in an effort to pare the debt of his future group.
What make this loss making company suddenly attractive is the scheme of arrangement announced by Aditya Birla Group few days back.To consolidate all its branded apparel business into a single entity AB Group now bringing many super brands under PFRL’s fold. It will de-merge Madura Fashion (the branded apparel retailing division) and Madura Garments Lifestyle (luxury branded apparel retailing division) and merge them with Pantaloons.This scheme of arrangement will bring many undisputed brands in premium apparel segment with this company which includes - Louis Philippe, Van Heusen, Allen Solly, People, Hackett London , The Collective ,Peter England ..etc. I don’t think any extra explanation is needed to describe the success of these brands in our market and hence not wasting time for that .
Posted by VALUEPICK at 6:18 AM