Branded apparel company, Monte Carlos Fashions, is targeting to open 45-50 exclusive brand outlets in the current financial year 2023-24, said its CFO RK Sharma.
‘We will continue to open 45-50 Exclusive Brand Outlets (EBOs) in the current financial year FY24. Since we go on Franchise-Owned-Franchise-Operated (FOFO) model, no major capex is required. We invest only where Company-Owned-Company-Operated (COCO) is opened which is approximately Rs 40 lakh per showroom,” Sharma told ETCFO in an interview.
As of the FY23 close, Monte Carlos’ total number of EBOs stands at 356. Last fiscal, the company surpassed its yearly guidance of opening 40-45 new EBOs, by opening 47 such outlets.
Monte Carlos’ CFO expects “good growth” prospects for FY24 hoping for no major market disruptions. He said the company will declare its annual guidance after the conclusion of the Annual Results Board Meeting scheduled at the end of May 2023.
In FY23, Monte Carlos’ business grew by 22% over FY22 to approximately Rs 1,100 crore, the CFO shared; the company had given guidance of 20-25% growth last year.
“The Indian fashion industry has been witnessing growing a surge in demand, driven by the rising disposable income of the Indian middle class, the number of fashion-conscious e-commerce millennials and Gen Z consumers, and the growth of trends, and online fashion retail,” Monte Carlos said in its business update for Q4FY23 and FY23.
Technology top priority
The CFO said driving technology for business will be among his top priorities. The company has been experiencing a positive trend in online channels and that indicates that consumers are increasingly interested in buying its products online, he said.
“We have just implemented SAP S4 HANA with SAP CAR (Customer Activity Repository) with effect from Feb-23. Thus, we have the latest version of SAP ERP with Artificial Intelligence and Machine Learning in vendor invoice management and various dashboards in SAC (SAP Analytical Cloud) for customer behaviour and product trend in the market. This will help us to focus our weak areas and identify the strong points which will ultimately help in the business growth,” the CFO signed off.