AS Silvano Fashion Group is an international lingerie distribution group involved in design, manufacturing and marketing of women’s lingerie. In addition, the Group provides a limited volume of sewing services to other manufacturers of women’s lingerie.

The Group’s income is generated by sales of “Milavitsa”, “Alisee”, “Hidalgo”, “Lauma Lingerie” and “Laumelle” branded products through wholesales channel, franchised sales and own retail operated under the “Milavitsa” and “Lauma Lingerie” retail chains. Key sales markets for the Group are Russia, Belarus, Ukraine, Baltics and other markets.

The manufacturing capacity of the Group is comprised of Milavitsa, a lingerie factory located in Minsk (Belarus) and Lauma Lingerie, a lingerie factory located in Liepaja (Latvia). Multiple production facilities in different countries and a diversified retail chain add versatility and flexibility to the operations of the Group.

Organization

As of 31 December 2012 there were altogether 582 Milavitsa and Lauma branded shops. Own retail operations  were conducted in Belarus and Latvia.  As of the end of 12 months 2012 the Group operated 55 own retail outlets  with a total area of 5 015 square meters. As of 31 December 2012, there were 497 Milavitsa branded shops  operated by Milavitsa trading partners in Russia, Ukraine, Moldova, Kazakhstan, Uzbekistan, Kyrgyzstan, Latvia,  Azerbaijan, Armenia, Germany, South Africa, Lithuania, Estonia, Georgia, United Arab Emirates, Iran, Slovenia,  Belgium and Italy.

SP ZAO Milavitsa, established in 1908 and based in Minsk, Belarus, is the largest lingerie sewing factory in Europe. The company manufactures over 20 million lingerie pieces per year, and employs over 1,800 employees.

Milavitsa branded products have the highest brand recognitions in Russia, Belarus and Ukraine and in other countries. Sales are generated through distributors and dealers, with an emphasis placed on sales through own retail chain and Milavitsa franchised stores.

Milavitsa has been gradually decreasing the volume of tolling orders, placing emphasis on production of lingerie under its own brand. Part of sewing is already outsourced to other Belarusian companies.

AS Lauma Lingerie, based in Liepaja, Latvia, was established in October 2005 as a split-off of Lauma AS lingerie operations. Its manufacturing capacity is ca 2 million pieces of intimate apparel items per year. The company employs over 260 workers.

Lauma Lingerie is the leader of the intimate apparel industry in the Baltics. Lauma Lingerie produces high ‘value added’ lingerie, focusing on the upper-middle price segment. Quality is owned to the long experience of the company’s in-house designer team. In the CIS markets Lauma has strengthened its client relationships and achieved a good brand recognition for its lingerie products.

In 2006 Lauma Lingerie restructured its product portfolio into two main brands – Lauma Lingerie and Laumelle, and opened its first Lauma Lingerie retail outlet in the Baltics. As of 31 December 2012, there were 30 Lauma Lingerie retail outlets operated by Lauma Lingerie trading partners in Lithuania, Latvia, Estonia, Belarus and Albania.

STK Milavitsa ZAO, based in Moscow, is a wholesale distributor of SP ZAO Milavitsa and AS Lauma Lingerie in Russian Federation. Sales in Russia accounted for 60.8% of total lingerie sales of the Group in 2012. The company is also responsible for coordination and supporting of Milavitsa franchising.

ZAO Linret, was established in Moscow, Russia to operate retail stores in May 2005. However a strategic decision to shift focus from own retail chain towards the development of Milavitsa franchise network was made in H2 2009 to terminate own retail operations in Russia. As the result, at present the company operates as another wholesale distributor of SP ZAO Milavitsa and AS Lauma Lingerie in Russian Federation and focused mainly on cooperation with Milavitsa franchising partners.

TK Milavitsa, based in Minsk to operate own retail chain in Belarus as well as operate as an official wholesale distributor in Belarus. As of end of Q1 2013, own retail chain includes 49 stores, 46 of them are branded as Milavitsa stores and remaining 3 as Lauma Lingerie stores.

SP Gimil, based in Minsk, is a manufacturing and wholesale company. The company is operating in strong cooperation with SP ZAO Milavitsa.

OAO Junona, based in Minsk, is a manufacturing and wholesale company. The company is operating in strong cooperation with SP ZAO Milavitsa as well as has own manufacturing of clothes for children.

Milavitsa Logistic OOO based in Minsk, was established in December 2010. The company targets rendering of the services for both in- and outbound logistics and distribution of the Group's products.

Strategic Objectives

The strategic goal of the Group is to become a leading branded lingerie manufacturer and retail operator with strong franchisee partners’ focus in Russia, Belarus, Ukraine, Baltics, CIS  countries and, in the long term, in countries of Central and Eastern Europe. The Group develops its business model based on vertical integration of retailing and manufacturing functions across a variety of brands and sectors. The Group intends to ensure that most of its products are exclusively available at and sold through the Group’s retail network and franchising network with mark-ups reflecting the positioning and price point of each product. The strategy will eventually increase the overall revenues and profits of the Group and create additional value for its shareholders.
The Group intends to achieve these objectives by rapidly expanding and strengthening its franchising and own retail networks in existing markets, entering new geographical regions, developing intra-group synergies, and pooling resources and know-how between the various Group companies.