CARE assigns 'PR1+' to STD of Colorplus Fashions
: CARE has assigned ‘PR1+’ rating to the commercial paper / short-term debt programme of Colorplus Fashions Ltd, for an amount up to Rs 11 crore and maturity up to one year.
By INDIATIMES NEWS NETWORK |
MUMBAI: CARE has assigned ‘PR1+’ rating to the commercial paper / short-term debt programme of Colorplus Fashions Ltd, for an amount up to Rs 11 crore and maturity up to one year. This rating indicates strong capacity for timely payment and carries lowest credit risk.
The rating draws strength from strong parentage, in terms of synergistic operations with the business profile of Raymond Ltd. The rating also reflects Colorplus Fashions’s dominant position in the domestic branded men’s casual apparel industry, increasing retail presence through new brand outlets and low gearing levels. However, rapid changes in fashion trends, concentration in single brand, and likely competition from other labels as well as international brands, are the key rating sensitivities.
Colorplus Fashions was initially promoted by Chennai based garment exporter, Ambattur Clothing Ltd, and subsequently the entire business was acquired by Raymond group in 2003. It is a wholly owned subsidiary of Raymond Apparel Ltd. which in turn is a subsidiary of Raymond Ltd.
The company has positioned ‘Colorplus’ as a high end brand in the readymade casual apparel industry. Its dominant presence in specialty apparels denotes that its product diversification is very low, raising business risk. Further, owing to its presence in a single brand, it is likely to face stiff competition from domestic and international private labels. However, with the intended foray into women’s wear and kids’ wear segments, the company is geared to address this concern.
The rating draws strength from strong parentage, in terms of synergistic operations with the business profile of Raymond Ltd. The rating also reflects Colorplus Fashions’s dominant position in the domestic branded men’s casual apparel industry, increasing retail presence through new brand outlets and low gearing levels. However, rapid changes in fashion trends, concentration in single brand, and likely competition from other labels as well as international brands, are the key rating sensitivities.
Colorplus Fashions was initially promoted by Chennai based garment exporter, Ambattur Clothing Ltd, and subsequently the entire business was acquired by Raymond group in 2003. It is a wholly owned subsidiary of Raymond Apparel Ltd. which in turn is a subsidiary of Raymond Ltd.
The company has positioned ‘Colorplus’ as a high end brand in the readymade casual apparel industry. Its dominant presence in specialty apparels denotes that its product diversification is very low, raising business risk. Further, owing to its presence in a single brand, it is likely to face stiff competition from domestic and international private labels. However, with the intended foray into women’s wear and kids’ wear segments, the company is geared to address this concern.
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