Lahore, December 15, 2022 (PPI-OT):Khaadi Pakistan (SMC-Pvt) Limited (Khaadi or The Company) is a distinct player in the retail fashion industry. With over two decades of history, reflecting growth and expansion, Khaadi has built strong brand equity. It has become synonymous with innovation and quality while ensuring affordability for its target customer base. The basket of the products offered (Ready to Wear (Eastern and Western), Fabrics, Khaadi Khaas, Accessories, Fragrances, Home, and many more). The topline size and growth supplement this assertion. The business model of Khaadi, as envisioned by its founder and CEO, has been the self-propelling force for the expansion of the entity.
The retail network has reached half a million square foot physical presence. The brand has outreached outside Pakistan as well. Khaadi designs its outlets to give walk-in customers more than a shopping experience. The Experience Hub launched in December 2021 in Dolmen, Karachi, with a square footage of 32,000 came about not just to create a shopping space, but where experiences can be had while connecting with the product ranges. Khaadi also plans to target the audience of Lahore and Islamabad. The Company will also launch the Hub experience shop in Lahore. Re-branding of the logo is the leverage of distinct plans of the Company which will further unfold in the upcoming years.
Recently a IFC invested $ 25mln in Khaadi Corporation. The equity injection will be utilized in expanding the presence and product lines across Pakistan and abroad. The entity has a strong management structure in place, with professionals leading their respective roles. The Company takes pride in its design team which is considered the brain behind the brand. The reported numbers for FY22 reflect the stable position of the Company. Sales mix represents a major contribution in Fabric (FY22: 66% of total revenue (FY21: 67%).
The ratings are dependent on the recovery in the business performance and relative position of the entity. The financial profile is also expected to improve as anticipated. Governance of the Company is expected to take positive support from the initiatives undertaken by the sponsor shareholder.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
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Email: hammad.rashid@pacra.com
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