Tata Group: Tata Group is in talks to buy popular clothing brand Fab India. In 2020-21, Fabindia’s revenue fell by 30 percent to Rs 1,059 crore. Fabindia has posted a loss of Rs 116 crore in the financial year ended March 2021.
Tata Group
Tata Group is in talks to buy popular clothing brand Fab India. Fabindia’s revenue was down by 30 percent in 2020-21. Fabindia posted a loss of Rs 116 crore in the financial year ended March 2021. It was the first time in the company’s 60-year history that the company faced a loss.
A company needs funds
The company, which sources products from rural areas and sells them to urban customers, saw its sales decline for the first time in two decades. The company has suffered huge losses in the last three years. Fab India needs funds not only to pay off debt but also to expand the capacity of its stores. This was reported by Business Line.
Tata Group and Fab India did not make any statement regarding the purchase. It is possible that the Tata group can buy the company for less than 400 crores. A spokesperson of Fab India has said that there is no discussion in this regard.
Fabindia slipped into losses for the first time in 20 years with 116 Cr Loss
They Shut 32 stores
Is this because of the Boycott ? pic.twitter.com/cDqfuLrVVf
— Narayanan P S 🇮🇳 (@suresham_) December 14, 2021
Fab India withdraws IPO
Fab India had decided to raise 4000 crore IPO last year. Out of which Rs 500 crore was to be sold through fresh issue and 25.1 million shares were to be sold to existing shareholders in the IPO.
The company filed draft documents for approval to launch the IPO with stock market regulator SEBI in January 2022, which was also approved by SEBI in April 2022. But the company called off the IPO citing the fall in the stock market and the ongoing turmoil in the market.
This is how Fab India started
Fab India was started by John Bissell in 1960. The company has created a distinct niche for itself in Indian traditional wear.
In fact, American John Bissell visited India in 1958 with the aim of establishing the All India Handicrafts Board and Cottage Industries as a market for handloom garments and stayed here.
This company started with a shop. Fab India established its first retail store in Delhi in 1976. The company also has stores in the country and abroad.
William Bissell, son of company founder John Bissell, currently runs the company. He joined his father’s business in 1988. In its early days, William founded the artisan cooperative ‘Bhadrajun Artisan Trust’ (BAT), which worked with weavers in Rajasthan. The company today works with 55,000 artisans across the country to create world-class products.
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