The Hindu Business Line : Oswal to expand retail venture

North India based textile company Oswal Group announced its retail arm Oswal Retail Pvt Ltd's plans to expand and consolidate its presence in the country with an investment of Rs 50 crore.

The company that had launched its lingerie retail store, `Sensa', in December 2004, plans to open 120 stores by 2009. It has now changed its name to `Straps' along with a new brand identity.

"At present 11 stores are already operational. We plan to increase the number of stores to 25 by the end of this fiscal year," said Mr Adish Oswal, Managing Director, Oswal Retail Pvt Ltd. He further said that though the markets in the North and West form 65 per cent of its focus, the company would also be looking at doing business in Bangalore and Hyderabad. The lingerie has been priced in a range of Rs 80 to Rs 6,000.

The company has already spent Rs 20 crore of the total investment. Mr Oswal said that the funds for the expansion procedure came from internal accruals and through financial institutions in the form of debts. He further said that all the stores would be company-owned and that he was not looking at a franchisee format.

"We are looking to clock revenues of Rs 500 crore this fiscal and go up to Rs 1,000 crore by 2010. We are expecting to rake in Rs 150 crore from the retail venture alone. Retail will contribute 25 per cent of the revenues by 2010," said Mr Oswal.