Cantabil aligns production with sales

To tackle the slowdown, Cantabil has completely aligned its production and procurement of materials with budgeted sales. Cantabil is a fashion brand into designing, manufacturing, branding and retailing of apparels, offering quality products at competitive prices. The brand’s target audience is the middle class. An organised player, the brand has been regularly adopting and implementing various statutory regulations with a complete set of professional mechanism. Some of the challenges faced include: voluminous transactions, keeping pace with rapid changes in regulatory norms and GST implementations. Cantabil has a significant presence in Tier I cities and its expansion plans are targeted towards Tier II and III cities since expansion in these towns is cost effective and less competitive as not many brands are available in these markets. About 70 to 75 stores will open in the next one year. The strategy will include both company owned stores as well as asset light franchise models.

The company pays taxes in book profit under the Minimum Alternate Tax (MAT) provisions of the Income Tax Act. The company will continue to pay taxes under MAT for this financial year and will get the benefit of tax cut under MAT. With the continued rapid growth of the company, it is expecting to fall under the normal tax provisions in the coming years.