|The Company was incorporated on November 11, 1997 as Acme Clothing
Private Limited. The Company was converted into a public limited
company (i.e. Acme Clothing Limited) on March 11, 2005, in terms of a
special resolution dated March 2, 2005 passed under Section 31 and
Section 44 of the Act in a Meeting of the Shareholders of the Company.
The name of the Company was subsequently changed to Provogue (India)
Limited and a fresh certificate of incorporation dated March 14, 2005
was issued by the Registrar of Companies, Maharashtra, Mumbai.
The Company launched the fashion brand `Provogue' in March 1998 and
within a short span of seven (7) years, it has established a strong
brand identity in the minds of the urban consumer. The Company's
philosophy of `creating trends' in fashion, an aggressive marketing
strategy, coupled with high profile promotional events and its
distribution strategy of retailing through selective stores and malls
has resulted in Provogue being now positioned as a leading fashion
brand in India.
The company has, over a period of time, entered into hospitality
business by opening a lounge under the brand name Provogue Lounge.
These lounges work as a store in the daytime and are converted into a
restaurant and refreshment room in the evening with an extensive
selection of food, beverages and entertainment at value prices.
Recently, the Company acquired from Acme Global the entire business of
export of textile; textile machinery and textile related chemicals and
operates these businesses as its division under the name Acme Global.
Mr. Nikhil Chaturvedi promoted the Company along with his two brothers,
Mr.Akhil Chaturvedi and Mr.Salil Chaturvedi, and friends Mr.Deep Gupta,
and Mr.Nigam Patel. Later, Mr. Rakesh Rawat was also inducted into the
company as a promoter.
The evolution of the Company can be traced through the following
Phase I : The launch
The beginning of 1998 saw Provogue being launched in a Multi Brand
Outlet, i.e. The Bombay Stores, Mumbai and progressing to 120 Multi
Brand Outlets by the end of 1999. The first exclusive `Provogue' store
was opened in Lokhandwala Complex, Andheri, Mumbai in the year 2000.
The Company was able to achieve market penetration by hosting fashion
shows across the country along with an aggressive advertising and PR
campaign, which enabled it in persuading a potential customer to its
brand and its outlets to buy the Company's apparels.
Phase II : Building a brand
The Company has established a distribution network across the country
covering Metro, A Class cities and B Class cities. Over the years, the
Company introduced other product categories like men's trousers, socks,
wallets and t- shirts, which received an overwhelming response from its
customers. Though the products introduced by the Company were doing
exceedingly well, the total retail area available to the Company was
not adequate and restricted it to a few Multi Brand outlets and one
exclusive store in Mumbai. However, in terms of sales, the Company
achieved sales of Rs.1,400 Lacs (US $3 mn approx.) in the year 2000.
Phase III : Building of scope and scale for the brand
Although the sales continued to grow rapidly, expansion had still not
reached its true potential on account of the limited retail area. To
meet the growing demand of its products, the idea of having its
exclusive stores was conceived and thirty-six Studio Stores were
planned to be opened in a time frame of about two years. To achieve
further growth in sales, bollywood actor Fardeen Khan was signed up as
the brand ambassador in July 2001. This gave impetus to the Company's
marketing initiatives and endorsement by the brand ambassador
reinforced the brand image as a trend-setting brand. The Company
expanded its product lines to include knitwear, woolens, ties, scarves,
handbags and other accessories. By December 2002, the Company had
already opened twelve Studio Stores all across the country.
Simultaneously, the Company also expanded its presence in large chain
stores like Shopper's Stop and Piramyd all over India and was the first
brand to be introduced in Westside, a leading retail store.
The Company started its first manufacturing facility at Daman on April
7, 2003, with an installed capacity of 2000 shirts per day. However,
the company outsourced its requirements for trousers and other
accessories. The manufacturers and suppliers are selected for supply to
the Company only if they meet the Company's quality standards. The
manufacturer has to undergo quality control inspections and tests
conducted by the Company before the trousers and accessories are
branded as that of the Company.
Phase IV : Consolidation
With a view to expand its business and enter into the fabric processing
business and exports, the Company entered into a Memorandum of
Understanding ("MOD") dated April 1, 2004 with Acme Global, a
partnership concern, in which the existing promoters (other than Mr.
Akhil Chaturvedi and Mr. Nigam Patel) are partners The understanding
reached between the parties was formalized by executing an agreement
for assignment dated September 28, 2004.
* The company has taken over the business of Acme Global on a going
concern business together with all of its assets and liabilities as on
April 1, 2004 for a consideration of Rs. 2,84,14,814/-
* The said consideration is payable on or before March 31, 2005 or such
extended time as may be mutually agreeable.
* The said consideration is represented by promissory notes made by the
Company In favour of the four (4) partners of Acme Global and till such
time that the said consideration is paid; it shall be treated as
unsecured loans in the books of the PIL.
* The Agreement is effective on and from April 1, 2004.
Acme Global was set up as a partnership firm on December 15, 1999 with
Mr. Nikhil Chaturvedi, Mr.Salil Chaturvedi, Mr.Deep Gupta and Mr.
Rakesh Rawat as the partners sharing profits in the ratio of 1:1:1:2.
Acme Global was involved in the business of export of textile, textile
machinery and textile related chemicals, dyes, etc.
Brief Financials of Acme Global
The brief financials of Acme Global prior to its acquisition were as
(Rs. In Lacs)
2003-2004 2002-2003 2001-2002
Partners Capital 334.02 313.18 247.22
Fixed Assets 26.43 13.23 8.53
Total Income 2541.93 2667.01 1731.39
Net Profit after Tax 107.47 121.74 125.16
Benefits from Acquisition
The strategy behind acquiring the business of Acme Global was to
consolidate the business of the Company. Till now, the Company has been
in the business of apparel manufacturing, outsourcing, branding and
distribution (through its own outlets, national chain stores and multi
brand outlets). With this acquisition, the Company entered into the
business of textile exports, export of textile machinery and textile
The fabric export business provides the Company, the necessary
economies of scale and an understanding of the global textile market.
It also helps the Company in negotiating better rates for the raw
materials required by the Company for its manufacturing facility.
Milestones achieved by the Company:
1997 * Acme Clothing Private Limited was incorporated on
November 11, 1997
1998 * The Company launched its brand "Provogue"
1999 * John Abraham was projected as the brand ambassador for Provogue.
* The Company introduced the brand "Provogue" in National Chain
Stores like Piramyd, Shopper's Stop and Lifestyle
2000 * The Company opened the first "Provogue Studio"
(an exclusive brand outlet) in Lokhandwala, Andheri, Mumbai
2001 * The Company opened its second Studio Store in Chandigarh
* The Company signed bollywood actor Fardeen Khan as the
2002 * The Company set up its factory at Daman to manufacture apparel.
2003 * The Company introduced the concept of "Provogue Lounge" at
High Street Phoenix, Mumbai
2004 * The Company acquired Acme Global which enabled it to enter
into fabric processing business
* The Company entered into a License Agreement with
M/s. Rajni Frames for the manufacture and
sale of eye wear products under its brand name
* The Company acquired 15,906 shares of Acme Hotels & Hospitality
Private Limited ("AHHPL") pursuant to which AHHPL became its
2005 * The Company changed its name to Provogue (India) Limited
Awards and Recognitions:
The company has been consistently recognized as the most admired
apparel manufacturer in India. Images, one of the leading industry
magazine, has instituted various awards known as Images Fashion Awards
(IFA) to recognize the best performers of the fashion and retail
industry. The company has been recognized by the industry for its
various initiatives, which include Brand building, Setting up of own
Exclusive Brand Retail chain and Fashion retailing concepts amongst
others. The company has a unique distinction of winning the `Most
admired product launch' award and also being nominated for the IFA Hall
of Fame: `Most Admired Apparel Company in India' in the same year. A
list of others awards won by the company over the years is in the table
2000 IFA: Winner `Most Admired Product Launch' - Provogue
2000 IFA Hall of Fame: `Most Admired Apparel Company in India' -
2001 IFA: Hall of Fame `Most Popular Fashion Campaign of The Year' -
2001 IFA Hall of Fame `Most Admired Apparel Company in India' -
2001 IFA Hall of Fame: `Most Admired Brand Professional of The Year' -
2003 Lycra(R) IFA: Hall of Fame `Most Admired Fashion Campaign of
The Year' - Provogue (for year 2002)
2003 Lycra(R) IFA Hall of Fame: `Most Admired Brand Professional of
The Year' - Akhil Chaturvedi (for year 2002)
2003 Lycra(R) IFA: Winner `Most Admired Exclusive Brand Retail Chain
Of The year' - Provogue (for year 2002)
2004 Lycra(R) IFA: Winner `Fashion Retail Concept Of The Year' -
Provogue Lounge (for year 2003)
2004 Lycra(R) IFA: Hall of Fame `Most Admired Shirt Brand of The Year'
- Provogue (for year 2003)
2004 Lycra(R) IFA: Hall of Fame `Most Recalled Fashion Campaign Of
The Year' - Provogue (for year 2003)
2004 Lycra(R) IFA: Winner `Most Admired Exclusive Brand Retail Chain
Of The year' - Provogue (for year 2003)
2004 IFA: Hall of Fame `Retailer Of The Year in Fashion' -
Provogue (for year 2003-04)
2004 Golden Scale Award for the Menswear Brand in Apparel by CMAI 2004
2004 DFU's inside Fashion brand award for excellence in retail
-Lycra(R) IFA Winner: `Most Admired Fashion Forward Brand of
the year' - Provogue
-Master Brand Award for Menswear Apparel
-Provogue (India) Ltd signs an exclusive Licensee Agreement with M&B Footwear Pvt Ltd
-Provogue India - WOS enters into MoU with Omaxe Construction, New Delhi
- The Company has splits its face value from Rs10/- to Rs2/-.
- Provogue (India) Ltd has inducted Mr. Punit Goenka into the Board of the Company and he shall be an Independent Non Executive Director of the Company.
-The Company recommended a dividend of Rs. 0.25 per equity share (Face value of Rs. 2/- each) (i.e. 12.50%)
-The Company has recommended a dividend of Re. 0.10 (i.e. 10%) per equity share of face value of Re. 1/- each
-The Company has recommended a dividend of Re. 1/- (i.e. 10%) per equity share of face value of Re. 1/- each.