The Hindu Business Line : S. Kumars embarks on rapid expansion drive

Spreading out
Plans to bring three new designs a day and 90 in a month
Plans a capital expenditure of Rs 1,200 crore spread over three years

Hyderabad , Aug. 14

Diversified textile group S. Kumars has announced that it would open up 100 stores in 100 days to roll out its Carmichael House range of home linen. The company has roped in actress-model Sushmita Sen as its brand ambassador for this product range and expects to invest about Rs 27 crore in marketing and ad blitz.

The Chief Executive Officer of S. Kumars Nationwide Ltd, Mr Aloke Banerjee, said Carmichael House is a premium home textile range, which has established its first franchisee outlet in Hyderabad apart from its own in-stores across the country and has signed up with about 67 franchisees.

Wide range

It is the company's endeavour to locate 100 outlets by September-end, of them 30 would be company-owned outlets. In Hyderabad alone, it plans to set up four more outlets. The Carmichael range will roll out an array of home textile materials — bed linen, kitchen and table linen, curtains and upholstery for homes, touching all segments of premium, mid and economy range.

The company plans to bring three new designs a day and 90 in a month that would provide the range and options a discerning buyer would like in the marketplace. Through large branded stores, they will have access to latest design, he said.

Outlining the company's expansion plans, Mr Banerjee said that it has planned a capital expenditure of Rs 1,200 crore spread over three-year time frame.

This includes setting up of new processing plants in the country and expanding the product range, including focus on overseas market.

Revenues

Last fiscal, the company recorded a total turnover of Rs 900 crore and has projected revenues of Rs 1,200 core this year. Of the Rs 900-crore revenue, Reid & Taylor range accounts for Rs 270 crore, S. Kumars' other products accounted for Rs 510 crore, Rs 100 crore from the wardrobe range and Rs 50 crore from other sheets based products.

Giving an overview of the Rs 9,500-crore domestic upholstery market, Mr Banerjee said that apart from the organised segment, this market is extremely fragmented.

The urban market accounts for about 45 per cent of the total business, offering huge scope for expansion through branded outlets.

The market is drifting from small stores to malls, where people are increasingly flocking for shopping.