Credo Brands Marketing Limited is engaged in the retail sale of garments and accessories, they we do not manufacture any apparel. The company sells Western casual wear clothing for men under the brand name ‘Mufti.' The clothing range includes shirts, t-shirts, jeans, chinos, i.e. all year-round clothing. Launched 25 years ago, the brand is focused on creative, bold, and expressive clothing for the contemporary Indian man. The products are available through a pan-India multichannel distribution network built over the years comprising of our exclusive brand outlets (EBOs), large format stores and multi-brand outlets (MBOs), as well as online channels. The EBOs are located nationwide across high streets, malls, airports and residential market areas.
The business model is asset-light with respect to plant, property, and equipment, primarily due to outsourcing of manufacturing operations. They focus on the design of products and outsource the manufacturing of products to various manufacturing partners.
Strengths And Risks
+ Brand Equity: Launched in the year 1998, our brand“Mufti” is a recognized brand with 25 years of presence in India. The diverse products range comes under the mid-premium to premium price range of clothing in India. The brand competes with premium names in similar price brackets such as Jack & Jones, Levi’s, Pepe Jeans and U.S. Polo Assn.
+ Pan India Distribution: Credo Brands Marketing has a pan India presence with a reach extending from Major Metros to Tier-3 cities across 1807 touchpoints. These offline channels are complemented by their website and e-commerce sites.
+ Asset Light Model: With a focus on creating unique design based brand, Credo outsources all its manufacturing operations, while all aspects of design are managed in-house. This helps them to maintain an asset-light model with respect to plant, property, and equipment.
+ Financial Performance: Credo has organically grown its operations and has demonstrated an increase in our revenues and profitability, other than in Fiscal 2021 during Covid period. Their revenue from operations grew by 46.02% in FY 23 and 39% in FY '22. The PAT margin was 15.56% in FY '23 and 10.48% in FY '22.
- Niche Segment: The business is primarily concentrated on the sale of men’s casual western wear and is vulnerable to variations in demand and changes in consumer preferences which could have an adverse effect on the business,
- Single Brand : All of company's products are sold under a single brand, ‘Mufti’. Any inability to effectively market the products, or any deterioration in public perception of the brand could affect consumer footfall and adversely impact the business.
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- Highly Competititve Segment: Company operates in highly competitive markets in each of the product segments in both offline and online channels. Any inability to compete effectively may adversely affect the business. Further, pricing pressure from our competitors may affect their product prices and revenue.
- Third Party Manufacturing: Credo has a network of 48 manufacturing partners for procurement of finished products. If these manufacturing partners, temporarily or permanently, are unable to provide the finished products as per required timeline, quality and price, it may adversely affect the business operations.
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