1.At a Glance

Redtape is India’s homegrown attempt at making you look like a Zara mannequin — but with a desi twist and a better value-for-money pitch. Demerged from Mirza International in 2023, they’ve got 435+ exclusive stores and sell everything from men’s brogues to kids’ sneakers to women’s ethnic wear. Revenue is ₹2,046 Cr, profit is ₹178 Cr, and ROE is a juicy 23.7%. Yet, the market’s treating it like last season’s collection — price down 26% in a year.

2.Introduction

If Bata is your reliable office shoe, Metro Brands is your “I got a bonus” splurge, and Campus is your athleisure sidekick — Redtape is the brand that decided to be all three at once, plus throw in women’s ethnic wear just because why not.

It’s been around since 1996, cut its teeth in the UK market, and then decided Indians also deserve “international style” at reasonable prices. In 2006, it went from “footwear only” to “full-blown fashion & lifestyle brand” — think shoes, clothes, accessories, and the occasional Instagram influencer discount code.

The company’s unique cocktail:

• 25% in-house manufacturing(UPSIDC units)
• 75% imported(hello Bangladesh)
• Integrated retail & online play
• Multi-brand segmentation (Red Tape, Mode, Bond Street)

Post-demerger, Redtape became a standalone listed company in Aug 2023. Investors thought it would sprint like its sneakers… it’s more of a slow jog.

3.Business Model (WTF Do They Even Do?)

Redtape is a vertically integrated fashion retailer insomeways — it makes part of its footwear, contracts the rest, and sources apparel & accessories. It sells through:

• Exclusive Brand Outlets (EBOs):387 in India + 8 overseas
• Shop-in-Shop (SIS) counters:228 across department stores
• Online channels:Own site, marketplaces like Flipkart, Amazon, Myntra

Brands under its belt:

• Red Tape:Men’s apparel, shoes, women’s footwear, accessories
• Mode:Women’s ethnic wear
• Bond Street by Redtape:Affordable men’s casual shoes

Revenue mix isn’t