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Marc Loire Fashions

• Marc Loire Fashions is coming out with an initial public offering (IPO) of 21,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 100 per equity share.
• The issue will open on June 30, 2025 and will close on July 02, 2025.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 10 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Finshore Management Services.
• Compliance Officer for the issue is Vasant Kuber Soni.

Profile of the company

Marc Loire Fashions is engaged in Women’s Footwear Products, boasting an impressive catalogue of over 800 unique styles that cater to a broad spectrum of tastes and occasions. Its collection includes party heels, ethnic flats, wedges, winter boots, mules, formal heels, loafers, cork sandals, arc-supported flats, athleisure and activewear footwear, sneakers and other styles that blend comfort with fashion. This diversity allows it to cater to every need, from everyday wear to special occasions, providing its customers with wide range of options to express their style.

The company operates through a dual business model encompassing both Direct-to-Consumer (D2C) and Business-to-Business (B2B) strategies. Its D2C model allows it to connect directly with its end customers via various online platforms, ensuring a seamless and personalized shopping experience. Simultaneously, its B2B operations strengthen its reach through offline retail relationships with wholesalers, Shop-in-Shop Stores, enabling widespread market penetration. It manages its operations, leveraging a network of more than 40 trusted vendors for raw materials and finished goods. This vendor network includes two promoter group entities, allowing it to ensure quality control and maintain seamless production flows.

The company is dedicated to creating footwear that not only enhances style but also delivers unparalleled comfort and durability. By continually innovating and expanding its product offerings, it aims to become the preferred choice for women’s footwear in domestic markets. As it moves forward, its commitment remains steadfast to redefine fashion in women’s footwear and set new benchmarks in the industry.

Proceed is being used for:

• Funding capital expenditure for expansion of its retail network by launching 15 new Exclusive Brand Outlets (EBOs)
• Funding capital expenditure for purchase of multi-purpose racks
• Meeting working capital requirements
• Meeting issue expenses
• General corporate purposes

Industry Overview

India’s footwear market has been steadily growing at 15% per annum in revenue terms over the past few years. Accounting for 9% of the annual global production of 22 billion pairs, India is the top footwear manufacturer in the world after China. According to market research and advisory firm Mordor Intelligence, this market is forecast to grow at 12.83% annually between 2021 to 2028. While that offers an attractive opportunity for investors, the post-pandemic world seems to be strengthening the prospects of the footwear industry. A recovery in economies across the world after prolonged lock-downs, change in lifestyles and higher awareness about health have given a fillip to footwear demand. The footwear industry in India, being a labour-intensive sector that employs more than 4 million people in India, is a driving force for the growth in the Indian manufacturing sector. Out of 16 billion pairs of footwear, which are produced in the world on an annual basis, India produces 2065 million pairs of different categories. But, India exports only 115 million which is quite low as per the criteria of the Self-reliant vision.

The beaming light of hope in this new normal after night of this pandemic has given a new direction and boost to the footwear industry. The efforts together can progressively make the Indian footwear industry to the top among the global industries, and self-reliant in true terms. India consumed 2.56 billion pairs of footwear in financial year 20, an annual growth of 4.5% over FY 2015. FY 2021 saw a 35 % fall in sales. A CAGR of 8-10% is expected in FY 22- FY 25, with consumption touching 2.9 billion pairs by FY 2025. 

Now it can be said that India has state-of -art footwear manufacturing plants. This sector has matured from manual manufacturing to automated systems. In 2018, Indian government permitted 100% FDI through the automatic route for the footwear sector. Growth in India’s footwear industry will continue to be market-driven. It is highly competitive business, with the unorganized sector dominating the market and a clutch of global brands fighting for a higher market share. With technology and quality of footwear improving year after year, the Indian footwear industry is stamping its class and expertise in the global market. And it’s marching ahead. 

Pros and strengths

Strong brand recognition: The company has developed well established market presence and solid brand recognition in certain parts of India, built over a decade of consistent business operations. This brand has established itself as a trusted name, evident from repeat purchases by its customers. This repeat purchase reflects the brand's ability to consistently meet customer expectations and maintain a high level of satisfaction, driving customer loyalty. The brand’s success is likely attributed to quality, reliability, and a focus on customer-centric values, which have resonated well with its customer base. Marc Loire’s established reputation gives it a competitive advantage, distinguishing it from other brands and fostering a loyal consumer community that trusts its products.

Strong supply chain: The company has established a resilient supply chain network that is integral to its operational success and market agility. This network is anchored by a robust domestic vendor ecosystem, which emphasizes supporting local manufacturing and reducing reliance on imported components. By sourcing materials and components primarily within India, the company not only strengthens its commitment to indigenous production but also reduces its exposure to international supply chain disruptions, ensuring a more stable and predictable production process. Its vendor relationships are key to its ability to respond swiftly to changing market trends. Regular and proactive engagement with vendors allows it to efficiently translate emerging consumer preferences into market-ready products. Vendors play a strategic role in the company’s innovation pipeline, helping the brand to experiment with new designs, materials, and production techniques while maintaining high quality standards.

Strong online presence: the company’s fast-growing online presence is a vital component of its sales, allowing it to reach customers widely and boost brand visibility. By strategically positioning its products on major B2C platforms like Amazon, Flipkart, and Myntra, Marc Loire is able to cater directly to consumers who prefer the convenience and accessibility of online shopping. These platforms give the company access to thousands of potential customers, enabling the brand to grow its footprint, transcending the limitations of physical stores. The company’s strong online presence enables it to stay responsive to digital trends and customer behaviors, which are increasingly shifting toward e-commerce.

Risks and concerns

Generate majority portion of sales from its operations in certain geographical regions: The company generates majority portion of its revenues are made in certain regions. Its top 10 states i.e. Delhi, Haryana, Maharashtra, Karnataka, Uttar Pradesh, Telangana, Tamil Nadu, West Bengal, Kerala and Gujarat cumulatively constitutes 85.83%, 84.56% and 87.96% for the Fiscal 2025, 2024 and 2023 respectively. Such geographical concentration of its business in any of these regions heightens its exposure to adverse developments related to competition, as well as economic and demographic changes in these regions which may adversely affect its business prospects, financial conditions and results of operations.

Warehouses are located in Delhi: The company’s warehouses are located in Delhi. Any materially adverse social, political or economic development, natural calamities, civil disruptions, or changes in the policies of the state or local governments in this region could adversely affect operations at its warehouses. Natural disasters such as earthquakes, extreme climatic or weather conditions such as floods or droughts, or diseases heightened or particular to the region, may adversely impact the supply of products and local transportation. Any such adverse development affecting continuing operations at its warehouses could result in significant loss from inability to meet inventory schedules and stock appropriately, which could materially affect its business reputation within the industry.

Business is subject to seasonal and other fluctuations: The company is impacted by seasonal variations in sales volumes, which may cause its revenues to vary significantly between different quarters in a Fiscal. Typically, it sees an increase in its business before Festive Seasons and during end of season sales. As a result, its revenue and profits may vary significantly during different financial periods and certain periods may not be indicative of its financial position for a full financial year and may be significantly below the expectations of the market, analysts and investors. Therefore, its results of operations and cash flows across quarters in a Fiscal may not be comparable and any such comparisons may not be meaningful, or may not be indicative of its annual financial results or its results in any future quarters or periods.

Outlook

Marc Loire Fashions is engaged in high-end fashion brand specializing in stylish and comfortable women's footwear. The company offers a diverse range of designs to cater to various preferences. Their collection includes products like open-toe block heel metallic fashion sandals and lightweight athleisure knitted activewear slip-on sneakers. The company has strong integrated system. It also has strong online presence. On the concern side, the company generates majority portion of sales from its operations in certain geographical regions and any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations. Moreover, its warehouses are located in Delhi, and any adverse development affecting such region may have an adverse effect on its business, prospects, financial condition and results of operations.

The company is coming out with an IPO of 21,00,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 100 per equity share to mobilize Rs 21 crore. On performance front, the revenue from operations has increased to Rs 4,225.74 lakh (99.51% of the total revenue) in FY 2024-25 from Rs 4,020.30 lakh (99.51% of the total revenue) in FY 2023-24 i.e. revenue from operation increased by Rs 205.44 lakh (5.11% for the said period). Moreover, the restated Profit after Tax for FY 2024-25 increased to Rs 470.54 lakh (11.08% of the total income) as against Rs 407.56 lakh (10.09% of the total income) in the FY 2023-24.

The company places high importance on delivering quality in every product, which is essential for building trust and loyalty. By ensuring that materials, design, and expertise meet rigorous standards, the company has built a reputation for durability and comfort. This quality-first approach not only attracts new customers but also fosters repeat purchases, solidifying its position in the market as a reliable and respected brand. Going forward, expansion is at the core of the company’s growth strategy. The brand is actively pursuing new markets and increasing its presence across India. This includes venturing into both metropolitan cities and rural areas, ensuring access to a broader customer base. By establishing a strong offline and online presence, the company aims to reach more consumers and strengthen its market position.