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Ashapura Intimates: On an aggressive expansion path, buy on dips

2 The company operates these EBOs through multiple formats depending on geographic location and size – Company Owned Company Operated (COCO), Dealer Owned Dealer Operated (DODO), Company Owned Franchise Operated (COFO) and Franchise Owned Franchise Operated (FOFO).  AIFL’s opened 6 new EBOs in the last 6 months across Mumbai, Delhi, Dehradun, Sonepat, Kurukshetra, and Pune, taking its store tally to above 40. The management has shifted focus to the EBO model in recent years as it results in higher earnings before interest, tax, depreciation and amortisation (EBITDA) margin and better working capital management. Going forward, it plans to strengthen its pan-India presence by opening 15-20 EBO's per year. The company has set-up 3 new subsidiaries in Q1 FY19. AIFL Ecommerce Pvt has been set-up to focus on the online shopping business. AIFL Retails Pvt will cater to retail business inside and outside India. AIFL Vastram Pvt will deal with manufacturing materials as well as finished products. Besides, AIFL has also incorporated a wholly-owned overseas subsidiary in Singapore - AIFL Singapore PTE - to develop a research and development studio for latest designs.

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