FabIndia IPO

Strengths

• ✓Leading consumer lifestyle brand focused on authentic craft-based products made using sustainable materials & practices
• ✓Targets people who desire high-quality Indian lifestyle and organic products
• ✓Sustainable business model which prioritizes the interests of Supplier Community
• ✓Established supplier network and supply chain infrastructure
• ✓Offers products through multiple channels for seamless customer experience
• ✓Managed by a highly experienced team of professionals led by the founder
• ✓Capital efficient business model (good investment to expense ratio), with a track record of delivering growth and return on capital

Risks

• !Growth of online retailers may create pricing pressures, increase competition, and adversely affect business, results of operations and financial condition.
• !Significant dependence on a network of Contract Manufacturers (who in turn engage artisans) and farmers for the manufacture of products.
• !Significant portion of revenues is dependent on the sale of clothing.
• !Sale of certain products affected due to seasonal changes.
• !Outstanding litigation proceedings against Company, Directors, Promoters and Subsidiaries.
• !Some part of revenue comes from sales at retail franchise stores, failure to maintain such franchise relationships may affect sales, profits.
• !Focus on using sustainable materials and environmentally processes may lead to increase in the cost of revenue and hinder growth.
• !Dependent on third-party transportation providers for the delivery of raw materials and products.
• !Have certain contingent liabilities that have not been provided for in financial statements. If they materialise, they may adversely affect the financial condition.
• !Have had net outflows of cash from operating activities in the past and may continue to have net cash outflows in future.

About FabIndia

Fabindia is an Indian chain store retailing garments, furnishings, fabrics, and ethnic products handmade by craftspeople across rural India. Fabindia is a legacy brand focusing on handcrafted, indigenous products. The company has established a brand built on artisanal heritage and tradition, inherited across various product categories. Fabindia links around 50,000 craft-based rural producers to modern urban markets, thereby creating a base for skilled, sustainable rural employment, and preserving India's traditional handicrafts in the process.