Fab India Case Study

1422 Words Aug 3rd, 2010 6 Pages
FAB INDIA

Company profile

• History

In 1958, well before American companies were sourcing from India, John Bissell left his position as a buyer for Macy’s New York to work as a consultant for the Ford Foundation in order to develop India’s export potential in its emerging textile industry. What Bissell discovered was a village-based industry with a profusion of skills hidden from the world. Determined to showcase Indian handloom textiles while providing equitable employment to traditional artisans, Bissell established Fabindia in 1960 in order to fuse the best aspects of East/West collaboration. Fifteen years later the first Fabindia retail store was opened in Greater Kailash, New Delhi with a range of upholstery fabrics,
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• Products
The product range consists of garments for men, women, children and infants; garment accessories; home furnishings – bed, bath, table and kitchen linen, upholstery fabric, curtains, floor coverings and a range of non textile products like furniture, lights, lamps and stationery. In addition to handcrafted clothing and home furnishings, Fabindia’s product line includes organic foods and personal care products. Fabindia Organics carries several types of cereals, grains, pulses, spices, sugar, tea, coffee, honey, fruit preserves and herbs.
Fabindia Sana- Fabindia’s range of authentic bodycare products includes soaps, shampoos, hair oils, pure oils, moisturisers, body scrubs, face packs, hair conditioners & special skin care products. It also designes a line of trendy and informal wear for youngsters under the brand 'Teen Spirit'. "

• Presence in India and the world
From a turnover of 36 crore rupees in 2000-01, Fabindia has grown to having a turnover of Rs.130 crore in 2005-06. It registered a CAGR of about 38% in the period 2002-06. Such phenomenal growth has not come at the cost of profits. The profitability has been maintained at a rate of 6% for the entire period (See Figure- 2). For Fabindia William Bissell has set a very ambitious target of reaching 250 stores and a turnover of Rs.1000 crore by 2011. The growth is expected to come from new stores as well as increase in sales from existing stores.That increase will be
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